(The following appeared on the Progressive Railroading website on November 3, 2009.)
In the third quarter, Genesee & Wyoming Inc.’s (GWI) total revenue declined 14.4 percent to $136.4 million compared with third-quarter 2008’s total primarily because of the depreciation of the Australian and Canadian dollars and Euro vs. the U.S. dollar. However, in comparison to the second quarter, revenue rose 5 percent.
The quarter-over-quarter increase “is indicative of a growing degree of economic stability,” said GWI President and Chief Executive Officer John Hellmann in a prepared statement.
Today, GWI also reported that third-quarter freight revenue tumbled 13 percent to $83.2 million. Net income inched up 2 percent to $21.7 million, but operating income declined 10 percent to $31.1 million, income from continuing operations dropped 3 percent to $19.6 million and earnings fell 9 percent to 53 cents per diluted share.
In addition, the short-line holding company’s operating ratio improved 1.1 points to 77.2 and operating expenses decreased 16 percent to $105.3 million.
During the quarter, GWI — which owns and operates 62 regionals and short lines in the United States, Canada, Australia and Netherlands — completed the sale of its Mexican and Bolivian rail interests, which generated total gains of $2.6 million.
“We remain active in evaluating investment opportunities in both North America and Australia,” said Hellmann. “Given the strength of our balance sheet, we are well positioned to execute quickly on the right transactions.”