|PRINT | CLOSE WINDOW|
Genesee & Wyoming Inc.’s stock hit a one-year high Monday despite posting a net loss for the third quarter.
The railroad operator on Monday reported a net loss of $19.6 million, or 47 cents a diluted share, for the quarter, down from net income of $32.9 million, or 77 cents a share, a year ago. The company attributed the loss primarily to its $1.39 billion acquisition of RailAmerica Inc., which GWI closed on Oct. 1.
Excluding the RailAmerica acquisition and financing-related expenses, GWI’s adjusted earnings were 74 cents a share, beating analysts’ expectations of 69 cents per share for the quarter.
GWI logged revenues of $222.7 million for the quarter, compared with $217.2 million a year ago. Analysts expected revenues of just more than $219 million.
Operating expenses for the quarter were $170 million, up from $161 million in 2011.
GWI’s traffic was 242,783 carloads, down 5.2 percent. The company said the decreased traffic was because of weak salt and coal shipments in North America.
GWI shares (NYSE: GWR) were trading at $73.82 early-afternoon Monday, up more than 3 percent from Friday’s close of $71.49. Earlier in the day, the company’s stock hit $75.82, a new high for the past 52 weeks. The previous high for the year was $73.95.
GWI said shares of RailAmerica were being held in a voting trust while the U.S. Surface Transportation Board reviews GWI’s pending control application. A decision is expected during the fourth quarter or first quarter 2013.
RailAmerica also reported its third-quarter results Monday. The company reported a net income of $5.9 million, or 12 cents a share, down from $9.1 million, or 17 cents a share, a year ago. RailAmerica said the decrease primarily was a result of transaction-related expenses of $16.6 million.
The company logged operating revenues of $155.4 million, up 11 percent from last year.
“Although we did not own RailAmerica in the third quarter of 2012, its operating results were consistent with our expectations,” said Jack Hellmann, president and CEO of GWI, in a statement. “We are excited about the outlook for the Genesee & Wyoming and RailAmerica combination and we hope to receive the STB decision in the near term.”
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email firstname.lastname@example.org.