July 14, 2017 - 6:30 AM EDT
Print Email Article Font Down Font Up Charts

Genesee & Wyoming Reports Traffic for June 2017 and the Second Quarter of 2017

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for June 2017 and the second quarter of 2017.

G&W’s traffic in June 2017 was 274,588 carloads, an increase of 30,391 carloads, or 12.4%, compared with June 2016. G&W’s same-railroad traffic in June 2017 was 242,763 carloads, a decrease of 1,434 carloads, or 0.6%, compared with June 2016.

G&W’s traffic in the second quarter of 2017 was 810,082 carloads, an increase of 103,166 carloads, or 14.6%, compared with the second quarter of 2016. G&W’s same-railroad traffic in the second quarter of 2017 was 705,940 carloads, a decrease of 976 carloads, or 0.1%, compared with the second quarter of 2016.

The table below sets forth summary total carloads by segment for June 2017 and June 2016.

                 
Segment

June
2017

June
2016

Change

%
Change

North American Operations 135,654 131,338 4,316 3.3%
Australian Operations(1) 45,998 14,199 31,799 NM
U.K./European Operations 92,936 98,660 (5,724) (5.8%)
Total G&W Operations 274,588 244,197 30,391 12.4%
Carloads from New Railroads 31,825
Same-railroad carloads 242,763 244,197 (1,434) (0.6%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

June 2017 Highlights by Segment

  • North American Operations: Traffic in June 2017 was 135,654 carloads, an increase of 3.3% compared with June 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on November 1, 2016, and the Heart of Georgia Railroad, Inc. (HOG), which closed on May 31, 2017. On a same-railroad basis, North American traffic decreased 0.1%.
  • Australian Operations: Traffic in June 2017 was 45,998 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 31.4%, primarily due to increased metallic ores and agricultural products traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 48.9% equity stake in its Australian Operations to Macquarie Infrastructure and Real Assets. Carload information for the Australian Operations is presented on a 100% basis.
  • U.K./European Operations: Traffic in June 2017 was 92,936 carloads, a decrease of 5.8% compared with June 2016, primarily due to decreased intermodal and coal & coke traffic, partially offset by increased minerals & stone traffic.

The table below sets forth North American Operations carload information for June 2017 and June 2016 by commodity group.

                 
North American Operations: June 2017 June 2016 Change % Change
Agricultural Products 17,330 17,113 217 1.3%
Autos & Auto Parts 3,114 2,920 194 6.6%
Chemicals & Plastics 14,359 14,395 (36) (0.3%)
Coal & Coke 17,513 16,827 686 4.1%
Food & Kindred Products 4,911 4,678 233 5.0%
Intermodal 975 - 975 NM
Lumber & Forest Products 11,895 11,749 146 1.2%
Metallic Ores 1,464 1,916 (452) (23.6%)
Metals 11,571 11,446 125 1.1%
Minerals & Stone 20,033 17,905 2,128 11.9%
Petroleum Products 8,479 8,683 (204) (2.3%)
Pulp & Paper 13,495 13,885 (390) (2.8%)
Waste 5,075 4,367 708 16.2%
Other 5,440 5,454 (14) (0.3%)
Total carloads 135,654 131,338 4,316 3.3%
Carloads from New Railroads(1) 4,489
Same-railroad carloads 131,165 131,338 (173) (0.1%)
(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 308 carloads of autos & auto parts traffic, 495 carloads of chemicals & plastics traffic, 975 carloads of intermodal traffic, 392 carloads of lumber & forest products traffic, 1,324 carloads of minerals & stone traffic and 995 carloads from all other commodities.
 

The following highlights relate to North American same-railroad traffic, excluding traffic from P&W, which was acquired on November 1, 2016, and HOG, which was acquired on May 31, 2017.

  • Minerals & stone increased 804 carloads, or 4.5%, primarily due to increased shipments of construction aggregates in G&W’s Central Region.
  • All remaining traffic decreased by a net 977 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for June 2017 and June 2016 by commodity group.

                 
Australian Operations(1): June 2017 June 2016 Change % Change
Agricultural Products 5,172 3,442 1,730 50.3%
Coal & Coke 27,336 - 27,336 NM
Intermodal 5,090 5,128 (38) (0.7%)
Metallic Ores 2,974 592 2,382 NM
Minerals & Stone 5,404 5,008 396 7.9%
Petroleum Products 22 29 (7) (24.1%)
Total carloads 45,998 14,199 31,799 NM
Carloads from New Railroads(2) 27,336
Same-railroad carloads 18,662 14,199 4,463 31.4%
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 27,336 carloads of coal & coke traffic.
 

The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on December 1, 2016.

  • Metallic ores traffic increased 2,382 carloads primarily due to the re-opening of a manganese mine in March 2017 and an iron ore mine in July 2016.
  • Agricultural products traffic increased 1,730 carloads, or 50.3%, primarily due to a stronger harvest in 2017.
  • All remaining traffic increased by a net 351 carloads.

