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Genesee & Wyoming Reports Traffic for February 2017

Category:

Monday, March 13, 2017 4:30 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 February 2017.

G&W’s traffic in February 2017 was 252,228 carloads, an increase of 27,572 carloads, or 12.3%, compared with February 2016. G&W’s same-railroad traffic in February 2017 was 223,365 carloads, a decrease of 1,291 carloads, or 0.6%, compared with February 2016.

G&W’s traffic in the first quarter of 2017 through February was 530,496 carloads, an increase of 87,409 carloads, or 19.7%, compared with the first quarter of 2016 through February. G&W’s same-railroad traffic in the first quarter of 2017 through February was 464,166 carloads, an increase of 21,079 carloads, or 4.8%, compared with the first quarter of 2016 through February.

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

Segment      

February
2017

   

February
2016

    Change    

%
Change

North American Operations 126,488 125,476 1,012 0.8%
Australian Operations(1) 42,051 15,491 26,560 NM
U.K./European Operations 83,689 83,689 - -
Total G&W Operations 252,228 224,656 27,572 12.3%
Carloads from New Railroads 28,863
Same-railroad carloads 223,365 224,656 (1,291) (0.6%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

February 2017 Highlights by Segment

  • North American Operations: Traffic in February 2017 was 126,488 carloads, an increase of 0.8% compared with February 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 decreased 1.0%, primarily due to decreased agricultural products and pulp & paper traffic, partially offset by increased coal & coke traffic.
  • Australian Operations: Traffic in February 2017 was 42,051 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic decreased 0.2% primarily due to decreased minerals & stone traffic, partially offset by increased metallic ores 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 February 2017 was 83,689 carloads, or flat compared with February 2016, primarily due to increased minerals & stone traffic, partially offset by decreased intermodal traffic.

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

North American Operations:      

February
2017

   

February
2016

    Change     % Change
Agricultural Products 17,704 18,747 (1,043) (5.6%)
Autos & Auto Parts 2,522 2,192 330 15.1%
Chemicals & Plastics 14,007 14,475 (468) (3.2%)
Coal & Coke 21,290 16,395 4,895 29.9%
Food & Kindred Products 4,511 5,074 (563) (11.1%)
Intermodal 664 - 664 NM
Lumber & Forest Products 10,654 11,212 (558) (5.0%)
Metallic Ores 1,335 2,034 (699) (34.4%)
Metals 11,511 11,986 (475) (4.0%)
Minerals & Stone 14,759 14,087 672 4.8%
Petroleum Products 7,847 8,565 (718) (8.4%)
Pulp & Paper 12,046 13,019 (973) (7.5%)
Waste 3,263 2,574 689 26.8%
Other 4,375 5,116 (741) (14.5%)
Total carloads 126,488 125,476 1,012 0.8%
Carloads from New Railroads(1) 2,267
Same-railroad carloads 124,221 125,476 (1,255) (1.0%)
(1) Total carloads from P&W, which was acquired on November 1, 2016, and contributed 340 carloads of autos & auto parts traffic, 413 carloads of chemicals & plastics traffic, 664 carloads of intermodal traffic, 159 carloads of metals traffic, 239 carloads of minerals & stone traffic and 452 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 decreased 1,140 carloads, or 6.1%, primarily due to decreased shipments in G&W’s Midwest and Coastal regions, partially offset by increased shipments in G&W’s Mountain West and Central regions.
  • Pulp & paper traffic decreased 1,028 carloads, or 7.9%, primarily due to decreased shipments in G&W’s Southern Region resulting from a temporary shutdown of a customer facility following an incident in late January 2017. The facility is currently expected to restart production in the second quarter of 2017.
  • Coal & coke traffic increased 4,895 carloads, or 29.9%, primarily due to increased shipments of utility coal in G&W’s Midwest Region.
  • All remaining traffic decreased by a net 3,982 carloads.
  • Note that severe weather and flooding in the western U.S. negatively affected shipment volumes in G&W’s Pacific Region in February 2017 and into March 2017.

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

Australian Operations (1) :      

February
2017

   

February
2016

    Change     % Change
Agricultural Products 4,869 4,951 (82) (1.7%)
Coal & Coke 26,596 - 26,596 NM
Intermodal 4,298 4,531 (233) (5.1%)
Metallic Ores 1,872 784 1,088 NM
Minerals & Stone 4,404 5,200 (796) (15.3%)
Petroleum Products 12 25 (13) (52.0%)
Total carloads 42,051 15,491 26,560 NM
Carloads from New Railroads(2) 26,596
Same-railroad carloads 15,455 15,491 (36) (0.2%)
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Carloads from GRail, which was acquired on December 1, 2016, and contributed 26,596 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.

