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Genesee & Wyoming Reports Traffic for December 2016 and the Fourth Quarter of 2016

Category:

Friday, January 13, 2017 6:30 am EST

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 December 2016 and the fourth quarter of 2016.

G&W’s traffic in December 2016 was 270,543 carloads, an increase of 56,233 carloads, or 26.2%, compared with December 2015. G&W’s same-railroad traffic in December 2016 was 232,144 carloads, an increase of 17,834 carloads, or 8.3%, compared with December 2015.

G&W’s traffic in the fourth quarter of 2016 was 766,550 carloads, an increase of 56,417 carloads, or 7.9%, compared with the fourth quarter of 2015. G&W’s same-railroad traffic in the fourth quarter of 2016 was 724,958 carloads, an increase of 14,825 carloads, or 2.1%, compared with the fourth quarter of 2015.

The table below sets forth summary total carloads by segment for December 2016 and December 2015.

                 
Segment

December
2016

December
2015

Change

%
Change

North American Operations 131,118 126,376 4,742 3.8%
Australian Operations(1) 53,200 16,257 36,943 NM
U.K./European Operations 86,225 71,677 14,548 20.3%
Total G&W Operations 270,543 214,310 56,233 26.2%
Carloads from New Railroads 38,399
Same-railroad carloads 232,144 214,310 17,834 8.3%
(1) 51% owned by G&W as of December 1, 2016.
 

December 2016 Highlights by Segment

  • North American Operations: Traffic in December 2016 was 131,118 carloads, an increase of 3.8% compared with December 2015, 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 1.2% primarily due to increased coal & coke and metals traffic, partially offset by decreased minerals & stone traffic.
  • Australian Operations: Traffic in December 2016 was 53,200 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 10.7% primarily due to increased agricultural products and metallic ores traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 49% 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 December 2016 was 86,225 carloads, an increase of 20.3% compared with December 2015 due to increased intermodal and minerals & stone traffic, partially offset by decreased coal & coke traffic. Please note an adjustment was recorded in December 2015 to reflect a reduction of approximately 7,000 carloads for the difference between U.K./European Operations’ estimated versus actual traffic for the period from March 25, 2015 (the Freightliner acquisition date) through December 31, 2015.

The table below sets forth North American Operations carload information for December 2016 and December 2015 by commodity group.

                 
North American Operations:

December
2016

December
2015

Change

% Change

Agricultural Products 18,408 17,510 898 5.1%
Autos & Auto Parts 2,902 2,238 664 29.7%
Chemicals & Plastics 14,170 13,947 223 1.6%
Coal & Coke 20,666 16,677 3,989 23.9%
Food & Kindred Products 5,077 5,081 (4) (0.1%)
Intermodal 652 6 646 NM
Lumber & Forest Products 10,821 11,583 (762) (6.6%)
Metallic Ores 1,591 2,160 (569) (26.3%)
Metals 12,089 10,202 1,887 18.5%
Minerals & Stone 13,780 14,503 (723) (5.0%)
Petroleum Products 8,339 9,087 (748) (8.2%)
Pulp & Paper 13,865 14,770 (905) (6.1%)
Waste 3,606 3,038 568 18.7%
Other 5,152 5,574 (422) (7.6%)
Total carloads 131,118 126,376 4,742 3.8%
Carloads from New Railroads(1) 3,196
Same-railroad carloads 127,922 126,376 1,546 1.2%
(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 778 carloads of minerals & stone traffic, 652 carloads of intermodal traffic, 456 carloads of autos & auto parts traffic, 418 carloads of chemicals & plastics traffic, 194 carloads of metals traffic and 698 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.