The table below sets forth U.K./European Operations carload information for June 2017 and June 2016 by commodity group.

                 
U.K./European Operations:

June
2017

June
2016

Change

%
Change

Agricultural Products 176 76 100 NM
Coal & Coke 600 3,372 (2,772) (82.2%)
Intermodal 75,559 81,569 (6,010) (7.4%)
Lumber & Forest Products - 45 (45) NM
Minerals & Stone 16,601 13,598 3,003 22.1%
Total carloads 92,936 98,660 (5,724) (5.8%)
  • Intermodal traffic decreased 6,010 carloads, or 7.4%, primarily due to decreased shipments in Continental Europe largely resulting from the elimination of unprofitable routes.
  • Coal & coke traffic decreased 2,772 carloads, or 82.2%, primarily due to decreased shipments in the U.K.
  • Minerals & stone traffic increased 3,003 carloads, or 22.1%, primarily due to increased shipments in Poland.
  • All remaining traffic increased by a net 55 carloads.

Second Quarter of 2017 Traffic

The table below sets forth summary total carloads by segment for the second quarter of 2017 and the second quarter of 2016.

                 
Segment Q2 2017 Q2 2016 Change

%
Change

North American Operations 397,047 386,123 10,924 2.8%
Australian Operations 146,089 44,251 101,838 NM
U.K./European Operations 266,946 276,542 (9,596) (3.5%)
Total G&W Operations 810,082 706,916 103,166 14.6%
Carloads from New Railroads 104,142
Same-railroad carloads 705,940 706,916 (976) (0.1%)

The table below sets forth North American Operations carload information for the second quarter of 2017 and the second quarter of 2016 by commodity group.

                 
North American Operations: Q2 2017 Q2 2016 Change % Change
Agricultural Products 52,953 49,330 3,623 7.3%
Autos & Auto Parts 9,184 8,146 1,038 12.7%
Chemicals & Plastics 44,814 44,875 (61) (0.1%)
Coal & Coke 46,501 46,237 264 0.6%
Food & Kindred Products 14,806 14,448 358 2.5%
Intermodal 2,367 12 2,355 NM
Lumber & Forest Products 35,619 34,561 1,058 3.1%
Metallic Ores 4,249 6,122 (1,873) (30.6%)
Metals 34,695 35,881 (1,186) (3.3%)
Minerals & Stone 56,768 51,882 4,886 9.4%
Petroleum Products 23,912 25,462 (1,550) (6.1%)
Pulp & Paper 39,813 41,128 (1,315) (3.2%)
Waste 14,387 11,520 2,867 24.9%
Other 16,979 16,519 460 2.8%
Total carloads 397,047 386,123 10,924 2.8%
Carloads from New Railroads(1) 11,483
Same-railroad carloads 385,564 386,123 (559) (0.1%)
(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 897 carloads of autos & auto parts traffic, 1,486 carloads of chemicals & plastics traffic, 2,361 carloads of intermodal traffic, 657 carloads of lumber & forest products traffic, 3,506 carloads of minerals & stone traffic and 2,576 carloads from all other commodities.
 

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the second quarter of 2017 and the second quarter of 2016 by commodity group.

                 
Australian Operations(1): Q2 2017 Q2 2016 Change % Change
Agricultural Products 15,375 10,504 4,871 46.4%
Coal & Coke 92,659 - 92,659 NM
Intermodal 15,159 15,320 (161) (1.1%)
Metallic Ores 8,854 2,018 6,836 NM
Minerals & Stone 13,978 16,337 (2,359) (14.4%)
Petroleum Products 64 72 (8) (11.1%)
Total carloads 146,089 44,251 101,838 NM
Carloads from New Railroads(2) 92,659
Same-railroad carloads 53,430 44,251 9,179 20.7%
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 92,659 carloads of coal & coke traffic.
 

The table below sets forth U.K./European Operations carload information for the second quarter of 2017 and the second quarter of 2016 by commodity group.

                 
U.K./European Operations: Q2 2017 Q2 2016 Change

%
Change

Agricultural Products 746 448 298 66.5%
Coal & Coke 3,974 9,250 (5,276) (57.0%)
Intermodal 217,091 228,543 (11,452) (5.0%)
Lumber & Forest Products - 135 (135) NM
Metallic Ores - 93 (93) NM
Minerals & Stone 45,135 38,073 7,062 18.5%
Total carloads 266,946 276,542 (9,596) (3.5%)

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 metric 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, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

About G&W

Genesee & Wyoming owns or leases 122 freight railroads worldwide that are organized in 10 operating regions with approximately 8,000 employees and 3,000 customers.

  • G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 115 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, including in the Hunter Valley coal supply chain, the Northern Territory and South Australia, and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
  • 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, intermodal services connecting Northern European seaports with key industrial regions in Germany, and regional rail services in the Netherlands and Belgium.

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
Senior Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com


Source: Business Wire (July 14, 2017 - 6:30 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice