(The following appeared on the Progressive Railroading website on July 31, 2009.)
Yesterday, Genesee & Wyoming Inc. (GWI) reported second-quarter net income of $7.4 million, down more than 50 percent compared with second-quarter 2008 net income. Diluted earnings per share fell from 42 cents in the year-ago period to 20 cents.
GWI’s total revenue declined 14.8 percent to $130.1 million while same railroad revenue decreased 24.7 percent. Excluding changes from currency and fuel sales, same railroad revenue dropped 15.1 percent year over year.
Freight revenue fell 13.3 percent to $79.3 million as carloads declined 4.3 percent compared with second-quarter 2008. Excluding currency changes, same railroad freight revenue decreased 23.4 percent.
The short-line holding company’s operating ratio increased 8.1 points to 88.7. Excluding certain items, the operating ratio rose only 0.3 points to 82.5. Operating expenses dropped from $123 million in the year-ago period to $115.4 million
“Our financial results for the second quarter were consistent with the revised guidance that we provided in early June,” said GWI President and Chief Executive Officer John Hellmann in a prepared statement. “Our revenues proved to be 6 percent weaker than the first quarter, and we consequently implemented additional cost reductions.”