Thursday, July 29, 2010

Trinity Rail Group posts loss, but backlog rises

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In its second-quarter 2010 report, Trinity Industries, Inc. said its Rail Group had revenue of $112.9 million and an operating loss of $2.7 million. This compares to revenue of $303.3 million and a loss of $328.7 million in the second quarter of 2009, which included a $325 million pre-tax goodwill impairment charge.

TrinityRail’s order backlog grew to approximately 3,990 railcars valued at around $300 million on June 30, compared with a backlog of 2,980 cars valued at $250 million of March 31.

TrinityRail delivered approximately 890 railcars and received orders for approximately 1,900 during the second quarter.

TILC had approximately 50,970 cars in its fleet as of June 30, 2010. This compares to a fleet of approximately 50,350 cars on March 31. TILC’s lease fleet utilization rose to 98.7% as of June 30, 2010, compared to 98.3% as of March 31, 2010.

On a corporate basis, Trinity Industries reported net income attributable to stockholders of $18.4 million for the second quarter ended of 2010. The second quarter of 2009 had a loss of $209.4 million. Excluding the goodwill impairment charge, income was $33.9 million.

In a note, Steve Barger, director, Industrial Manufacturers, for KeyBanc Capital Markets, Inc., observed, “Overall, we consider this a solid quarter in what continues to be a tough environment, and we believe investors should be encouraged by the consistency of TRN’s performance over recent quarters.




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