Thursday, July 26, 2012

Trinity reports surge of railcar orders

Written by  Luther S. Miller, Senior Consulting Editor
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Trinity Industries, Inc. reported Wednesday that its Rail Group received orders for approximately 8,610 new railcars and shipped approximately 5,245 railcars during the second quarter.

The Railcar Leasing and Management Services Group reported an operating profit 
from sales of cars from the lease fleet of $15.1 million compared with $3.4
million in the same period last year.

The Inland Barge Group received orders of approximately $203 million.

Trinity reported second-quarter revenue growth of 45% and net income growth 
of 126% over second-quarter 2011 The company said it anticipates full
-year 2012 earnings per common diluted share of between $2.95 and $3.10,
 compared to its previous full-year 2012 guidance of between $2.55 and $2.70.

“I am pleased with our accomplishments during the second quarter and the
 overall rate of growth we are experiencing in our company, both in terms of 
growing top-line and bottom-line results,” said Trinity Chairman, CEO, and President Timothy R. Wallace. “During the second half of 2012, we are repositioning a 
portion of our production capacity to meet the growing demand for products 
serving the oil, gas, and chemicals industries. These products are well-
aligned with our core competencies. The repositioning will include, among 
other things, the conversion of certain facilities from manufacturing wind
towers to railcars. These initiatives will enhance our ability to meet 
market demand and achieve additional operating leverage in the future. As we 
shift a portion of our production capacity to pursue these opportunities,
 there are multiple variables that can influence the timing of events
pertaining to quarterly financial results. As a result, the earnings 
guidance we are providing is for the second half of 2012, rather than
 quarterly guidance.”

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