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Genesee & Wyoming Reports Traffic for November 2017

Category:

Wednesday, December 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 November 2017.

G&W’s traffic in November 2017 was 271,912 carloads, an increase of 21,249 carloads, or 8.5%, compared with November 2016. G&W’s same-railroad traffic in November 2017 was 243,609 carloads, a decrease of 7,054 carloads, or 2.8%, compared with November 2016.

G&W’s traffic in the fourth quarter of 2017 through November was 547,229 carloads, an increase of 51,222 carloads, or 10.3%, compared with the fourth quarter of 2016 through November. G&W’s same-railroad traffic in the fourth quarter of 2017 through November was 486,116 carloads, a decrease of 9,891 carloads, or 2.0%, compared with the fourth quarter of 2016 through November.

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

                 
Segment

November
2017

November
2016

Change

%
Change

North American Operations 130,630 136,882 (6,252) (4.6%)
Australian Operations(1) 42,767 15,036 27,731 NM
U.K./European Operations 98,515 98,745 (230) (0.2%)
Total G&W Operations 271,912 250,663 21,249 8.5%
Carloads from New Railroads 28,303
Same-railroad carloads 243,609 250,663 (7,054) (2.8%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

November 2017 Highlights by Segment

  • North American Operations: Traffic in November 2017 was 130,630 carloads, a decrease of 4.6% compared with November 2016, including carloads from the Heart of Georgia Railroad, Inc. (HOG), which closed on May 31, 2017. On a same-railroad basis, North American traffic decreased 5.0%, primarily due to decreased coal & coke and agricultural products traffic.
  • Australian Operations: Traffic in November 2017 was 42,767 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. Coal & coke traffic, which operates primarily under a take-or-pay contract structure, was negatively affected in November 2017 by industrial action at Hunter Valley coal mines. On a same-railroad basis, Australian traffic was flat. 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 November 2017 was 98,515 carloads, flat compared with November 2016, primarily due to decreased coal & coke traffic in the U.K. and intermodal traffic in Continental Europe, mostly offset by increased intermodal and minerals & stone traffic in the U.K.

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

                 
North American Operations:

November
2017

November
2016

Change % Change
Agricultural Products 16,930 19,171 (2,241) (11.7%)
Autos & Auto Parts 3,103 2,735 368 13.5%
Chemicals & Plastics 14,672 14,882 (210) (1.4%)
Coal & Coke 17,240 21,655 (4,415) (20.4%)
Food & Kindred Products 5,205 5,167 38 0.7%
Intermodal 819 558 261 46.8%
Lumber & Forest Products 11,993 11,161 832 7.5%
Metallic Ores 1,280 1,632 (352) (21.6%)
Metals 10,529 11,375 (846) (7.4%)
Minerals & Stone 17,730 17,556 174 1.0%
Petroleum Products 8,545 9,382 (837) (8.9%)
Pulp & Paper 13,109 13,070 39 0.3%
Waste 4,238 4,058 180 4.4%
Other 5,237 4,480 757 16.9%
Total carloads 130,630 136,882 (6,252) (4.6%)
Carloads from New Railroads(1) 541
Same-railroad carloads 130,089 136,882 (6,793) (5.0%)
(1) Total carloads from HOG, which contributed 384 carloads of lumber & forest products traffic, and 157 carloads from all other commodities.
 

The following highlights relate to North American same-railroad traffic, excluding traffic from HOG, which was acquired on May 31, 2017.

  • Coal & coke traffic decreased 4,415 carloads, or 20.4%, primarily due to decreased shipments of utility coal in G&W’s Midwest Region.
  • Agricultural products traffic decreased 2,291 carloads, or 12.0%, primarily due to decreased grain shipments in G&W’s Central and Midwest regions.
  • All remaining traffic decreased by a net 87 carloads.

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

                 
Australian Operations (1) :

November
2017

November
2016

Change

%
Change

Agricultural Products 2,647 2,864 (217) (7.6%)
Coal & Coke 27,762 - 27,762 NM
Intermodal 4,785 5,048 (263) (5.2%)
Metallic Ores 1,870 1,587 283 17.8%
Minerals & Stone 5,683 5,505 178 3.2%
Petroleum Products 20 32 (12) (37.5%)
Total carloads 42,767 15,036 27,731 NM
Carloads from New Railroads(2) 27,762
Same-railroad carloads 15,005 15,036 (31) (0.2%)
(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 27,762 carloads of coal & coke traffic.
 

