April 17, 2018 - 6:30 AM EDT
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Genesee & Wyoming Reports Traffic for March 2018

DARIEN, Conn.

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for March 2018 and the first quarter of 2018.

G&W’s traffic in March 2018 was 279,912 carloads, a decrease of 10,840 carloads, or 3.7%, compared with March 2017. G&W’s same-railroad traffic in March 2018 was 279,280 carloads, a decrease of 11,472 carloads, or 3.9%, compared with March 2017.

G&W’s traffic in the first quarter of 2018 was 811,313 carloads, a decrease of 9,935 carloads, or 1.2%, compared with the first quarter of 2017. G&W’s same-railroad traffic in the first quarter of 2018 was 809,743 carloads, a decrease of 11,505 carloads, or 1.4%, compared with the first quarter of 2017. First quarter carloads in North America included lower than expected coal traffic in G&W’s Midwest Region as well as the adverse impact of overall rail network congestion.

The table below sets forth summary total carloads by segment.

                 
Segment

March
2018

March
2017

Change

%
Change

North American Operations 142,470 137,977 4,493 3.3%
Australian Operations(1) 50,901 55,388 (4,487) (8.1%)
U.K./European Operations 86,541 97,387 (10,846) (11.1%)
Total G&W Operations 279,912 290,752 (10,840) (3.7%)
Carloads from New Railroads 632
Same-railroad carloads 279,280 290,752 (11,472) (3.9%)
(1) 51.1% owned by G&W.
 

Highlights by Segment

  • North American Operations: Traffic in March 2018 was 142,470 carloads, an increase of 3.3% compared with March 2017, including carloads from the Heart of Georgia Railroad, Inc. (HOG), which was acquired on May 31, 2017. On a same-railroad basis, North American traffic increased 2.8%, primarily due to increased other commodity group traffic and pulp & paper traffic.
  • Australian Operations: Traffic in March 2018 was 50,901 carloads, a decrease of 8.1% compared with March 2017, primarily due to decreased coal & coke and metallic ores traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
  • U.K./European Operations: Traffic in March 2018 was 86,541 carloads, a decrease of 11.1% compared with March 2017, primarily due to decreased intermodal traffic in the U.K. and Continental Europe and decreased coal & coke traffic in Poland and the U.K., partially offset by increased minerals & stone traffic in the U.K. and Poland.

The table below sets forth North American Operations carload information by commodity group.

                 
North American Operations:

March
2018

March
2017

Change % Change
Agricultural Products 18,896 19,653 (757) (3.9%)
Autos & Auto Parts 3,156 3,514 (358) (10.2%)
Chemicals & Plastics 15,319 16,166 (847) (5.2%)
Coal & Coke 19,572 19,602 (30) (0.2%)
Food & Kindred Products 5,313 5,383 (70) (1.3%)
Intermodal 1,181 628 553 88.1%
Lumber & Forest Products 12,672 12,219 453 3.7%
Metallic Ores 1,459 1,848 (389) (21.0%)
Metals 12,667 12,559 108 0.9%
Minerals & Stone 17,550 16,811 739 4.4%
Petroleum Products 8,199 8,079 120 1.5%
Pulp & Paper 14,442 12,757 1,685 13.2%
Waste 4,277 3,596 681 18.9%
Other 7,767 5,162 2,605 50.5%
Total carloads 142,470 137,977 4,493 3.3%
Carloads from New Railroads(1) 632
Same-railroad carloads 141,838 137,977 3,861 2.8%
(1) Total carloads from HOG, which contributed 337 carloads of lumber & forest products traffic and 295 carloads from all other commodities.
 

The following highlights relate to North American same-railroad traffic, excluding traffic from HOG, which was acquired on May 31, 2017.

  • Other commodity group traffic increased 2,470 carloads, or 47.8%, primarily due to increased Class I overhead traffic in most G&W regions.
  • Pulp & paper traffic increased 1,685 carloads, or 13.2%, primarily due to increased shipments in all of G&W’s regions, with the largest variance in the Southern Region which experienced a customer plant outage in March 2017 that negatively impacted shipments.
  • All remaining traffic decreased by a net 294 carloads.

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

                 
Australian Operations(1):

March
2018

March
2017

Change

%
Change

Agricultural Products 4,829 5,195 (366) (7.0%)
Coal & Coke 34,508 36,420 (1,912) (5.2%)
Intermodal 4,463 4,820 (357) (7.4%)
Metallic Ores 1,866 3,136 (1,270) (40.5%)
Minerals & Stone 5,218 5,787 (569) (9.8%)
Petroleum Products 17 30 (13) (43.3%)
Total carloads 50,901 55,388 (4,487) (8.1%)
(1) 51.1% owned by G&W.
 
