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Genesee & Wyoming reports Q2 results, beats Street

Rochester Business Journal
August 1, 2014

A relatively strong economy and decreased rail network congestion helped drive a solid increase in per-share earnings and revenues for Genesee & Wyoming Inc. in the second quarter, beating Street estimates.

G&W reported adjusted net income of $63.8 million. That compares with adjusted net income of $57.6 million in the second quarter of 2013. Adjusted diluted earnings per share increased to $1.12, compared with $1.01 in the same quarter last year.

The company reported a more than 3 percent increase in total operating revenues to $414.6 million from $400.6 million.

Analysts had expected diluted earnings per share of $1.11 on revenues of $411.13 million.

“In the second quarter, we were engaged in three key initiatives,” President and CEO Jack Hellmann said in a statement. “First, we successfully commenced operations on the RCP&E railroad in June and we are now actively working with our Class I partners to provide the necessary supply of railcars and locomotives to move another strong grain harvest in South Dakota.”

G&W completed the refinancing of its credit facility, Hellman added, and the company continued to evaluate multiple acquisition and investment opportunities worldwide.

The company’s traffic in the second quarter increased 6 percent to 509,631 carloads, primarily due to increases of coal and coke traffic in the Midwest and Ohio Valley region.

For the six-month period, total revenue increased to $790.8 million from $775.6 million in the same time period last year.

Hellman noted that while G&W’s North American business outlook remains favorable in 2014, the closure and temporary closure of mines in Australia will result in a decline of $5 million in revenues over the remainder of the year.

Connecticut-based G&W (NYSE: GWR), which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the United States, Canada, the Netherlands and Australia.

Shares of its stock were down nearly 4 percent to $96.04 in midday trading.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.


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