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Genesee & Wyoming Reports Traffic for May 2017

Category:

Monday, June 12, 2017 4:05 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 May 2017.

G&W’s traffic in May 2017 was 275,054 carloads, an increase of 42,307 carloads, or 18.2%, compared with May 2016. G&W’s same-railroad traffic in May 2017 was 237,945 carloads, an increase of 5,198 carloads, or 2.2%, compared with May 2016.

G&W’s traffic in the second quarter of 2017 through May was 535,494 carloads, an increase of 72,775 carloads, or 15.7%, compared with the second quarter of 2016 through May. G&W’s same-railroad traffic in the second quarter of 2017 through May was 463,177 carloads, an increase of 458 carloads, or 0.1%, compared with the second quarter of 2016 through May.

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

                 
Segment May 2017 May 2016 Change % Change
North American Operations 132,306 129,916 2,390 1.8%
Australian Operations(1) 50,570 14,973 35,597 NM
U.K./European Operations 92,178 87,858 4,320 4.9%
Total G&W Operations 275,054 232,747 42,307 18.2%
Carloads from New Railroads 37,109
Same-railroad carloads 237,945 232,747 5,198 2.2%
(1) 51.1% owned by G&W as of December 1, 2016.
 

May 2017 Highlights by Segment

  • North American Operations: Traffic in May 2017 was 132,306 carloads, an increase of 1.8% compared with May 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 1.1%, primarily due to decreased coal & coke, metals and petroleum products traffic, partially offset by increased minerals & stone and agricultural products traffic.
  • Australian Operations: Traffic in May 2017 was 50,570 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 15.3%, primarily due to increased metallic ores and agricultural products traffic, partially offset by decreased minerals & stone 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 May 2017 was 92,178 carloads, an increase of 4.9% compared with May 2016, primarily due to increased minerals & stone and intermodal traffic, partially offset by decreased coal & coke traffic.

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

                 
North American Operations: May 2017 May 2016 Change % Change
Agricultural Products 18,238 16,777 1,461 8.7%
Autos & Auto Parts 2,947 2,710 237 8.7%
Chemicals & Plastics 15,533 14,771 762 5.2%
Coal & Coke 12,626 14,616 (1,990) (13.6%)
Food & Kindred Products 5,041 4,869 172 3.5%
Intermodal 697 - 697 NM
Lumber & Forest Products 11,908 11,603 305 2.6%
Metallic Ores 1,415 2,113 (698) (33.0%)
Metals 11,753 13,022 (1,269) (9.7%)
Minerals & Stone 19,883 17,001 2,882 17.0%
Petroleum Products 7,890 9,059 (1,169) (12.9%)
Pulp & Paper 13,510 13,666 (156) (1.1%)
Waste 5,174 4,115 1,059 25.7%
Other 5,691 5,594 97 1.7%
Total carloads 132,306 129,916 2,390 1.8%
Carloads from New Railroads(1) 3,801
Same-railroad carloads 128,505 129,916 (1,411) (1.1%)

(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 280 carloads of autos & auto parts traffic, 519 carloads of chemicals & plastics traffic, 697 carloads of intermodal traffic, 132 carloads of metals traffic, 1,303 carloads of minerals & stone traffic and 870 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 decreased 1,990 carloads, or 13.6%, primarily due to decreased shipments of utility coal in G&W’s Central Region resulting from a planned maintenance outage at a customer facility, partially offset by increased shipments in G&W’s Midwest Region.
  • Metals traffic decreased 1,401 carloads, or 10.8%, primarily due to decreased shipments in G&W’s Southern, Coastal and Canada regions, partially offset by increased shipments in G&W’s Northeast Region.
  • Petroleum products traffic decreased 1,257 carloads, or 13.9%, primarily due to decreased shipments of liquid petroleum gases and natural gas liquids in G&W’s Mountain West and Northeast regions.
  • Minerals & stone increased 1,579 carloads, or 9.3%, primarily due to increased shipments of construction aggregates in G&W’s Central Region and increased shipments of frac sand in G&W’s Northeast Region.
  • Agricultural products traffic increased 1,340 carloads, or 8.0%, primarily due to increased grain shipments in G&W’s Mountain West, Central and Midwest regions.
  • All remaining traffic increased by a net 318 carloads.

