Greenbrier’s net earnings tumble 21.2% in Q3 FY2016

In addition, the railroad transportation equipment manufacturer’s revenues for the third quarter of its fiscal year 2016 fell 8.4 percent from the previous quarter, primarily due to lower volume of sales from acquired rail portfolio and lower wheel volumes

   Greenbrier Companies, Inc. saw net earnings for the third quarter of its fiscal year 2016, which ended May 31, 2016, tumble 21.2 percent from the prior quarter to $35.4 million, according to the company’s most recent unaudited financial statements.
   The Lake Oswego, Ore.-based railroad transportation equipment manufacturer’s diluted earnings per share (EPS) decreased from $1.41 per diluted share in the second quarter of its fiscal year 2016 to $1.12 per diluted share.
   Revenues, which totaled $612.9 million for the quarter, fell 8.4 percent from the prior quarter.
   Broken down into individual segments, the company’s manufacturing segment’s revenues inched up 0.9 percent from the previous quarter to $458.5 million, primarily due to improved efficiencies and a change of mix, which was partially offset by lower deliveries.
   Meanwhile, the leasing and services segment’s revenues tumbled 38.8 percent from the prior quarter to $76 million, which Greenbrier said was mainly a result of lower volumes of sales from acquired railcar portfolio.
   Revenues in the wheels and parts segment fell 13.4 percent from the prior quarter to $78.4 million. The decline was primarily driven by lower wheel and component volumes, Greenbrier said.
   During the quarter, Greenbrier received diversified orders for 1,700 new railcars valued at $150 million, while railcar deliveries totaled 4,300 units.
   Looking ahead, Greenbrier expects full-year diluted EPS for FY2016 to range between $5.70 per diluted share and $5.90 per diluted share. In addition, the company project’s revenues will reach $2.8 billion for the fiscal year and railcar deliveries to total between around 20,000-21,000 units.
   “As North American rail markets adjust to lower railcar loadings and increased rail velocity, we will focus on this core business while growing our earnings base in select international markets where long-term demand for railcars is strong,” Greenbrier Chairman and CEO William A. Furman said. “We achieved an important international milestone by beginning production of 1,200 tank cars for Saudi Railway Company’s October 2015 order.  I am also pleased about the recently announced extension of our partnership in Brazil and strongly believe that global markets will be a key driver of future growth.”