Greenbrier reports strong Q2 results

The Lake Oswego, Ore.-based railroad transportation equipment supplier had profits $50.4 million on revenues of $630 million for the quarter ended Feb. 28.    The Greenbrier Companies, Inc. posted $50.4 million in net profits for its second fiscal quarter ended Feb. 28, 2015, according to the company’s latest financial statements. The Lake Oswego, Ore.-based railroad transportation equipment supplier had revenues of $630 million for the quarter.
   Adjusted EBITDA for the quarter was $102.7 million for Greenbrier, 16.3 percent of the company’s revenue.
   Greenbriar noted, “New railcar backlog as of February 28, 2015 was 46,000 units with an estimated value of $4.78 billion (average unit sale price of $104,000), compared to 41,200 units with an estimated value of $4.20 billion (average unit sale price of $102,000) as of November 30, 2014,” marking a sixth consecutive quarter of growth for the company.
   Greenbriar also received diversified orders for 10,100 new railcars, valued at $1.09 billion, during the quarter and new railcar deliveries totaled 5,200 units, compared to 4,000 units for the quarter ended November 30, 2014.
   “Our record results this quarter, including margin expansion and earnings growth, reflect the soundness of our diversified and integrated business model, improved business execution and greater scale,” Chairman and CEO William A. Furman said of the results. “Our aggregate gross margin in the second quarter grew to 19.9%, nearly twice last year’s level; at the same time we continue to execute on ramping up production on new manufacturing lines.
   “Our diverse new railcar backlog of 46,000 units represents the sixth consecutive quarter where the quantity and value of our backlog has increased.  It is now more than triple the size of just one year ago, with production on certain production lines stretching into 2019.  Nearly 80% of our year-to-date orders for 24,200 railcars are non-energy related, including orders for double stack intermodal cars, grain hopper cars, automotive carrying cars, non-energy related tank cars, boxcars, and mill gondola cars for scrap steel. These orders, along with others in our backlog, include multi-year orders for various car types, a positive indication that our customers believe, as do we, that end-user demand for new railcars will remain solid for the foreseeable future.  The regulatory picture for tank cars transporting hazardous materials should be clarified no later than May. We expect Greenbrier’s Tank Car of the Future will be the new standard, and that additional new car and retrofit orders will occur regardless of oil prices,” Furman added.