Genesee & Wyoming Provides Fourth Quarter 2015 Business Update; Reports Traffic for November 2015
Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes
for November 2015.
Fourth Quarter 2015 Business Update
In the fourth quarter of 2015 through November, G&W’s shipments have
been weaker than expected. In G&W’s North American Operations, shipments
of steam coal, agricultural products and metals are below expectations
by approximately 8,000, 3,000 and 3,000 carloads, respectively. In G&W’s
U.K./European Operations, steam coal shipments are approximately 4,000
carloads below expectations. In G&W’s Australian Operations, metallic
ores shipments are approximately 1,000 carloads below expectations
largely due to the recent suspension of rail shipments from a customer
manganese mine. As a result, G&W currently expects its consolidated
earnings per diluted share to be approximately $0.10 below its prior
guidance of $0.90 to $0.95 provided on October 30, 2015.
November 2015 Traffic
G&W’s traffic in November 2015 was 239,558 carloads, an increase of
78,889 carloads, or 49.1%, compared with November 2014. G&W’s
same-railroad traffic in November 2015 was 138,348 carloads, a decrease
of 22,321 carloads, or 13.9%, compared with November 2014.
The table below sets forth summary total carloads by segment for
November 2015 and November 2014.
|
|
November
|
|
November
|
|
|
|
%
|
Segment
|
|
2015
|
|
2014
|
|
Change
|
|
Change
|
North American Operations
|
|
124,220
|
|
142,374
|
|
(18,154)
|
|
(12.8%)
|
Australian Operations
|
|
16,189
|
|
18,295
|
|
(2,106)
|
|
(11.5%)
|
U.K./European Operations(1)
|
|
99,149
|
|
n/a
|
|
n/a
|
|
n/a
|
Total G&W Operations
|
|
239,558
|
|
160,669
|
|
78,889
|
|
49.1%
|
(1) Operations from the Freightliner Group acquired on March 25, 2015
November 2015 Highlights by Segment
-
North American Operations: Traffic in November 2015 was 124,220
carloads, a decrease of 12.8% compared with November 2014. On a
same-railroad basis, traffic declined 20,215 carloads, or 14.2%. The
decrease was primarily due to reduced shipments of coal & coke, metals
and overhead Class 1 traffic, partially offset by increased shipments
of petroleum products.
-
Australian Operations: Traffic in November 2015 was 16,189 carloads, a
decrease of 11.5% compared with November 2014. The decrease was
primarily due to reduced metallic ores shipments from previously
announced closures of customer iron ore mines and a recent suspension
of rail shipments from a customer manganese mine partially offset by
increased shipments of agricultural products and mineral & stone
traffic.
-
U.K./European Operations: Traffic was 99,149 carloads in November
2015. Traffic in November 2015 was led by intermodal traffic in the
U.K. and continental Europe as well as minerals & stone traffic in
Poland and the U.K.
The table below sets forth North American Operations carload information
for November 2015 and November 2014 by commodity group.
|
|
November
|
|
November
|
|
|
|
|
North American Operations:
|
|
2015
|
|
2014
|
|
Change
|
|
% Change
|
Agricultural Products
|
|
16,863
|
|
17,835
|
|
(972)
|
|
(5.4%)
|
Autos & Auto Parts
|
|
1,974
|
|
3,111
|
|
(1,137)
|
|
(36.5%)
|
Chemicals & Plastics
|
|
14,454
|
|
13,229
|
|
1,225
|
|
9.3%
|
Coal & Coke
|
|
17,004
|
|
30,912
|
|
(13,908)
|
|
(45.0%)
|
Food & Kindred Products
|
|
4,753
|
|
4,612
|
|
141
|
|
3.1%
|
Intermodal
|
|
-
|
|
151
|
|
(151)
|
|
(100.0%)
|
Lumber & Forest Products
|
|
10,839
|
|
10,191
|
|
648
|
|
6.4%
|
Metallic Ores
|
|
1,943
|
|
1,702
|
|
241
|
|
14.2%
|
Metals
|
|
9,541
|
|
13,288
|
|
(3,747)
|
|
(28.2%)
|
Minerals & Stone
|
|
15,509
|
|
15,368
|
|
141
|
|
0.9%
|
Petroleum Products
|
|
8,928
|
|
7,327
|
|
1,601
|
|
21.9%
|
Pulp & Paper
|
|
14,306
|
|
13,930
|
|
376
|
|
2.7%
|
Waste
|
|
3,275
|
|
3,145
|
|
130
|
|
4.1%
|
Other
|
|
4,831
|
|
7,573
|
|
(2,742)
|
|
(36.2%)
|
Total carloads
|
|
124,220
|
|
142,374
|
|
(18,154)
|
|
(12.8%)
|
Carloads from New Railroads(1)
|
|
2,061
|
|
|
|
|
|
|
Same-railroad carloads
|
|
122,159
|
|
142,374
|
|
(20,215)
|
|
(14.2%)
|
(1) Total carloads from North American rail operations commenced or
acquired by G&W in the last 12 months, including the Arkansas Midland
Railroad, the Prescott & Northwestern Railroad and the Warren & Saline
River Railroad. These railroads contributed 884 carloads of minerals &
stone traffic, 429 carloads of lumber & forest products traffic, 362
carloads of chemicals & plastics traffic and 386 carloads from all other
commodities.
