Genesee & Wyoming Inc. net income and earnings per share soared in the third quarter, but missed Street estimates.
G&W reported adjusted net income of $68.4 million, compared with $32 million a year ago. Adjusted earnings per share were $1.19, compared with 72 cents in the third quarter last year.
The company reported an 80 percent increase in revenues to $401.4 million in the third quarter from $222.7 million a year ago.
Analysts had expected diluted earnings per share of $1.22 on revenues of $403.7 million.
“The third quarter of 2013 was the third reporting period in which G&W’s consolidated results included the former RailAmerica railroads,” President and CEO Jack Hellmann said in a statement. “The combined business continued to perform well with combined company adjusted operating revenues up 11 percent, corporate overhead cost synergies now fully achieved and G&W’s adjusted diluted earnings per share up 49 percent in the third quarter.”
G&W acquired RailAmerica railroads last year for $1.4 billion.
Hellmann said G&W began hiring and training new crews at several former RailAmerica railroads to support traffic growth, which was up nearly 7 percent in the third quarter. The railroad operator also has elected to upgrade facilities, equipment and track at many of the same railroads.
Connecticut-based G&W (NYSE: GWR), which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the U.S., Canada, the Netherlands and Australia.
The company reported its results Nov. 1.
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