Deutsche Bank: Genesee & Wyoming Reports January Carloads Down 11.9% Y/Y
According to a research report published today be Deutsche Bank, Genesee & Wyoming Inc. (NYSE: GWR) reported January carloads down 11.9% y/y this morning before the open.
Deutsche Bank commented in the report, “Excluding the tailwind from GWR's Arizona Eastern Railway (AZER) and Hilton & Albany Railroad acquisitions, carloads were down 13.9.% y/y on a same railroad basis. January weakness was driven by Coal & Coke carloads (down 40.2% y/y) due to fewer shipments in the Illinois, New York/Pennsylvania and Mountain West regions. GWR's Other carload group fell 31.3% y/y due to lower overhead coal shipments from the company's Ohio region. Though January carloads were disappointing, they are likely the result of near-term issues such as the Edith River bridge disruption and scheduled maintenance at coal facilities (coal is expected to decline 15% y/y in 2012 vs. down 40% y/y in January).”
Deutsche Bank reiterates its Buy rating and $72 PT on Genesee & Wyoming, which closed Friday at $60.02.
