Tuesday, August 03, 2010

Genesee & Wyoming earnings beat Street

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Genesee & Wyoming reported second quarter net income of $20.6 million or 49 cents per diluted share, exceeding the Wall Street estimate of 44 cents. This compares with earnings of $7.4 million or 20 cents per share in the second quarter of 2009.

Total revenues were up 2% to $158.5 and freight revenue increased 26% to $100.2 millio

GWI's operating income in the second quarter was $37.9 million, an increase of $23.2 million compared with $14.6 million in the second quarter of 2009. The operating ratio dropped to 76.1%, down from 88.7% a year ago.

GWI noted that in June 2009, its subsidiary, Huron Central Railway Inc. (HCRY), intended to cease operations. As a result, GWI's results in the second quarter of 2009 included a non-cash write-down of HCRY's non-current assets of $6.7 million and related charges of $2.3 million, partially offset by a tax benefit of $3.6 million (net after-tax impact of $5.4 million, or $0.15 per diluted share). GWI has continued to operate HCRY under a temporary operating agreement that terminates in mid-August 2010, unless renewed by the affected parties