Trinity quarterly results decline on weaker car deliveries
Written by Railway Age StaffCar builder Trinity Industries on Tuesday said revenue and profits declined on “significantly lower” railcar deliveries in the first quarter of 2017 compared to the year-ago quarter.
Rail Group revenues were $478.3 million compared to $846.9 million in the first quarter of 2016. Operating profit and profit margin totaled $50.7 million and 10.6% compared to $157.2 million and 18.6%.
Deliveries in the 2017 quarter for the Dallas-based company totaled 3,770 railcars while orders came to 970 railcars, compared to 7,145 deliveries and 1,620 orders in 2016. Backlog was $2.7 billion, or 26,420 cars as of March 31, against a backlog of $3 billion, or 29,220 cars, as of December 31, 2016.
Revenue from car leasing and management was $178.9 million, from $178.5 million in the same quarter of 2016. Segment profit was $85 million, up from $74.2 million, which included a profit of $4.4 million sales of leased railcars. Trinity said the increase in current-quarter operating profit came mostly from net additions to the lease fleet and lower maintenance and compliance expenses, partially offset by the effect of lower average lease rates and lower sales of leased railcars.
Trinity narrowed the range of its per-share earnings estimate for the full year to between $1.00 and $1.25 from its previous guidance of between $1.00 and $1.35 per share.
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