The following highlights relate to North American same-railroad traffic,
excluding traffic from the Arkansas Midland Railroad, the Prescott &
Northwestern Railroad and the Warren & Saline River Railroad, which were
acquired on January 5, 2015.
-
North American Operations traffic decreased 20,215 carloads, or 14.2%,
primarily due to reduced shipments of coal & coke, metals and overhead
Class 1 traffic, partially offset by increased shipments of petroleum
products.
-
Coal & coke traffic decreased 13,908 carloads, or 45.0%, primarily due
to weaker than expected shipments in G&W’s Midwest, Central, Ohio
Valley and Mountain West regions.
-
Metals traffic decreased 3,794 carloads, or 28.6%, primarily due to
weaker than expected shipments in G&W’s Southern, Ohio Valley, Coastal
and Northeast regions.
-
G&W’s Other commodity group traffic decreased 2,742 carloads, or
36.2%, primarily due to decreased overhead Class 1 shipments.
-
Petroleum products traffic increased 1,568 carloads, or 21.4%,
primarily due to increased shipments in G&W’s Ohio Valley Region.
-
All remaining traffic decreased by a net 1,339 carloads.
The table below sets forth Australian Operations carload information for
November 2015 and November 2014 by commodity group.
|
|
November
|
|
November
|
|
|
|
%
|
Australian Operations:
|
|
2015
|
|
2014
|
|
Change
|
|
Change
|
Agricultural Products
|
|
4,570
|
|
3,068
|
|
1,502
|
|
49.0%
|
Intermodal
|
|
5,153
|
|
5,558
|
|
(405)
|
|
(7.3%)
|
Metallic Ores
|
|
925
|
|
5,129
|
|
(4,204)
|
|
(82.0%)
|
Minerals & Stone
|
|
5,514
|
|
4,514
|
|
1,000
|
|
22.2%
|
Petroleum Products
|
|
27
|
|
26
|
|
1
|
|
3.8%
|
Total carloads
|
|
16,189
|
|
18,295
|
|
(2,106)
|
|
(11.5%)
|
|
|
|
|
|
|
|
|
|
The decrease in Australian Operations traffic was primarily due to
reduced metallic ores shipments from previously announced closures of
customer iron ore mines and a recent suspension of rail shipments from a
customer manganese mine, partially offset by increased shipments of
agricultural products and mineral & stone traffic.
The table below sets forth U.K./European Operations carload information
for November 2015 by commodity group.
|
|
November
|
U.K./European Operations:
|
|
2015
|
Agricultural Products
|
|
37
|
Coal & Coke
|
|
5,447
|
Intermodal
|
|
77,921
|
Minerals & Stone
|
|
14,800
|
Other
|
|
944
|
Total carloads
|
|
99,149
|
Traffic volumes in the U.K./Europe operating segment include operations
from Freightliner. G&W’s existing European operations are not reported
as freight revenues and therefore are not included in this traffic
report. As a result, there is no traffic information provided for the
comparative period in the prior year for this segment.
