Genesee & Wyoming Reports Traffic for May 2016

DARIEN, Conn.--(BUSINESS WIRE)--

Genesee & Wyoming Inc. (G&W) GWR today reported traffic volumes for May 2016.

G&W's traffic in May 2016 was 232,747 carloads, a decrease of 9,215 carloads, or 3.8%, compared with May 2015.

G&W's traffic in the second quarter of 2016 through May was 462,719 carloads, a decrease of 30,940 carloads, or 6.3%, compared with the second quarter of 2015 through May.

The table below sets forth summary total carloads by segment for May 2016 and May 2015.

Segment					May 2016					May 2015					Change					% Change
North American Operations					129,916					133,320					(3,404)					(2.6%)
Australian Operations					14,973					16,690					(1,717)					(10.3%)
U.K./European Operations					87,858					91,952					(4,094)					(4.5%)
Total G&W Operations					232,747					241,962					(9,215)					(3.8%)

May 2016 Highlights by Segment

• North American Operations: Traffic in May 2016 was 129,916 carloads, a decrease of 2.6% compared with May 2015. The decrease was primarily due to reduced shipments of coal & coke traffic, partially offset by increased metals traffic.
• Australian Operations: Traffic in May 2016 was 14,973 carloads, a decrease of 10.3% compared with May 2015. The decrease was primarily due to reduced agricultural products traffic.
• U.K./European Operations: Traffic in May 2016 was 87,858 carloads, a decrease of 4.5% compared with May 2015. The decrease was primarily due to reduced coal & coke and minerals & stone traffic, partially offset by increased intermodal traffic.

The table below sets forth North American Operations carload information for May 2016 and May 2015 by commodity group.

North American Operations:					May 2016					May 2015					Change					% Change
Agricultural Products					16,777					17,937					(1,160)					(6.5%)
Autos & Auto Parts					2,710					2,653					57					2.1%
Chemicals & Plastics					14,771					15,162					(391)					(2.6%)
Coal & Coke					14,616					19,663					(5,047)					(25.7%)
Food & Kindred Products					4,869					4,502					367					8.2%
Lumber & Forest Products					11,603					10,895					708					6.5%
Metallic Ores					2,113					1,861					252					13.5%
Metals					13,022					11,249					1,773					15.8%
Minerals & Stone					17,001					18,084					(1,083)					(6.0%)
Petroleum Products					9,059					7,721					1,338					17.3%
Pulp & Paper					13,666					14,936					(1,270)					(8.5%)
Waste					4,115					3,183					932					29.3%
Other					5,594					5,474					120					2.2%
Total carloads					129,916					133,320					(3,404)					(2.6%)

• North American Operations traffic decreased 3,404 carloads, or 2.6%.
• Coal & coke traffic decreased 5,047 carloads, or 25.7%, primarily due to decreased shipments of utility coal in G&W's Midwest and Northeast regions.
• Metals traffic increased 1,773 carloads, or 15.8%, primarily due to increased steel shipments in G&W's Southern and Coastal regions.
• All remaining traffic decreased by a net 130 carloads.

The table below sets forth Australian Operations carload information for May 2016 and May 2015 by commodity group.

Australian Operations:					May 2016					May 2015					Change					% Change
Agricultural Products					3,164					4,798					(1,634)					(34.1%)
Intermodal					5,325					5,380					(55)					(1.0%)
Metallic Ores					706					1,593					(887)					(55.7%)
Minerals & Stone					5,758					4,897					861					17.6%
Petroleum Products					20					22					(2)					(9.1%)
Total carloads					14,973					16,690					(1,717)					(10.3%)

The decrease in Australian Operations traffic was primarily due to reduced agricultural products traffic primarily as a result of low global crop prices and also due to reduced metallic ores traffic as a result of the previously announced closure of a customer manganese mine in 2015. These decreases were partially offset by increased minerals & stone traffic due to increased shipments of gypsum.

The table below sets forth U.K./European Operations carload information for May 2016 and May 2015 by commodity group.

