Greenbrier decreases net earnings, revenues in Q2 FY2016

The Lake Oswego, Ore.-based railroad transportation equipment manufacture posted net earnings of $44.9 million on revenues of $669.1 million for the second quarter of its fiscal year 2016, which ended Feb. 29, 2016.    Greenbrier Companies, Inc. posted net earnings of $44.9 million in the second quarter of fiscal year 2016, which ended Feb. 29, 2016, a 35.3 percent decline from the first quarter of fiscal year 2016, according to the railroad transportation equipment manufacturer’s most recent unaudited financial statements.
   Diluted earnings per share (EPS) decreased from $2.15 per diluted share in the prior quarter to $1.41 per diluted share.
   Greenbrier’s revenues dropped 16.6 percent quarter-over-quarter to $669.1 million, primarily as a result of decreased deliveries.
   Broken down into individual segments, the company’s manufacturing segment posted revenues of $454.5 million for its fiscal 2016 second quarter, down 35 percent from the previous quarter.
   Meanwhile, revenues in the leasing and services segment skyrocketed 396.4 percent quarter-over-quarter to $124.1 million, driven by the sale of an acquired railcar portfolio.
   In addition, the wheels and parts segment’s revenues surged 15 percent from the previous quarter to $90.5 million, which Greenbrier primarily attributed to the seasonal increase in wheel and component volumes, along with a more favorable product mix.
   Greenbrier received diversified orders for 3,000 new railcars valued at nearly $310 million during the fiscal 2016 second quarter, while new railcar deliveries totaled 4,500 units for the quarter.
   In addition, Greenbrier established a 50-50 joint venture with Sumitomo Corporation of Americas called GBSummit, Greenbrier Chairman and CEO William A. Furman said.
   “When it opens in early 2017, GBSummit will be the preeminent axle machining location on the US West Coast that supports growing intermodal rail activity and will create value for our customers and partners,” said Furman.
   Looking ahead, Greenbrier narrowed its guidance for fiscal 2016 and now expects full-year diluted EPS in the range of $5.70 per diluted share to $6.10 per diluted share. In addition, the company projects revenues will exceed $2.8 billion for the fiscal year and new railcar deliveries will total between approximately 20,000 units and 22,000 units.
   “Greenbrier is adapting well to the present industry and economic climate. We enjoy a diversified backlog, with non-energy related railcars representing 83 percent of our total backlog,” Furman said in a statement. “Our healthy backlog and our integrated business model, unique in the industry, position us for steady performance into 2017 and beyond. Greenbrier has a strong balance sheet and we will continue to strategically invest globally in assets and projects generating high rates of return while returning capital to shareholders.”