Genesee & Wyoming Q2 Profit Tops Estimates

reported better-than-expected earnings for the second quarter on Monday. The Darien, Connecticut-based company reported quarterly net income of $52.8 million, or $0.92 per share, versus $60.7 million, or $1.07 per share, in the year-ago period. Excluding non-recurring items, the company's earnings slipped 17 percent to $0.93 per share. Its operating revenue climbed 30.8 percent year-over-year to $542.2 million from $414.6 million. However, analysts were expecting earnings of $0.91 per share on revenue of $543.65 million. G&W's same railroad freight revenue fell 16.4 percent year-over-year to $265.0 million, while traffic rose 47.3 percent to 750,887 carloads. Its operating revenue from North American operations declined 4.5 percent to $311.0 million, while traffic shrank 8.3 percent to 413,888 carloads. Operating revenue from Australian operations fell 19.6 percent to $66.8 million, while traffic declined 10.4 percent to 52,104 carloads. Operating revenue from U.K./European operations rose to $164.4 million in the latest quarter, versus $5.7 million in the year-ago quarter. Jack Hellmann, President and CEO of G&W, said, "Our financial results for the second quarter of 2015 were consistent with our updated guidance. However, our results were disappointing with second quarter adjusted diluted earnings per share declining 17% versus last year…In the second half of 2015, we expect somewhat better financial results based on modest improvements in North American carloads, seasonal improvements in the U.K./Europe business including intermodal shipments, as well as a sharp focus on additional cost reductions. Meanwhile, we continue to generate strong free cash flow and to evaluate a range of acquisition and investment opportunities worldwide." Genesee & Wyoming shares rose 0.34 percent to close at $71.22 on Friday.