Greenbrier Cos. 2Q revenue up, loss narrows

Lake Oswego, Ore.-based Greenbrier Cos. Thursday reported a narrow net loss of $550,000, or 2 cents per share, for its fiscal second quarter ending Feb. 28, an improvement over a lost of $4.8 million, or 28 cents per share, in the second fiscal quarter of 2010. Revenue of $286.3 million was up in the second quarter from the $200 million in the comparable 2010 period.

The company noted new railcar deliveries rose in the second quarter of 2011 to 2,200 units, compared to 800 units in the second quarter of 2010. Greenbrier’s new railcar manufacturing backlog as of Feb. 28, 2011 was 9,500 units with an estimated value of $720 million. Subsequent to quarter’s end, the Company received orders for an additional 2,400 units.

Said President and CEO William A. Furman, "We are pleased to report near-breakeven results, consistent with our previously disclosed outlook. This goal was achieved during a quarter when we were ramping up railcar production, and were impacted by both severe weather at certain facilities and expiration of a management services contract.

“Our business visibility continues to improve,” Furman said. “new railcar orders are continued evidence of the recovery in new railcar manufacturing. Since the beginning of our fiscal year, we have received orders for 10,200 new railcars. We believe the expanding product diversity of new orders signals the next stage of the recovery in the new railcar market. As we strive to meet ongoing demand, we continue to ramp up production and are on track with plans to open an additional production line in July 2011. We continue to expect to deliver between 9,000 and 10,000 new railcars in fiscal 2011."

He added, "Revenue in our Wheel Services, Refurbishment and Parts segment has grown for the second consecutive quarter, driven by improvement in our wheel services business. We believe the number of railcars in storage is returning to more normal levels. This factor, along with the continued increase in railcar loadings and decline in velocity, should lead to stronger performance for this segment in the second half of the year."

Furman concluded, "We remain on track to achieve our fiscal 2011 goals. In the second half of the fiscal year, we will continue to focus on expanding gross margins, improving working capital and operational efficiencies, enhancing our leasing & services platform, leveraging our integrated business model and returning to sustained profitability.”