Greenbrier said the acquisition will enable the company to provide customers not only with direct sales or leasing options but also with after-market services. Customers seeking tank cars and covered hoppers will also benefit from Greenbrier’s expanded geographic footprint as a result of the acquisition.
GBX management explains soft guidance and provides outlook for sequential earnings improvement.
A number of rail equipment lessors and manufacturers have been merging and consolidating in recent months as a way to leverage themselves against marketplace changes brought about by precision scheduled railroading. Meanwhile, industry observers are watching whether railcar utilization grow in 2019.
The Greenbrier Companies (NYSE: GBX) is planning to buy the manufacturing arm of American Railcar Industries as a way to increase its North American presence.
Propelled by international growth and a strong North American market, Greenbrier anticipates one of its strongest years ever in FY2019.
Under the terms of the Saudi joint venture, Greenbrier, the second largest freight railcar manufacturer in the U.S., will provide up to $100 million in new railcars, lift equipment and other terminal investments, and will operate intermodal and other freight terminals.
