Production of next-generation Acela Express fleet underway
Stadler unveils TEX Rail Flirt DMU
Siemens invests in remote monitoring specialist Wi-Tronix
DB consortium selected for California high speed rail
Judge puts the skids on state’s proposed rail trail
Amtrak's CEO shares his vision for rail's future
Flight Rail: a new type of train?
America’s short lines play the long game
New York rail operator bolsters security after London bombing
On the heels of an “underwhelming” second quarter, GBX’s results for the third quarter ended May 31, 2019 include a $10 million ($.30 per share) non-cash goodwill impairment charge in the railcar repair operation and $4.3 million, net of tax, ($.13 per share), of American Railcar Industries (ARI) acquisition costs.
GBX added that its adjusted net earnings were $29.6 million ($.89 per diluted share) excluding the goodwill impairment and ARI acquisition costs; adjusted EBITDA for the quarter was $84.4 million, or 9.9% of revenue; the new railcar backlog as of May 31, 2019 was 26,100 units with an estimated value of $2.74 billion; the board declared a quarterly dividend of $.25 per share, payable on August 8, 2019 to shareholders as of July 18, 2019; and the acquisition of the manufacturing assets of ARI remains subject to regulatory review and approval.
Looking ahead to 4Q2019, GBX said, based on current trends, it believes that “deliveries will be between 7,000 and 8,000 units; revenue will be nearly $1 billion; and diluted EPS will fall between $1.30 and $1.40 excluding any ARI acquisition costs or operational benefits.”
“Greenbrier gained the momentum we expected during the quarter, led by improved operating efficiencies in our core North American manufacturing business,” said William A. Furman, GBX Chairman and CEO. “Greenbrier’s current and expected performance is consistent with our prior comments that revenue and margin would be back-half weighted this fiscal year. These gains were muted in our overall financial results due to continued weakness in Greenbrier’s railcar repair business and certain international operations, along with costs associated with the ARI acquisition.”
“Despite certain legacy headwinds and the management attention required on a major acquisition in the quarter, we are pleased with our improved core operating performance,” Furman added. “We anticipate further strong momentum in the fourth quarter. Realignment of our railcar repair network is expected to be completed by the end of the year, which will help earnings performance in the Wheels, Repair & Parts segment. In Brazil, the long-delayed rail concession renewal process negatively affected the operations of our joint venture, resulting in a loss this quarter. Greenbrier’s Brazil operations are being [downsized] for the current demand environment before order activity ramps up as expected in 2020 and over the coming years. Meanwhile, pricing and manufacturing performance in Europe responded more slowly than expected, but is now kicking in. Headwinds from Europe and Brazil are expected to turn to tailwinds in Q4 and beyond, along with other international performance contributions.”
This article first appeared on www.railwayage.com
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2020 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.