Greenbrier lands $200 million in railcar orders
Written by William C. Vantuono, Editor-in-Chief
The Greenbrier Companies Monday said it has received orders for 3,000 new railcars with an aggregate value of approximately $200 million. The orders announced Monday, which consist of 2,250 doublestack intermodal platforms, 500 covered hopper cars, and 250 railcars of various types for the European market, are expected to be delivered in calendar 2010 and 2011.
Lake Oswego, Ore.-based Greenbrier noted the new orders are incremental to the orders to build 1,700 new railcars and refurbish 1,100 existing railcars announced on August 25.
The company Monday also announced preliminary unaudited financial results for its fourth quarter ended August 31, 2010. Based on the Company’s initial closing, revenue is expected to be approximately $185 million. Greenbrier anticipates a net loss for the quarter, before a special item, to be in the range of $0.15 to $0.20 per share. In addition, the company anticipates earnings of $0.50 per share, related to a special non-cash item for the release of the liability related to the 2008 deconsolidation of its former subsidiary, TrentonWorks.
Net earnings (including the special item) are anticipated to be in the range of $0.30 to $0.35 per share. The preliminary quarterly results announced are subject to further review by Greenbrier and year-end audit, and the company stressed that the results “should be considered preliminary and subject to change.”
In a statement, William A. Furman, president and chief executive officer of Greenbrier, said, “Over the past two months, we have received orders for over 4,700 new railcars and refurbishment work for 1,100 existing railcars, which taken together have a combined value of approximately $330 million. These new orders are expected to have a meaningful positive impact on our financial results in 2011 and reinforce our view that a recovery is under way in the overall North American new railcar market.”
He continued, “Our fourth-quarter financial results were below our expectations, due primarily to our refurbishment & parts and marine operations. New railcar manufacturing and leasing & services exceeded our expectations.”
