Friday, January 08, 2010

Greenbrier reports higher net loss, cautious outlook

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The Greenbrier Companies Friday reported revenue totaling $172 million for its first quarter of 2010, down from $256 million in the prior year's first quarter.

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The company recorded a net loss of $$3.2 million for the quarter, compared to a net loss of $3.9 million in the prior year's first quarter. EBITDA for the quarter was $14.8 million, or 8.6% of revenue, compared to $12.5 million, or 4.9%, of revenue in the first quarter of 2009.

New railcar deliveries in the first quarter of 2010 were approximately 350 units, compared to 800 in the first quarter of 2009.

The company modified its multi-year railcar agreement with General Electric Railcar Services in subsequent to the quarter. Greenbrier's new railcar manufacturing backlog as of Nov. 30, 2009, inclusive of the GE contract modification, was approximately 4,900 units with an estimated value of $430 million, compared to 15,900 units valued at approximately $1.39 billion as of Nov. 30, 2008.

William A. Furman, president and chief executive officer, said, "Our results continue to reflect depressed demand as a result of the weakeconomic environment. We remain focused on cost containment and operational efficiency, and managing the company for cash flow and liquidity in this environment. While recent indicators suggest that a recovery may be emerging in certain sectors of the economy, North American rail loadings remain soft and a significant portion of the entire North American railcar fleet remains idle. However, we are starting to see signs that certain of our markets are beginning to stabilize and slightly improve."