Greenbrier Cos. reports strong 1Q 2012

The Greenbrier Cos. Friday reported fiscal 2012 first-quarter revenue of $398.2 million, which it said was “double the $198.9 million realized in the prior year’s first quarter,” and net earnings of $15.5 million, or 48 cents per diluted share, compared with a net loss of $2.3 million, or 11 cents per share, in the comparable quarter of a year ago. 

The company’s 2012 first fiscal quarter ended Nov. 30, 2011. 

New railcar deliveries in the company’s first fiscal quarter of 2012 were 3,300 units, compared with 1,050 units in the first quarter of FY2011. During the first quarter, the company received orders for 1,600 new railcars. Subsequent to the quarter’s end, orders were received for 2,400 additional units, valued at approximately $240 million, the company said.

Greenbrier’s new railcar manufacturing backlog as of Nov. 30, 2011 was 13,300 units with an estimated value of $1.1 billion, compared with 8,100 units with an estimated value of $580 million as of Nov. 30, 2010. 

President and CEO William A. Furman said, “I am pleased with our first quarter results, as our operating momentum continues to build. Business trends continue to be strong in our North American rail-related businesses. In response, over the past five quarters we have steadily ramped up new railcar production in North America, increasing production rates on existing lines and opening up new or previously idle production lines to meet growing demand. We continue to believe industry fundamentals are solid, with a number of secular and cyclical drivers boosting railcar demand. Among these drivers are increased rail traffic, overall transportation market share gains by rail, pent up demand from the previous downturn, and a growing strength in the U.S. energy market, which we expect will continue.”

Mark Rittenbaum, chief financial officer, added, “Momentum from the second half of fiscal 2011 has carried over into the first fiscal quarter of 2012. We continue to realize increased operating leverage through efficiencies associated with operating at higher production rates and cost reduction initiatives implemented during the downturn. We expect this trend to continue as our growing workforce becomes trained and as we benefit from our strategy of entering into shorter-term lease contracts during the downturn, which are now renewing in a more favorable pricing environment.”

Greenbrier’s Wheel Services, Refurbishment & Parts segment, which provides wheel services, repairs and refurbishes railcars, and provides railcar parts across North America, recorded revenue of $117.7 million in the first quarter, compared with $95.3 million in the first quarter of 2011.