(Reuters circulated the following on April 29, 2009.)
Railroad operator Genesee & Wyoming Inc (GWR.N) reported a 34 percent rise in quarterly profit helped mainly by cost cuts, beating Wall Street estimates.
For the first quarter, net income rose to $13.9 million, or 38 cents a share, from $10.4 million, or 29 cents a share, a year earlier.
The results included a gain of 5 cents a share from the U.S. short line tax credit, which is in effect through 2009.
Revenue fell 2 percent to $138.5 million.
Analysts on average were expecting earnings of 37 cents a share, before special items, on revenue of $146.1 million, according to Reuters Estimates.
The severe contraction of North American industrial production reduced shipments of commodities, Chief Executive John Hellmann said in a statement.
The company freights a range of commodities, including pulp and paper, coal, coke and ores, metals, farm and food products, and petroleum products.
Genesee & Wyoming, the second-largest short-line regional railroad in North America, reported a 16.6 percent decline in same-railroad revenue.
Same-railroad traffic fell more than 8 percent mainly due to declines in traffic of pulp and paper, metals, lumber and forest products.
Operating expenses for the company, which operates short-line and regional freight railroads in the United States, Canada, Australia and the Netherlands, fell 6 percent to $112.4 million.
“Several areas of Genesee & Wyoming’s business have been less affected by the recession, including our grain shipments in Australia, our coal shipments in the United States and our contract revenue such as industrial switching,” the CEO said.
Until there is greater clarity on the timing of global economic recovery, the company will continue to manage costs aggressively and be “patient in targeting new acquisition opportunities,” he added.
Shares of the Greenwich, Connecticut-based company closed at $26.78 Tuesday on the New York Stock Exchange.