Thursday, April 26, 2012

Rail Group aids Trinity Industries 1Q profit

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Dallas-based Trinity Industries Inc., aided by its Rail Group, late Wednesday reported a first-quarter net profit of $52.9 million or 66 cents per share, compared with $24.2 million, or 30 cents per share, in the first quarter of 2011. Earnings beat the Wall Street consensus estimate of 51 cents per share.

Company revenue of $925.3 million rose from $634.2 million in the first quarter of 2011, also beating the consensus estimate of $920.6 million.

Trinity expects second-quarter earnings in the range of 70 cents to 75 cents per share, and full-year 2012 earnings in the range of $2.55 to $2.70 per share.

"From a book:bill standpoint, TRN's Rail Group posted 0.65x on a unit basis, but we note the mix remained quite favorable, with the average car price of its recent orders approximating $120,000 vs. the average car price in backlog of roughly $95,000," said KeyBanc Capital Markets Inc. analysts Steve Barger and Alexander Walsh.

The analysts also noted, "The Rail Group achieved solid operating leverage while backlog moderated to 27,245 cars (from 29,000 in 4Q11). Production in the quarter came in at 5,010 railcars, which was in line with our forecast of 5,000 cars and ahead of the 3,255 orders taken in the quarter."

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