Fourth Quarter of 2015 Through November Traffic
The table below sets forth summary total carloads by segment for the
fourth quarter of 2015 through November and the fourth quarter of 2014
through November.
|
|
QTD Nov
|
|
QTD Nov
|
|
|
|
%
|
Segment
|
|
2015
|
|
2014
|
|
Change
|
|
Change
|
North American Operations
|
|
261,852
|
|
300,608
|
|
(38,756)
|
|
(12.9%)
|
Australian Operations
|
|
29,988
|
|
34,826
|
|
(4,838)
|
|
(13.9%)
|
U.K./European Operations(1)
|
|
206,002
|
|
n/a
|
|
n/a
|
|
n/a
|
Total G&W Operations
|
|
497,842
|
|
335,434
|
|
162,408
|
|
48.4%
|
(1) Operations from the Freightliner Group acquired on March 25, 2015
The table below sets forth North American Operations carload information
for the fourth quarter of 2015 through November and the fourth quarter
of 2014 through November by commodity group.
|
|
QTD
|
|
QTD
|
|
|
|
|
North American Operations:
|
|
Nov 2015
|
|
Nov 2014
|
|
Change
|
|
% Change
|
Agricultural Products
|
|
35,953
|
|
36,510
|
|
(557)
|
|
(1.5%)
|
Autos & Auto Parts
|
|
3,830
|
|
6,510
|
|
(2,680)
|
|
(41.2%)
|
Chemicals & Plastics
|
|
29,546
|
|
27,848
|
|
1,698
|
|
6.1%
|
Coal & Coke
|
|
36,327
|
|
59,742
|
|
(23,415)
|
|
(39.2%)
|
Food & Kindred Products
|
|
10,189
|
|
10,527
|
|
(338)
|
|
(3.2%)
|
Intermodal
|
|
23
|
|
483
|
|
(460)
|
|
(95.2%)
|
Lumber & Forest Products
|
|
23,101
|
|
22,648
|
|
453
|
|
2.0%
|
Metallic Ores
|
|
3,882
|
|
3,605
|
|
277
|
|
7.7%
|
Metals
|
|
19,481
|
|
30,251
|
|
(10,770)
|
|
(35.6%)
|
Minerals & Stone
|
|
35,221
|
|
35,014
|
|
207
|
|
0.6%
|
Petroleum Products
|
|
17,518
|
|
16,880
|
|
638
|
|
3.8%
|
Pulp & Paper
|
|
28,436
|
|
29,182
|
|
(746)
|
|
(2.6%)
|
Waste
|
|
6,919
|
|
6,792
|
|
127
|
|
1.9%
|
Other
|
|
11,426
|
|
14,616
|
|
(3,190)
|
|
(21.8%)
|
Total carloads
|
|
261,852
|
|
300,608
|
|
(38,756)
|
|
(12.9%)
|
Carloads from New Railroads(1)
|
|
4,485
|
|
|
|
|
|
|
Same-railroad carloads
|
|
257,367
|
|
300,608
|
|
(43,241)
|
|
(14.4%)
|
(1) Total carloads from North American rail operations commenced or
acquired by G&W in the last 12 months, including the Arkansas Midland
Railroad, the Prescott & Northwestern Railroad and the Warren & Saline
River Railroad. These railroads contributed 1,962 carloads of minerals &
stone traffic, 927 carloads of lumber & forest products traffic, 784
carloads of chemicals & plastics traffic and 812 carloads from all other
commodities.
The table below sets forth Australian Operations carload information for
the fourth quarter of 2015 through November and the fourth quarter of
2014 through November by commodity group.
|
|
QTD Nov
|
|
QTD Nov
|
|
|
|
%
|
Australian Operations:
|
|
2015
|
|
2014
|
|
Change
|
|
Change
|
Agricultural Products
|
|
6,196
|
|
4,697
|
|
1,499
|
|
31.9%
|
Intermodal
|
|
10,220
|
|
11,074
|
|
(854)
|
|
(7.7%)
|
Metallic Ores
|
|
2,592
|
|
9,988
|
|
(7,396)
|
|
(74.0%)
|
Minerals & Stone
|
|
10,927
|
|
9,018
|
|
1,909
|
|
21.2%
|
Petroleum Products
|
|
53
|
|
49
|
|
4
|
|
8.2%
|
Total carloads
|
|
29,988
|
|
34,826
|
|
(4,838)
|
|
(13.9%)
|
The table below sets forth U.K./European Operations carload information
for the fourth quarter of 2015 through November by commodity group.
