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 October 13, 2015 - 6:30 AM EDT
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Genesee & Wyoming Reports Traffic for September 2015 and the Third Quarter of 2015

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for September 2015 and the third quarter of 2015.

Based on G&W’s significant increase in operations in the U.K. and continental Europe resulting from the acquisition of the London-based Freightliner Group Limited (Freightliner) in March 2015, G&W is now presenting traffic information in three reportable segments: North American Operations, Australian Operations and U.K./European Operations.

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.

September 2015 Traffic

G&W’s traffic in September 2015 was 255,377 carloads, an increase of 91,847 carloads, or 56.2%, compared with September 2014. G&W’s same-railroad traffic in September 2015 was 149,776 carloads, a decrease of 13,754 carloads, or 8.4%, compared with September 2014. 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.

The table below sets forth summary total carloads by segment for September 2015 and September 2014.

  Segment      

September

2015

     

September

2014

      Change      

%

Change

North American Operations 137,665 145,447 (7,782) (5.4%)
Australian Operations 14,797 18,083 (3,286) (18.2%)
U.K./European Operations(1) 102,915 n/a n/a n/a
Total G&W Operations 255,377 163,530 91,847 56.2%
  (1) Operations from the Freightliner Group acquired on March 25, 2015
 

September 2015 Highlights by Segment

  • North American Operations: Traffic in September 2015 was 137,665 carloads, a decrease of 5.4% compared with September 2014. On a same-railroad basis, traffic declined 10,468 carloads, or 7.2%. The decrease was primarily due to reduced shipments of metals, minerals & stone and auto & auto parts.
  • Australian Operations: Traffic in September 2015 was 14,797 carloads, a decrease of 18.2% compared with September 2014. The decrease was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines.
  • U.K./European Operations: Traffic was 102,915 carloads in September 2015. Traffic in September 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 September 2015 and September 2014 by commodity group.

  North American Operations:      

September

2015

     

September

2014

      Change      

%

Change

Agricultural Products 16,626 15,509 1,117 7.2%
Autos & Auto Parts 2,315 3,435 (1,120) (32.6%)
Chemicals & Plastics 14,649 14,489 160 1.1%
Coal & Coke 24,141 24,191 (50) (0.2%)
Food & Kindred Products 5,184 5,078 106 2.1%
Intermodal 60 433 (373) (86.1%)
Lumber & Forest Products 11,777 11,605 172 1.5%
Metallic Ores 1,906 2,006 (100) (5.0%)
Metals 11,217 16,594 (5,377) (32.4%)
Minerals & Stone 18,178 18,605 (427) (2.3%)
Petroleum Products 8,242 8,051 191 2.4%
Pulp & Paper 14,837 15,384 (547) (3.6%)
Waste 3,688 3,883 (195) (5.0%)
Other 4,845 6,184 (1,339) (21.7%)
Total carloads 137,665 145,447 (7,782) (5.4%)
Carloads from New Railroads(1) 2,686
Same-railroad carloads 134,979 145,447 (10,468) (7.2%)
  (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 1,251 carloads of minerals & stone traffic, 560 carloads of lumber & forest products traffic, 401 carloads of chemicals & plastics traffic and 474 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 10,468 carloads, or 7.2%, primarily due to reduced shipments of metals, minerals & stone and auto & auto parts.
  • Metals traffic decreased 5,562 carloads, or 33.5%, primarily due to decreased shipments in G&W’s Southern, Ohio Valley and Northeast regions.
  • Minerals & stone traffic decreased 1,678 carloads, or 9.0%, primarily due to decreased shipments in G&W’s Midwest, Central, Northeast and Ohio Valley regions.
  • Auto & auto parts traffic decreased 1,120 carloads, or 32.6%, primarily due to decreased shipments for export in G&W’s Pacific Region.
  • All remaining traffic decreased by a net 2,108 carloads.

The table below sets forth Australian Operations carload information for September 2015 and September 2014 by commodity group.

  Australian Operations:      

September

2015

     

September

2014

      Change      

%

Change

Agricultural Products 3,068 3,071 (3) (0.1%)
Intermodal 5,156 5,486 (330) (6.0%)
Metallic Ores 1,690 4,693 (3,003) (64.0%)
Minerals & Stone 4,854 4,810 44 0.9%
Petroleum Products 29 23 6 26.1%
Total carloads 14,797 18,083 (3,286) (18.2%)
 

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines.

The table below sets forth U.K./European Operations carload information for September 2015 by commodity group.

  U.K./European Operations:        

September

2015

Agricultural Products 38
Coal & Coke 5,460
Intermodal 81,823
Minerals & Stone 14,511
Other 1,083
Total carloads 102,915
 

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.

Third Quarter of 2015 Traffic

The table below sets forth summary total carloads by segment for the third quarter of 2015 and the third quarter of 2014.

  Segment       Q3 2015       Q3 2014       Change      

%

Change

North American Operations 419,571 462,342 (42,771) (9.3%)
Australian Operations 48,532 57,558 (9,026) (15.7%)
U.K./European Operations(1) 307,453 n/a n/a n/a
Total G&W Operations 775,556 519,900 255,656 49.2%

 

  (1) Operations from the Freightliner Group acquired on March 25, 2015
 

The table below sets forth North American Operations carload information for the third quarter of 2015 and the third quarter of 2014 by commodity group.

  North American Operations:         Q3 2015       Q3 2014       Change       % Change
Agricultural Products 51,010 52,337 (1,327) (2.5%)
Autos & Auto Parts 6,997 9,333 (2,336) (25.0%)
Chemicals & Plastics 43,829 43,292 537 1.2%
Coal & Coke 71,197 87,011 (15,814) (18.2%)
Food & Kindred Products 15,261 15,494 (233) (1.5%)
Intermodal 66 1,216 (1,150) (94.6%)
Lumber & Forest Products 34,770 35,376 (606) (1.7%)
Metallic Ores 6,291 5,638 653 11.6%
Metals 34,507 49,329 (14,822) (30.0%)
Minerals & Stone 56,977 56,280 697 1.2%
Petroleum Products 25,242 25,735 (493) (1.9%)
Pulp & Paper 45,270 45,368 (98) (0.2%)
Waste 11,453 10,839 614 5.7%
Other 16,701 25,094 (8,393) (33.4%)
Total carloads 419,571 462,342 (42,771) (9.3%)
Carloads from New Railroads(1) 8,683
Same-railroad carloads 410,888 462,342 (51,454) (11.1%)
  (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 4,377 carloads of minerals & stone traffic, 1,769 carloads of lumber & forest products traffic, 1,205 carloads of chemicals & plastics traffic and 1,332 carloads from all other commodities.
 

The table below sets forth Australian Operations carload information for the third quarter of 2015 and the third quarter of 2014 by commodity group.

  Australian Operations:       Q3 2015       Q3 2014       Change       % Change
Agricultural Products 11,442 12,219 (777) (6.4%)
Intermodal 16,045 16,235 (190) (1.2%)
Metallic Ores 5,724 14,347 (8,623) (60.1%)
Minerals & Stone 15,224 14,681 543 3.7%
Petroleum Products 97 76 21 27.6%
Total carloads 48,532 57,558 (9,026) (15.7%)
 

The table below sets forth U.K./European Operations carload information for the third quarter of 2015 by commodity group.

  U.K./European Operations:         Q3 2015
Agricultural Products 169
Coal & Coke 17,678
Intermodal 243,161
Minerals & Stone 43,539
Other 2,906
Total carloads 307,453
 

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.

Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com


Source: Business Wire (October 13, 2015 - 6:30 AM EDT)

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