The Greenbrier Companies Inc. (GBRX), Lake Oswego, Ore., released its financial results July 1, 2015, for its third fiscal quarter, which ended on May 31, 2015.
Tank Car of the Future
The wait for a new tank car specification is over. Now comes the “fun” part: Retrofits to older cars, and potentially onerous operating rules.
Shares of The Greenbrier Companies and Trinity Industries fell 10.2% and 7.7%, respectively, in afternoon trading on Wednesday, Oct. 1, 2014, one day after the deadline for final comments on the U.S. DOT Pipeline and Hazardous Materials Administration’s Notice of Proposed Rulemaking on tank cars carrying flammable liquids. Wall Street analysts attributed the stock plunge (which also affected American Railcar Industries, down 5.8%) to investor wariness over an “oil tank car rule fight.”
Not including orders for 7,000 new railcars worth $700 million announced May 21, 2014, Greenbrier has been awarded contracts for 7,700 cars from multiple buyers valued at more than $960 million. Among the orders are 3,500 Tank Cars of the Future from multiple customers in the U.S. and Canada, “the first awards in the rail industry for a dramatically improved tank car for transporting flammables,” Greenbrier said.