  • Coal & coke traffic decreased 1,912 carloads, or 5.2%, in part due to weather-related shipping disruptions.
  • Metallic ores traffic decreased 1,270 carloads, or 40.5%, primarily due to the planned, temporary shutdown of an iron ore mine in October 2017.
  • All remaining traffic decreased by a net 1,305 carloads.

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

                 
U.K./European Operations:

March
2018

March
2017

Change

%
Change

Agricultural Products 318 463 (145) (31.3%)
Coal & Coke 1,843 3,096 (1,253) (40.5%)
Intermodal 67,590 80,115 (12,525) (15.6%)
Minerals & Stone 16,790 13,713 3,077 22.4%
Total carloads 86,541 97,387 (10,846) (11.1%)
 
  • Intermodal traffic decreased 12,525 carloads, or 15.6%, primarily due to decreased shipments in the U.K. as a result of weather related service cancellations and in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS.
  • Coal & coke traffic decreased 1,253 carloads, or 40.5%, primarily due to decreased shipments in Poland and the U.K.
  • Minerals & stone traffic increased 3,077 carloads, or 22.4%, primarily due to increased shipments in the U.K. and Poland.
  • All remaining traffic decreased by a net 145 carloads.

First Quarter of 2018 Traffic

The table below sets forth summary total carloads by segment.

                 
Segment Q1 2018 Q1 2017 Change

%
Change

North American Operations 406,013 403,016 2,997 0.7%
Australian Operations(1) 143,515 149,416 (5,901) (3.9%)
U.K./European Operations 261,785 268,816 (7,031) (2.6%)
Total G&W Operations 811,313 821,248 (9,935) (1.2%)
Carloads from New Railroads 1,570
Same-railroad carloads 809,743 821,248 (11,505) (1.4%)
(1) 51.1% owned by G&W.
 

The table below sets forth North American Operations carload information by commodity group.

                 
North American Operations: Q1 2018 Q1 2017 Change % Change
Agricultural Products 53,764 57,251 (3,487) (6.1%)
Autos & Auto Parts 8,716 8,793 (77) (0.9%)
Chemicals & Plastics 43,342 46,008 (2,666) (5.8%)
Coal & Coke 61,966 63,299 (1,333) (2.1%)
Food & Kindred Products 15,183 14,870 313 2.1%
Intermodal 3,084 1,801 1,283 71.2%
Lumber & Forest Products 36,250 33,555 2,695 8.0%
Metallic Ores 4,396 4,924 (528) (10.7%)
Metals 35,238 35,798 (560) (1.6%)
Minerals & Stone 47,696 47,045 651 1.4%
Petroleum Products 25,660 25,137 523 2.1%
Pulp & Paper 41,357 38,774 2,583 6.7%
Waste 11,981 10,744 1,237 11.5%
Other 17,380 15,017 2,363 15.7%
Total carloads 406,013 403,016 2,997 0.7%
Carloads from New Railroads(1) 1,570
Same-railroad carloads 404,443 403,016 1,427 0.4%
(1) Total carloads from HOG, which contributed 1,033 carloads of lumber & forest products traffic and 537 carloads from all other commodities.
 

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

                 
Australian Operations(1): Q1 2018 Q1 2017 Change

%
Change

Agricultural Products 13,112 15,266 (2,154) (14.1%)
Coal & Coke 96,856 97,684 (828) (0.8%)
Intermodal 12,754 13,578 (824) (6.1%)
Metallic Ores 4,871 6,906 (2,035) (29.5%)
Minerals & Stone 15,863 15,928 (65) (0.4%)
Petroleum Products 59 54 5 9.3%
Total carloads 143,515 149,416 (5,901) (3.9%)
(1) 51.1% owned by G&W.
 

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

                 
U.K./European Operations: Q1 2018 Q1 2017 Change

%
Change

Agricultural Products 966 1,513 (547) (36.2%)
Coal & Coke 5,895 10,561 (4,666) (44.2%)
Intermodal 210,780 223,813 (13,033) (5.8%)
Minerals & Stone 44,144 32,929 11,215 34.1%
Total carloads 261,785 268,816 (7,031) (2.6%)
 

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

G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

  • G&W’s seven 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 serves New South Wales, 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 UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

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


Source: Business Wire (April 17, 2018 - 6:30 AM EDT)

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