|
|
QTD Nov
|
U.K./European Operations:
|
|
2015
|
Agricultural Products
|
|
77
|
Coal & Coke
|
|
10,627
|
Intermodal
|
|
161,016
|
Minerals & Stone
|
|
32,263
|
Other
|
|
2,019
|
Total carloads
|
|
206,002
|
Other
The term carload represents physical railcars and estimated railcar
equivalents of commodities for which G&W is paid on a metric ton or
other measure to move freight, as well as intermodal units.
Historically, G&W has found that traffic information may be indicative
of freight revenues on its railroads. Freight revenues are revenues for
which G&W is paid on a per car, per container or per ton basis to move
freight. Activities such as railcar switching, port terminal shunting,
traction services and other similar freight-related services are
excluded from our traffic information as the resulting revenues are not
classified as freight revenue. Traffic information may not be indicative
of total operating revenues, operating expenses, income from operations
or net income.
G&W’s three reportable segments are summarized as follows:
-
The North American Operations segment is comprised of nine operating
regions in the U.S. and Canada. This segment represents approximately
57% of G&W’s total operating revenues and approximately 75% of G&W’s
total income from operations.
-
The Australian Operations segment is comprised of G&W’s existing
operations in Australia and the newly-acquired Freightliner Australia
operations. This segment represents approximately 12% of G&W’s total
operating revenues and approximately 14% of G&W’s total income from
operations. Revenues from Freightliner’s Australia operations are not
reported as freight revenues and therefore are not included in this
traffic report.
-
The U.K./European Operations segment is comprised of Freightliner’s
operations in the U.K. and continental Europe and G&W’s existing
European port shunting operations. This segment represents
approximately 31% of G&W’s total operating revenues and approximately
11% of G&W’s total income from operations. G&W’s existing European
port shunting operations are not reported as freight revenues and
therefore are not included in this traffic report. As a result, there
is no traffic information provided for the comparative period in the
prior year for this segment.
About G&W
Genesee & Wyoming owns or leases 120 freight railroads worldwide that
are organized in 11 operating regions with 7,500 employees and more than
2,500 customers.
-
G&W’s nine North American regions serve 41 U.S. states and four
Canadian provinces and include 113 short line and regional freight
railroads with more than 13,000 track-miles.
-
G&W’s Australia Region provides rail freight services in New South
Wales, the Northern Territory and South Australia and operates the
1,400-mile Tarcoola-to-Darwin rail line.
-
G&W’s U.K./Europe Region is led by Freightliner, the U.K.’s largest
rail maritime intermodal operator and second-largest rail freight
company. Operations also include heavy-haul in Poland and Germany and
cross-border intermodal services connecting Northern European seaports
with key industrial regions throughout the continent.
G&W subsidiaries provide rail service at more than 40 major ports in
North America, Australia and Europe and perform contract coal loading
and railcar switching for industrial customers.
For more information, visit gwrr.com.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains forward-looking statements regarding future
events and the future performance of G&W that are based on current
expectations, estimates and projections about our industry, management’s
beliefs and assumptions made by management. Words such as “anticipates,”
“intends,” “plans,” “believes,” “could,” “should,” “seeks,” “expects,”
“will,” “estimates,” “trends,” “update,” “outlook,” variations of these
words and similar expressions are intended to identify these
forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties and
assumptions that are difficult to forecast, including, but not limited
to, those risks noted in our 2014 Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q under “Risk Factors.” Therefore, actual
results may differ materially from those expressed or forecasted in any
such forward-looking statements. Forward-looking statements speak only
as of the date of this press release or as of the date they were made.
G&W does not undertake, and expressly disclaims, any duty to publicly
update any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151211005099/en/ Copyright Business Wire 2015
Source: Business Wire
(December 11, 2015 - 6:30 AM EST)
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