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Genesee & Wyoming Inc. saw its net income and sales surge in the second quarter.
The railroad operator on Thursday reported net income of $64.8 million, or $1.19 a share, compared with $36.4 million, or 90 cents a share, a year ago.
Sales increased more than 80 percent to $400.7 million, from $217.4 million. The increase included $167.4 million in revenues from new operations, partially offset by a $1.5 million decrease from the net depreciation of foreign currencies relative to the U.S. dollar, the company said.
Operating expense for the second quarter rose to $293 million from $155 million a year ago.
The company's traffic increased 34,296 carloads, or 7.7 percent, compared with the second quarter 2012.
It was the second reporting period in which GWI’s consolidated results included the former RailAmerica Inc., which GWI acquired in October.
In the second quarter, GWI incurred RailAmerica acquisition-integration costs of $1.2 million, primarily associated with employee severance arrangements. Also, net gain on the sale of assets was $1 million, compared with $6.2 million in the second quarter 2012.
“We are pleased to report continued strength in our financial results, with adjusted earnings per share up more than 50 percent,” said Jack Hellmann, president and CEO, in a statement.
“As we enter the second half of 2013, we are focused on commercial development across our broad national footprint, further reducing our costs as well as ensuring the successful startup of new iron ore projects in both Australia and Canada,” Hellmann said. “With our integrated operations performing well, our balance sheet deleveraging and $400 million of revolver capacity, we also continue to evaluate multiple investment opportunities.”
Connecticut-based GWI, 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.
GWI stock (NYSE: GWR) was trading at 3:20 p.m. Thursday at $89.02, down 64 cents from Wednesday’s close.
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