Trinity Industries, Inc. announced third-quarter earnings of $149.4 million, or 90 cents per diluted share, up 43% from $99.6 billion, or 63 cents per share, in the third quarter of 2013. Trinity reported the news late Tuesday, Oct. 28, 2014, after the close of trading on Wall Street.
Revenue of $1.56 billion was up 41% from $1.11 billion in the third quarter of 2013.
"During the third quarter, Trinity generated record revenues and its 17th consecutive quarter of year-over-year growth in net earnings," said Trinity Chairman, CEO, and President Timothy R. Wallace. "Our major businesses reported a record combined backlog valued at more than $7.1 billion at the end of the third quarter, representing 15% growth year-over-year. "
Trinity's Rail Group reported record revenue of $996.4 million and an operating profit of $186.4 million, resulting in increases compared to the third quarter of 2013 of 39% and 53%, respectively, the company said, attributing the increase to higher deliveries, improved pricing, and a more favorable product mix.
The Rail Group shipped 7,745 railcars and received orders for 14,120 railcars during the third quarter. The Rail Group backlog increased to a record $6.1 billion at September 30, 2014, representing a record 51,725 railcars, compared to a backlog of $5.5 billion as of June 30, 2014, representing 45,350 railcars.
In a note to clients Tuesday evening, KeyBanc Capital Markets Inc. analyst Steve Barger said, "Total backlog now stands at a record $7.1 billion, up from $6.6 billion last quarter. Concurrent with these results, TRN increased its 2014 EPS guidance to $4.08-$4.16 from $3.90-$4.10, which equates to 4Q14 guidance of $0.75-$0.83 vs. consensus of $0.86."
Barger added, "Overall, we think this is a stronger quarter than it appears, TRN’s backlog provides substantial earnings visibility and industry conditions remain supportive."