Greenbriar buys stake in South American rail builder

The railcar manufacturer also saw its first-quarter revenue drop by 20%.    The Greenbriar Companies, a railcar manufacturer, has purchased a 19.5-percent stake in Brazilian railcar manufacturer Amsted-Maxion Hortolandia for $15 million.
   The agreement includes an option to buy more than 40 percent more of the company over the next two years.
   The deal with Amsted-Maxion Hortolandia, which has a 70-percent share of the new car market in South America, is expected to close in the second quarter.
   “Using Brazil as a platform, this strategic investment permits Greenbrier to expand our geographic reach into South America, as part of a broad-based Americas strategy, building on our substantial manufacturing base in Mexico and the U.S.,” stated William A. Furman, Greenbriar’s chairman and chief executive officer.
   Greenbriar saw its net earnings drop to $32.8 million during the first quarter of fiscal year 2015 from the $33.7 million recorded a year ago.
   The company generated $495.1 million in revenue, a year-over-year decrease of nearly 20 percent.
   Revenue was down by 22.8 percent in the manufacturing segment due to lower deliveries, and in the wheels and parts sector, revenue dropped by 17.5 percent. Leasing and services saw its revenue jump by 35.7 percent because of “syndication of third-party-produced railcars,” the company said.   
   Furman said robust earnings expectations will continue for 2015, despite the recent drop in oil prices. The company foresees better results during the second half of the fiscal year
   “The leading indicator for our business is the condition of the U.S. economy, not energy prices,” he stated. “Macro-economic conditions indicate strength and expansion for the U.S. economy in 2015 and beyond, with lower energy prices creating a strong impetus for auto production, consumer spending and overall growth. We are also making investments toward the future.”