Greenwich, Conn.-based Genesee & Wyoming Inc. Thursday reported second-quarter net income of $7.4 million, or diluted earnings per share of 20 cents, less than half the net income of $15.4 million, or 42 cents per diluted share, in the second quarter of 2008.
GWI's income from continuing operations in the second quarter was $8.1 million compared with income from continuing operations of $16.2 million, in the second quarter of 2008.
The company said revenue fell $22.7 million, or 14.8%, to $130.1 million, compared with $152.7 million in the second quarter of 2008. Same-railroad revenue decreased $37.7 million, or 24.7%, partially offset by revenue of $15.1 million from acquisitions.
GWI announced last month that subsidiary Huron Central Railway Inc. intended to discontinue operations in October. As a result, GWI said its results in the second quarter included a non-cash write-down of HCRY's non-current assets of $6.7 million as well as restructuring and related charges of $2.3 million (net after-tax impact of $5.4 million, or $0.15 per diluted share).
John C. Hellmann, GWI president and CEO, said, "Our financial results for the second quarter were consistent with the revised guidance that we provided in early June. Our revenues in the second quarter of 2009 proved to be 6% weaker than the first quarter of 2009, and we consequently implemented additional cost reductions. We now have 13% of our locomotive fleet parked and 10% of our employees furloughed. These and other cost-cutting initiatives have enabled us to maintain a core operating ratio in line with last year."