  • Coal & Coke traffic increased 3,989 carloads, or 23.9%, primarily due to increased shipments of utility coal in G&W’s Midwest and Central regions.
  • Metals traffic increased 1,693 carloads, or 16.6%, primarily due to increased shipments in G&W’s Northeast Region.
  • Minerals & stone traffic decreased 1,501 carloads, or 10.3%, primarily due to decreased shipments of construction aggregates in G&W’s Coastal, Central, Midwest and Northeast regions.
  • All remaining traffic decreased by a net 2,635 carloads.

The table below sets forth carload information for G&W’s 51% owned Australian Operations for December 2016 and December 2015 by commodity group.

                 

Australian Operations: (1)

December
2016

December
2015

Change

% Change

Agricultural Products 5,625 4,484 1,141 25.4%
Coal & Coke 35,203 - 35,203 NM
Intermodal 5,200 5,388 (188) (3.5%)
Metallic Ores 1,796 716 1,080 NM
Minerals & Stone 5,359 5,645 (286) (5.1%)
Petroleum Products 17 24 (7) (29.2%)
Total carloads 53,200 16,257 36,943 NM
Carloads from New Railroads(2) 35,203
Same-railroad carloads 17,997 16,257 1,740 10.7%
(1) 51% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 35,203 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.

  • Agricultural products traffic increased 1,141 carloads, or 25.4%, primarily due to the start of the 2016/2017 harvest.
  • Metallic ores traffic increased 1,080 carloads, or 150.8%, primarily due to the short-term re-opening of an iron ore mine in 2016.
  • All remaining traffic decreased by a net 481 carloads.

The table below sets forth U.K./European Operations carload information for December 2016 and December 2015 by commodity group.

                 
U.K./European Operations:

December
2016

December
2015

Change

%
Change

Agricultural Products 501 157 344 NM
Coal & Coke 4,747 7,084 (2,337) (33.0%)
Intermodal 69,379 54,628 14,751 27.0%
Minerals & Stone 11,598 9,808 1,790 18.3%
Total carloads 86,225 71,677 14,548 20.3%
 
  • Intermodal traffic increased by 14,751 carloads, or 27.0%, primarily in the U.K. and continental Europe. Please note an adjustment was recorded in December 2015 to reflect a reduction of approximately 8,000 carloads for the difference between U.K./European Operations’ estimated versus actual intermodal traffic for the period from March 25, 2015 through December 31, 2015.
  • Minerals & stone traffic increased by 1,790 carloads, or 18.3%, primarily in Poland.
  • Coal & coke traffic decreased 2,337 carloads, or 33.0%. Please note an adjustment was recorded in December 2015 to reflect an increase of approximately 1,000 carloads for the difference between U.K./European Operations’ estimated versus actual coal traffic for the period from March 25, 2015 through December 31, 2015.

Fourth Quarter of 2016 Traffic

The table below sets forth summary total carloads by segment for the fourth quarter of 2016 and the fourth quarter of 2015.

                 
Segment Q4 2016 Q4 2015 Change

%
Change

North American Operations 402,939 388,228 14,711 3.8%
Australian Operations(1) 82,389 46,245 36,144 78.2%
U.K./European Operations 281,222 275,660 5,562 2.0%
Total G&W Operations 766,550 710,133 56,417 7.9%
Carloads from New Railroads 41,592
Same-railroad carloads 724,958 710,133 14,825 2.1%
(1) 51% owned by G&W as of December 1, 2016.
 

The table below sets forth North American Operations carload information for the fourth quarter of 2016 and the fourth quarter of 2015 by commodity group.

