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Genesee & Wyoming Reports Traffic for April 2017

Category:

Monday, May 8, 2017 6:18 pm EDT

Dateline:

DARIEN, Conn.

Public Company Information:

NYSE:
GWR
US3715591059

DARIEN, Conn.--(BUSINESS WIRE)--Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for April 2017.

G&W’s traffic in April 2017 was 260,440 carloads, an increase of 30,468 carloads, or 13.2%, compared with April 2016. G&W’s same-railroad traffic in April 2017 was 225,232 carloads, a decrease of 4,740 carloads, or 2.1%, compared with April 2016.

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

Segment      

April
2017

   

April
2016

    Change    

%
Change

North American Operations 129,087 124,869 4,218 3.4%
Australian Operations(1) 49,521 15,079 34,442 NM
U.K./European Operations 81,832 90,024 (8,192) (9.1%)
Total G&W Operations 260,440 229,972 30,468 13.2%
Carloads from New Railroads 35,208
Same-railroad carloads 225,232 229,972 (4,740) (2.1%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

April 2017 Highlights by Segment

  • North American Operations: Traffic in April 2017 was 129,087 carloads, an increase of 3.4% compared with April 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on November 1, 2016. On a same-railroad basis, North American traffic increased 0.8%, primarily due to increased agricultural products and coal & coke traffic, partially offset by decreased chemicals & plastics traffic.
  • Australian Operations: Traffic in April 2017 was 49,521 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 16.1%, 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 April 2017 was 81,832 carloads, a decrease of 9.1% compared with April 2016, primarily due to decreased intermodal and coal & coke traffic, partially offset by increased minerals & stone traffic. The decrease was primarily due to lower U.K. intermodal traffic resulting from fewer working days in April 2017 compared to April 2016 as well as the planned discontinuation of certain intermodal services in Continental Europe.

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

                 
North American Operations:

April
2017

April
2016

Change

%
Change

Agricultural Products 17,385 15,440 1,945 12.6%
Autos & Auto Parts 3,123 2,516 607 24.1%
Chemicals & Plastics 14,922 15,709 (787) (5.0%)
Coal & Coke 16,362 14,794 1,568 10.6%
Food & Kindred Products 4,854 4,901 (47) (1.0%)
Intermodal 695 12 683 NM
Lumber & Forest Products 11,816 11,209 607 5.4%
Metallic Ores 1,370 2,093 (723) (34.5%)
Metals 11,371 11,413 (42) (0.4%)
Minerals & Stone 16,852 16,976 (124) (0.7%)
Petroleum Products 7,543 7,720 (177) (2.3%)
Pulp & Paper 12,808 13,577 (769) (5.7%)
Waste 4,138 3,038 1,100 36.2%
Other 5,848 5,471 377 6.9%
Total carloads 129,087 124,869 4,218 3.4%
Carloads from New Railroads(1) 3,193
Same-railroad carloads 125,894 124,869 1,025 0.8%

(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 309 carloads of autos & auto parts traffic, 472 carloads of chemicals & plastics traffic, 689 carloads of intermodal traffic, 231 carloads of metals traffic, 879 carloads of minerals & stone traffic and 613 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.

  • Agricultural products traffic increased 1,839 carloads, or 11.9%, primarily due to increased grain shipments in G&W’s Mountain West, Central and Pacific regions.
  • Coal & coke traffic increased 1,568 carloads, or 10.6%, primarily due to increased shipments of utility coal in G&W’s Midwest Region, partially offset by decreased shipments in G&W’s Central Region.
  • Chemicals & plastics decreased 1,259 carloads, or 8.0%, primarily due to decreased shipments of fertilizers and ethanol in G&W’s Midwest Region.
  • All remaining traffic decreased by a net 1,123 carloads.

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

                 
Australian Operations (1) :

April
2017

April
2016

Change

%
Change

Agricultural Products 4,823 3,898 925 23.7%
Coal & Coke 32,015 - 32,015 NM
Intermodal 4,535 4,867 (332) (6.8%)
Metallic Ores 2,658 720 1,938 NM
Minerals & Stone 5,472 5,571 (99) (1.8%)
Petroleum Products 18 23 (5) (21.7%)
Total carloads 49,521 15,079 34,442 NM
Carloads from New Railroads(2) 32,015
Same-railroad carloads 17,506 15,079 2,427 16.1%
(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 32,015 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 1,938 carloads primarily due to the re-opening of a manganese mine in March 2017 and the re-opening of an iron ore mine in July 2016.
  • Agricultural products traffic increased 925 carloads, or 23.7%, primarily due to a stronger harvest in 2017.
  • All remaining traffic decreased by a net 436 carloads.

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

                 
U.K./European Operations:

April
2017

April
2016

Change

%
Change

Agricultural Products 313 222 91 41.0%
Coal & Coke 1,924 3,009 (1,085) (36.1%)
Intermodal 66,465 74,429 (7,964) (10.7%)
Lumber & Forest Products - 90 (90) NM
Minerals & Stone 13,130 12,274 856 7.0%
Total carloads 81,832 90,024 (8,192) (9.1%)
 
  • Intermodal traffic decreased by 7,964 carloads, or 10.7%, due to decreased shipments in the U.K. largely resulting from fewer working days in April 2017 versus April 2016 and in Continental Europe largely resulting from the elimination of unprofitable routes.
  • Coal & coke traffic decreased 1,085 carloads, or 36.1%, primarily due to decreased shipments in the U.K.
  • Minerals & stone increased 856 carloads, or 7.0%, primarily due to increased shipments in Poland, partially offset by decreased shipments in the U.K.

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, including operating 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.

Contact:

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

NYSE: GWR