Greenbrier Cos. 1Q shows improvement

The Greenbrier Cos. Friday reported a net loss for its fiscal first quarter of $2.3 million, or 11 cents per diluted share, compared with a loss of $3.2 million, or 19 cents per diluted share, in the comparable 2010 quarter. Revenue for the first quarter was $201.4 million, up from $171.7 million in the 2010 period.

EBITDA for the quarter was $16.7 million, or 8.3% of revenue, compared to $14.8 million, or 8.6% of revenue in the first quarter of 2010, the company said. Results for the 2011 first quarter include a gain of $1.1 million, net of taxes, or approximately 5 cents per diluted share, from insurance proceeds received by the company associated with a fire in January 2009 at one of the company’s wheel services facilities.

The Lake Oswego, Ore.-based company noted new railcar deliveries in the first quarter of 2011 were 1,050 units, compared to 350 units in the first quarter of 2010. Greenbrier’s new railcar manufacturing backlog as of November 30, 2010 was 8,100 units with an estimated value of $580 million. During the first quarter, the Company received orders for 4,100 new railcars. Subsequent to quarter end, orders were received for 1,900 additional units. The combined value of these new railcar orders is approximately $400 million.

SteveBarger, director, Industrial Manufacturers, KeyBanc Capital Markets Inc., said the results “support our positive view on the shares and the railcar cycle.”

Said William A. Furman, president and chief executive officer of The Greenbrier Cos., “Our quarterly results are in line with previously disclosed expectations. We continue to benefit from a recovery in the demand for new railcars. Since August 31, we have received orders for 6,000 new railcars, with an aggregate value of approximately $400 million, demonstrating our ability to capture business as the new cycle begins.

“This new demand is driven in part by an ongoing improvement in new rail traffic,” Furman said. “According to the Association of American Railroads, calendar 2010 North American general freight car loadings were up 9.4% and intermodal loadings were up 14.7% compared to 2009. To address new orders and our growing backlog, we will ramp up production rates beginning this month and plan to open an additional production line in June of 2011. Currently, we anticipate delivering about 9,000 – 10,000 new railcars in fiscal 2011.”

Furman concluded, “In fiscal 2011, we will continue to focus on improving gross margins, executing on operational efficiencies, managing for cash flow and liquidity, leveraging our integrated business model and returning to sustained profitability. Our recent successful stock offering further strengthens our balance sheet and liquidity and positions us to participate in the market upturn while continuing to de-leverage the company.”