  • Minerals & stone traffic decreased 796 carloads, or 15.3%, primarily due to decreased gypsum shipments.
  • Metallic ores traffic increased 1,088 carloads primarily due to the short-term re-opening of an iron ore mine.
  • All remaining traffic decreased by a net 328 carloads.

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

U.K./European Operations:      

February
2017

   

February
2016

    Change    

%
Change

Agricultural Products 488 186 302 NM
Coal & Coke 3,374 3,379 (5) (0.1%)
Intermodal 68,649 69,507 (858) (1.2%)
Lumber & Forest Products - 90 (90) NM
Minerals & Stone 11,178 10,527 651 6.2%
Total carloads 83,689 83,689 - -
 
  • Minerals & stone traffic increased 651 carloads, or 6.2%, primarily due to increased shipments in Poland.
  • Intermodal traffic decreased by 858 carloads, or 1.2%, split approximately evenly between the U.K. and continental Europe.
  • All remaining traffic increased by a net 207 carloads.

First Quarter of 2017 Through February Traffic

The table below sets forth summary total carloads by segment for the first quarter of 2017 through February and the first quarter of 2016 through February.

Segment      

QTD Feb
2017

   

QTD Feb
2016

    Change    

%
Change

North American Operations 265,039 249,892 15,147 6.1%
Australian Operations 94,028 30,586 63,442 NM
U.K./European Operations 171,429 162,609 8,820 5.4%
Total G&W Operations 530,496 443,087 87,409 19.7%
Carloads from New Railroads 66,330
Same-railroad carloads 464,166 443,087 21,079 4.8%
 

February and the first quarter of 2016 through February by commodity group.

North American Operations:      

QTD Feb
2017

   

QTD Feb
2016

    Change     % Change
Agricultural Products 37,598 36,361 1,237 3.4%
Autos & Auto Parts 5,279 3,992 1,287 32.2%
Chemicals & Plastics 29,842 28,614 1,228 4.3%
Coal & Coke 43,697 34,794 8,903 25.6%
Food & Kindred Products 9,487 9,784 (297) (3.0%)
Intermodal 1,173 - 1,173 NM
Lumber & Forest Products 21,336 22,052 (716) (3.2%)
Metallic Ores 3,076 4,122 (1,046) (25.4%)
Metals 23,239 22,862 377 1.6%
Minerals & Stone 30,234 27,002 3,232 12.0%
Petroleum Products 17,058 17,465 (407) (2.3%)
Pulp & Paper 26,017 27,726 (1,709) (6.2%)
Waste 7,148 5,071 2,077 41.0%
Other 9,855 10,047 (192) (1.9%)
Total carloads 265,039 249,892 15,147 6.1%
Carloads from New Railroads(1) 5,066
Same-railroad carloads 259,973 249,892 10,081 4.0%
(1) Total carloads from P&W, which was acquired on November 1, 2016, and contributed 768 carloads of autos & auto parts traffic, 809 carloads of chemicals & plastics traffic, 1,173 carloads of intermodal traffic, 672 carloads of minerals & stone traffic, 405 carloads of metals traffic and 1,239 carloads from all other commodities.
 

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the first quarter of 2017 through February and the first quarter of 2016 through February by commodity group.

Australian Operations (1) :      

QTD Feb
2017

   

QTD Feb
2016

    Change     % Change
Agricultural Products 10,071 8,994 1,077 12.0%
Coal & Coke 61,264 0 61,264 NM
Intermodal 8,758 8,940 (182) (2.0%)
Metallic Ores 3,770 1,600 2,170 NM
Minerals & Stone 10,141 11,016 (875) (7.9%)
Petroleum Products 24 36 (12) (33.3%)
Total carloads 94,028 30,586 63,442 NM
Carloads from New Railroads(2) 61,264
Same-railroad carloads 32,764 30,586 2,178 7.1%
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Carloads from GRail, which was acquired on December 1, 2016, and contributed 61,264 carloads of coal & coke traffic.
 

The table below sets forth U.K./European Operations carload information for the first quarter of 2017 through February and the first quarter of 2016 through February by commodity group.

U.K./European Operations:      

QTD Feb
2017

   

QTD Feb
2016

    Change    

%
Change

Agricultural Products 1,050 251 799 NM
Coal & Coke 7,465 7,412 53 0.7%
Intermodal 143,698 136,752 6,946 5.1%
Lumber & Forest Products - 135 (135) NM
Minerals & Stone 19,216 18,059 1,157 6.4%
Total carloads 171,429 162,609 8,820 5.4%
 

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 7,300 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 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.

Contact:

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

NYSE: GWR