Genesee & Wyoming Reports Traffic for February 2017

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.