Wednesday, February 11, 2009

GWI 4Q profit rises, but misses target

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Greenwich, Conn.-based Genesee & Wyoming Inc. Wednesday reported an 81% increase in fourth-quarter profit compared with the comparable quarter in 2007, helped by higher revenue and an income-tax benefit which boosted earnings per share by about 30 cents. Earnings rose to $25.3 million, or 70 cents per share, from $13.9 million, or 39 cents per share, in the same quarter last year. Revenue rose almost 11% to $149.2 million.

Minus the tax benefit, the results fell short of Wall Street estimates. Analysts surveyed by Thomson Financial expected 46 cents per share on $155.3 million in revenue. Minus the $6.5 million benefit from the retroactive extension of a U.S. short-line tax credit, and other items, freight revenue increased 16% to $95.2 million, the company said. Freight revenue from existing railroads fell by $6.7 million.

For the full year, GWI said its earnings rose to $72.2 million, or $1.99 per share, from $55.2 million, or $1.41 per share, in 2007.