Genesee & Wyoming Reports Results for the Third Quarter of 2014

Third Quarter Highlights

  • Total operating revenues increased 7.8% to $432.5 million.

  • Adjusted income from operations increased 16.7% to $122.6 million; Reported income from operations increased 21.0% to $123.1 million. (1)

  • Adjusted operating ratio improved 2.1 percentage points to 71.7%; Reported operating ratio of 71.5% (71.4% North American & European Operations; 72.3% Australian Operations). (1)

  • Adjusted income before income taxes (pre-tax income) increased 19.1% to $109.3 million; Reported income before income taxes increased 24.1% to $109.8 million. (1)

  • Adjusted diluted earnings per common share (EPS) were $1.21, a 16.3% increase; Reported diluted EPS were $1.27, a 9.5% increase. (1)

Jack Hellmann, President and CEO of G&W, commented, “We are pleased with our results for the third quarter of 2014, as revenue increased approximately 8%, our adjusted operating ratio improved 2.1 percentage points to 71.7%, and our adjusted pre-tax income increased approximately 19%. In North America, our business was strong in the third quarter, with 7% growth in same railroad freight revenue, led by frac sand, salt, steel and agricultural products. Meanwhile, the newly established Rapid City, Pierre & Eastern Railroad (RCP&E) performed well, as we benefited from the record harvest in South Dakota and improved the railroad’s fluidity with connecting carriers.” (1)

“In Australia, our business was slightly weaker in the third quarter, with revenue in Australian dollars down approximately 2%, as intermodal and agricultural shipments weakened and track access income declined due to the previously announced closure of an iron ore mine.”

“Looking ahead, we remain optimistic about the strength of our North American business, which represents 80% of total revenues, and cautious about weakness in our Australian business, which represents 20% of total revenues, due to lower iron ore shipments resulting from a significant decline in iron ore prices. Meanwhile, we continue to actively evaluate several acquisition and investment opportunities in North America and internationally.”

Read more: http://phx.corporate-ir.net/phoenix.zhtml?c=64426&p=irol-newsArticle&ID=1984161

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