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Genesee & Wyoming 2Q earnings shine

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Written by: Douglas John Bowen

Genesee & Wyoming, Inc. early Thursday, Aug. 1, 2013, reported earnings of $65.1 million, or $1.14 per diluted share, for the second quarter of 2013, up from $36.4 million, or 84 cents per diluted share, in the same quarter of 2012.

Total operating revenue rose 84.3% to $400.7 million, up 84.3% from the second quarter of 2012.

Combined company same railroad revenue increased 10%. "To provide comparative context for 2013 consolidated revenue and traffic volumes, G&W is providing "Combined Company" comparisons as though the RailAmerica railroads were owned by G&W during 2012. In doing so, G&W has reclassified RailAmerica's 2012 information to conform with G&W's presentation," the company said.

GWI's operating ratio was 73.2%, an improvement of 250 basis points, though "adjusted primarily to exclude RailAmerica integration costs and net gain on the sale of assets); Reported operating ratio of 73.2% (74.1% North American & European Operations; 69.7% Australian Operations)," the company said.

In a statement, President and CEO Jack Hellmann said, "The second quarter of 2013 was the second reporting period in which G&W's consolidated results included the former RailAmerica railroads. We are pleased to report continued strength in our financial results, with adjusted earnings per share up more than 50%.

"Our combined company same railroad adjusted revenues increased 10% in the second quarter of 2013, led by iron ore in Australia, petroleum products in North America, and improving steam coal shipments in the United States. In addition, each of our eleven operating regions effectively managed its costs," Hellman said.


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