American Railcar Industries

Railcar manufacturer Greenbrier will invest $16 million in an American Railcar Industries facility that produces tank cars.

Greenbrier said the acquisition will enable the company to provide customers not only with direct sales or leasing options but also with after-market services. Customers seeking tank cars and covered hoppers will also benefit from Greenbrier’s expanded geographic footprint as a result of the acquisition.

GBX management explains soft guidance and provides outlook for sequential earnings improvement.

A number of rail equipment lessors and manufacturers have been merging and consolidating in recent months as a way to leverage themselves against marketplace changes brought about by precision scheduled railroading. Meanwhile, industry observers are watching whether railcar utilization grow in 2019.