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

                 
Australian Operations (1) : May 2017 May 2016 Change % Change
Agricultural Products 5,380 3,164 2,216 70.0%
Coal & Coke 33,308 - 33,308 NM
Intermodal 5,534 5,325 209 3.9%
Metallic Ores 3,222 706 2,516 NM
Minerals & Stone 3,102 5,758 (2,656) (46.1%)
Petroleum Products 24 20 4 20.0%
Total carloads 50,570 14,973 35,597 NM
Carloads from New Railroads(2) 33,308
Same-railroad carloads 17,262 14,973 2,289 15.3%
(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 33,308 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 2,516 carloads primarily due to the re-opening of a manganese mine in March 2017 and an iron ore mine in July 2016.
  • Agricultural products traffic increased 2,216 carloads, or 70.0%, primarily due to a stronger harvest in 2017.
  • Minerals & stone traffic decreased 2,656 carloads, or 46.1%, primarily due to a maintenance outage at a customer facility.
  • All remaining traffic increased by a net 213 carloads.

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

                 
U.K./European Operations: May 2017 May 2016 Change

%
Change

Agricultural Products 257 150 107 71.3%
Coal & Coke 1,450 2,869 (1,419) (49.5%)
Intermodal 75,067 72,545 2,522 3.5%
Metallic Ores - 93 (93) NM
Minerals & Stone 15,404 12,201 3,203 26.3%
Total carloads 92,178 87,858 4,320 4.9%
 
  • Minerals & stone traffic increased 3,203 carloads, or 26.3%, primarily due to increased shipments in Poland.
  • Intermodal traffic increased by 2,522 carloads, or 3.5%, due to increased shipments in the U.K., partially offset by decreased shipments in Continental Europe largely resulting from the elimination of unprofitable routes associated with the restructuring of the business commenced in Q1:2017.
  • Coal & coke traffic decreased 1,419 carloads, or 49.5%, primarily due to decreased shipments in the U.K.
  • All remaining traffic increased by a net 14 carloads.

Second Quarter of 2017 Through May Traffic

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

                 
Segment

QTD May
2017

QTD May
2016

Change

%
Change

North American Operations 261,393 254,785 6,608 2.6%
Australian Operations 100,091 30,052 70,039 NM
U.K./European Operations 174,010 177,882 (3,872) (2.2%)
Total G&W Operations 535,494 462,719 72,775 15.7%
Carloads from New Railroads 72,317
Same-railroad carloads 463,177 462,719 458 0.1%
 

The table below sets forth North American Operations carload information for the second quarter of 2017 through May and the second quarter of 2016 through May by commodity group.

                 
North American Operations:

QTD May
2017

QTD May
2016

Change % Change
Agricultural Products 35,623 32,217 3,406 10.6%
Autos & Auto Parts 6,070 5,226 844 16.2%
Chemicals & Plastics 30,455 30,480 (25) (0.1%)
Coal & Coke 28,988 29,410 (422) (1.4%)
Food & Kindred Products 9,895 9,770 125 1.3%
Intermodal 1,392 12 1,380 NM
Lumber & Forest Products 23,724 22,812 912 4.0%
Metallic Ores 2,785 4,206 (1,421) (33.8%)
Metals 23,124 24,435 (1,311) (5.4%)
Minerals & Stone 36,735 33,977 2,758 8.1%
Petroleum Products 15,433 16,779 (1,346) (8.0%)
Pulp & Paper 26,318 27,243 (925) (3.4%)
Waste 9,312 7,153 2,159 30.2%
Other 11,539 11,065 474 4.3%
Total carloads 261,393 254,785 6,608 2.6%
Carloads from New Railroads(1) 6,994
Same-railroad carloads 254,399 254,785 (386) (0.2%)

(1) Total carloads from P&W, which was acquired on November 1, 2016 and contributed 589 carloads of autos & auto parts traffic, 991 carloads of chemicals & plastics traffic, 1,386 carloads of intermodal traffic, 363 carloads of metals traffic, 2,182 carloads of minerals & stone traffic, and 1,483 carloads from all other commodities.

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

                 
Australian Operations (1) :

QTD May
2017

QTD May
2016

Change % Change
Agricultural Products 10,203 7,062 3,141 44.5%
Coal & Coke 65,323 0 65,323 NM
Intermodal 10,069 10,192 (123) (1.2%)
Metallic Ores 5,880 1,426 4,454 NM
Minerals & Stone 8,574 11,329 (2,755) (24.3%)
Petroleum Products 42 43 (1) (2.3%)
Total carloads 100,091 30,052 70,039 NM
Carloads from New Railroads(2) 65,323
Same-railroad carloads 34,768 30,052 4,716 15.7%
(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 65,323 carloads of coal & coke traffic.
 

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

                 
U.K./European Operations:

QTD May
2017

QTD May
2016

Change

%
Change

Agricultural Products 570 372 198 NM
Coal & Coke 3,374 5,878 (2,504) (42.6%)
Intermodal 141,532 146,974 (5,442) (3.7%)
Lumber & Forest Products - 90 (90) NM
Metallic Ores - 93 (93) NM
Minerals & Stone 28,534 24,475 4,059 16.6%
Total carloads 174,010 177,882 (3,872) (2.2%)
 

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, and operates 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