U.K./European Operations:					May 2016					May 2015					Change					% Change
Agricultural Products					150					52					98					NM
Coal & Coke					2,869					7,477					(4,608)					(61.6%)
Intermodal					72,545					70,013					2,532					3.6%
Metallic Ores					93					-					93					NM
Minerals & Stone					12,201					14,410					(2,209)					(15.3%)
Total carloads					87,858					91,952					(4,094)					(4.5%)

• U.K./European Operations traffic decreased 4,094 carloads, or 4.5%.
• Coal & coke traffic decreased 4,608 carloads, or 61.6%, primarily due to decreased shipments in the U.K. and Poland.
• Minerals & stone traffic decreased 2,209 carloads, or 15.3%, primarily due to decreased shipments in Poland and the U.K.
• Intermodal traffic increased 2,532 carloads, or 3.6%, primarily due to increased shipments in the U.K.
• All remaining traffic increased by a net 191 carloads.

Second Quarter of 2016 Through May Traffic

The table below sets forth summary total carloads by segment for the second quarter of 2016 through May and the second quarter of 2015 through May.

Segment					QTD May 2016					QTD May 2015					Change					% Change
North American Operations					254,785					276,502					(21,717)					(7.9%)
Australian Operations					30,052					35,494					(5,442)					(15.3%)
U.K./European Operations					177,882					181,663					(3,781)					(2.1%)
Total G&W Operations					462,719					493,659					(30,940)					(6.3%)

The table below sets forth North American Operations carload information for the second quarter of 2016 through May and the second quarter of 2015 through May by commodity group.

North American Operations:					QTD May 2016					QTD May 2015					Change					% Change
Agricultural Products					32,217					36,206					(3,989)					(11.0%)
Autos & Auto Parts					5,226					5,191					35					0.7%
Chemicals & Plastics					30,480					31,070					(590)					(1.9%)
Coal & Coke					29,410					44,257					(14,847)					(33.5%)
Food & Kindred Products					9,770					9,772					(2)					(0.0%)
Intermodal					12					6					6					NM
Lumber & Forest Products					22,812					22,813					(1)					(0.0%)
Metallic Ores					4,206					4,138					68					1.6%
Metals					24,435					22,218					2,217					10.0%
Minerals & Stone					33,977					36,719					(2,742)					(7.5%)
Petroleum Products					16,779					16,026					753					4.7%
Pulp & Paper					27,243					30,153					(2,910)					(9.7%)
Waste					7,153					6,441					712					11.1%
Other					11,065					11,492					(427)					(3.7%)
Total carloads					254,785					276,502					(21,717)					(7.9%)

The table below sets forth Australian Operations carload information for the second quarter of 2016 through May and the second quarter of 2015 through May by commodity group.

Australian Operations:					QTD May 2016					QTD May 2015					Change					% Change
Agricultural Products					7,062					10,186					(3,124)					(30.7%)
Intermodal					10,192					10,347					(155)					(1.5%)
Metallic Ores					1,426					5,241					(3,815)					(72.8%)
Minerals & Stone					11,329					9,677					1,652					17.1%
Petroleum Products					43					43					-					0.0%
Total carloads					30,052					35,494					(5,442)					(15.3%)

The table below sets forth U.K./European Operations carload information for the second quarter of 2016 through May and the second quarter of 2015 through May by commodity group.

U.K./European Operations:					QTD May 2016					QTD May 2015					Change					% Change
Agricultural Products					372					156					216					NM
Coal & Coke					5,878					15,902					(10,024)					(63.0%)
Intermodal					146,974					137,279					9,695					7.1%
Lumber & Forest Products					90					-					90					NM
Metallic Ores					93					-					93					NM
Minerals & Stone					24,475					28,326					(3,851)					(13.6%)
Total carloads					177,882					181,663					(3,781)					(2.1%)

Other

The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.

Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, income from operations or net income.

G&W's three reportable segments are summarized as follows:

• The North American Operations segment is comprised of nine operating regions in the U.S. and Canada. This segment represents approximately 60% of G&W's total operating revenues and approximately 80% of G&W's total income from operations.
• The Australian Operations segment is comprised of operations in South Australia, the Northern Territory and New South Wales. This segment represents approximately 10% of G&W's total operating revenues and approximately 10% of G&W's total income from operations.
• The U.K./European Operations segment is comprised of operations in the U.K. and continental Europe. This segment represents approximately 30% of G&W's total operating revenues and approximately 10% of G&W's total income from operations.

About G&W

Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 11 operating regions with 7,500 employees and more than 2,800 customers.

• G&W's nine North American regions serve 41 U.S. states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.
• G&W's Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
• G&W's U.K./European Region is led by Freightliner, the U.K.'s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

For more information, visit gwrr.com.

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