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Rail News: Railroading Supplier Spotlight
Rail supplier news from Wabtec, Cubic, Greenbrier and Trinity (Oct. 27)
The U.S. Department of Justice (DOJ) has filed a proposed consent decree to approve Wabtec Corp.'s acquisition of Faiveley Transport S.A. While terms of the sale have already been agreed upon by the buyer and approved by the DOJ, the decree seeks approval of a settlement resolving the department's concerns about the acquisition, Wabtec officials said in a press release. That settlement calls for the sale of certain U.S. assets owned by Faiveley. Completion of Wabtec's acquisition also remains subject to the European Commission's approval of the buyer of Faiveley Transport Gennevilliers, the sintered brake material activity of Faiveley.
The Metropolitan Atlanta Rapid Transit Authority (MARTA) has awarded a $12.7 million, two-year contract extension to Cubic Transportation Systems (CTS) for automated fare collection maintenance services. The contract includes options to support future updates, which could increase the value to $52 million if all options are exercised, CTS officials said in a press release. Under the contract, CTS will provide first-line hardware support, corrective and preventive maintenance services, local infrastructure support and software support and maintenance management. In 2006, CTS designed and delivered MARTA's Breeze Card, an automated fare collection system that uses the company's smart card ticketing technology.
For its fourth fiscal quarter, The Greenbrier Cos. Inc. reported net income of $33.6 million, or $1.06 per diluted share, compared with $66.9 million or $2.02 per diluted share in the same quarter last year. Revenue came in at $595.2 million versus $765 million in 2015's fourth fiscal quarter. The company's new rail-car backlog as of Aug. 31 stood at 27,500 units with an estimated value of $3.19 billion. New rail-car deliveries totaled 4,600 units for the quarter. For fiscal-year 2016, Greenbrier logged net income of $183.2 million, or $5.73 per diluted share, on record revenue of $2.68 billion. New rail-car deliveries for the year totaled 20,300 units.
Trinity Industries Inc. reported third-quarter net income of $84.2 million compared with $204.3 million for the same period last year. The company logged 55 cents per common diluted share compared with $1.31 per share last year. Third-quarter revenue came in at $1.1 billion, down from $1.5 billion in the same quarter last year. Trinity's third-quarter results reflect reductions in year-over-year production volumes and product mix changes in the company's rail-car and barge manufacturing businesses, said Chairman, Chief Executive Officer and President Timothy Wallace in a press release. Meanwhile, the company's rail group reported $720.8 million in revenue and $103.6 million in operating profit, compared with $1.07 billion in revenue and $223.3 million in operating profit during the same quarter last year.
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