                 
North American Operations: Q4 2016 Q4 2015 Change % Change
Agricultural Products 57,669 53,463 4,206 7.9%
Autos & Auto Parts 8,321 6,068 2,253 37.1%
Chemicals & Plastics 43,680 43,493 187 0.4%
Coal & Coke 63,058 53,004 10,054 19.0%
Food & Kindred Products 15,905 15,270 635 4.2%
Intermodal 1,246 29 1,217 NM
Lumber & Forest Products 33,450 34,684 (1,234) (3.6%)
Metallic Ores 4,814 6,042 (1,228) (20.3%)
Metals 34,134 29,683 4,451 15.0%
Minerals & Stone 48,756 49,724 (968) (1.9%)
Petroleum Products 26,308 26,605 (297) (1.1%)
Pulp & Paper 39,578 43,206 (3,628) (8.4%)
Waste 11,696 9,957 1,739 17.5%
Other 14,324 17,000 (2,676) (15.7%)
Total carloads 402,939 388,228 14,711 3.8%
Carloads from New Railroads(1) 6,389
Same-railroad carloads 396,550 388,228 8,322 2.1%
(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 2,052 carloads of minerals & stone traffic, 1,210 carloads of intermodal traffic, 752 carloads of autos & auto parts traffic, 726 carloads of chemicals & plastics traffic, 305 carloads of metals traffic and 1,344 carloads from all other commodities. North American Operations carload information for November 2016, inclusive of P&W is included in an appendix to this press release.
 

The table below sets forth carload information for G&W’s 51% owned Australian Operations for the fourth quarter of 2016 and the fourth quarter of 2015 by commodity group.

                 

Australian Operations: (1)

Q4 2016 Q4 2015 Change % Change
Agricultural Products 10,661 10,680 (19) (0.2%)
Coal & Coke 35,203 - 35,203 NM
Intermodal 15,328 15,608 (280) (1.8%)
Metallic Ores 4,625 3,308 1,317 39.8%
Minerals & Stone 16,508 16,572 (64) (0.4%)
Petroleum Products 64 77 (13) (16.9%)
Total carloads 82,389 46,245 36,144 78.2%
Carloads from New Railroads(2) 35,203
Same-railroad carloads 47,186 46,245 941 2.0%
(1) 51% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 35,203 carloads of coal & coke traffic.
 

The table below sets forth U.K./European Operations carload information for the fourth quarter of 2016 and the fourth quarter of 2015 by commodity group.

                 
U.K./European Operations: Q4 2016 Q4 2015 Change

%
Change

Agricultural Products 1,058 234 824 NM
Coal & Coke 13,528 17,711 (4,183) (23.6%)
Intermodal 225,090 215,644 9,446 4.4%
Lumber & Forest Products 158 - 158 NM
Metallic Ores 108 - 108 NM
Minerals & Stone 41,280 42,071 (791) (1.9%)
Total carloads 281,222 275,660 5,562 2.0%
 

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, income from operations 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 7,400 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.
  • 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 freight operations in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

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.

Appendix A

North American Operations carload information for November 2016, inclusive of P&W

                 
North American Operations:

November
2016

November
2015

Change % Change
Agricultural Products 19,171 16,863 2,308 13.7%
Autos & Auto Parts 2,735 1,974 761 38.6%
Chemicals & Plastics 14,882 14,454 428 3.0%
Coal & Coke 21,655 17,004 4,651 27.4%
Food & Kindred Products 5,167 4,753 414 8.7%
Intermodal 558 - 558 NM
Lumber & Forest Products 11,161 10,839 322 3.0%
Metallic Ores 1,632 1,943 (311) (16.0%)
Metals 11,375 9,541 1,834 19.2%
Minerals & Stone 17,556 15,509 2,047 13.2%
Petroleum Products 9,382 8,928 454 5.1%
Pulp & Paper 13,070 14,306 (1,236) (8.6%)
Waste 4,058 3,275 783 23.9%
Other 4,480 4,831 (351) (7.3%)
Total carloads 136,882 124,220 12,662 10.2%
Carloads from New Railroads(1) 3,193
Same-railroad carloads 133,689 124,220 9,469 7.6%
(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 1,274 carloads of minerals & stone traffic, 558 carloads of intermodal traffic, 296 carloads of autos & auto parts traffic, 308 carloads of chemicals & plastics traffic, 111 carloads of metals traffic and 646 carloads from all other commodities.
 

Contact:

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

NYSE: GWR