Australian coal & coke traffic, which operates primarily under a take-or-pay contract structure, was negatively affected in November 2017 by industrial action at Hunter Valley coal mines.

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

                 
U.K./European Operations:

November
2017

November
2016

Change

%
Change

Agricultural Products 516 238 278 NM
Coal & Coke 1,490 4,643 (3,153) (67.9%)
Intermodal 78,930 78,520 410 0.5%
Minerals & Stone 17,579 15,344 2,235 14.6%
Total carloads 98,515 98,745 (230) (0.2%)
 
  • Coal & coke traffic decreased 3,153 carloads, or 67.9%, primarily due to decreased shipments in the U.K.
  • Intermodal traffic increased 410 carloads, or 0.5%, primarily due to increased shipments in the U.K., partially offset by decreased shipments in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS.
  • Minerals & stone traffic increased 2,235 carloads, or 14.6%, primarily due to increased shipments in the U.K.
  • All remaining traffic increased by a net 278 carloads.

Fourth Quarter of 2017 Through November Traffic

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

                 
Segment

QTD Nov
2017

QTD Nov
2016

Change

%
Change

North American Operations 267,518 271,821 (4,303) (1.6%)
Australian Operations(1) 85,534 29,189 56,345 NM
U.K./European Operations 194,177 194,997 (820) (0.4%)
Total G&W Operations 547,229 496,007 51,222 10.3%
Carloads from New Railroads 61,113
Same-railroad carloads 486,116 496,007 (9,891) (2.0%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

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

                 
North American Operations:

QTD Nov
2017

QTD Nov
2016

Change % Change
Agricultural Products 34,526 39,261 (4,735) (12.1%)
Autos & Auto Parts 6,754 5,419 1,335 24.6%
Chemicals & Plastics 29,401 29,510 (109) (0.4%)
Coal & Coke 35,179 42,392 (7,213) (17.0%)
Food & Kindred Products 10,345 10,828 (483) (4.5%)
Intermodal 1,710 594 1,116 NM
Lumber & Forest Products 24,113 22,629 1,484 6.6%
Metallic Ores 2,835 3,223 (388) (12.0%)
Metals 21,825 22,045 (220) (1.0%)
Minerals & Stone 38,623 34,976 3,647 10.4%
Petroleum Products 15,900 17,969 (2,069) (11.5%)
Pulp & Paper 26,957 25,713 1,244 4.8%
Waste 8,762 8,090 672 8.3%
Other 10,588 9,172 1,416 15.4%
Total carloads 267,518 271,821 (4,303) (1.6%)
Carloads from New Railroads(1) 4,747
Same-railroad carloads 262,771 271,821 (9,050) (3.3%)
(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W (October 2017) and HOG. These railroads contributed 307 carloads of autos & auto parts traffic, 505 carloads of chemicals & plastics traffic, 891 carloads of intermodal traffic, 798 carloads of lumber & forest products traffic, 1,315 carloads of minerals & stone traffic and 931 carloads from all other commodities.
 

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

                 
Australian Operations (1) :

QTD Nov
2017

QTD Nov
2016

Change

%
Change

Agricultural Products 4,871 5,036 (165) (3.3%)
Coal & Coke 56,366 - 56,366 NM
Intermodal 9,619 10,128 (509) (5.0%)
Metallic Ores 3,592 2,829 763 27.0%
Minerals & Stone 11,037 11,149 (112) (1.0%)
Petroleum Products 49 47 2 4.3%
Total carloads 85,534 29,189 56,345 NM
Carloads from New Railroads(2) 56,366
Same-railroad carloads 29,168 29,189 (21) (0.1%)
(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 56,366 carloads of coal & coke traffic.
 

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

                 
U.K./European Operations:

QTD Nov
2017

QTD Nov
2016

Change

%
Change

Agricultural Products 969 557 412 74.0%
Coal & Coke 2,627 8,781 (6,154) (70.1%)
Intermodal 157,469 155,711 1,758 1.1%
Lumber & Forest Products - 158 (158) NM
Metallic Ores - 108 (108) NM
Minerals & Stone 33,112 29,682 3,430 11.6%
Total carloads 194,177 194,997 (820) (0.4%)
 

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, 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

G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

  • G&W’s seven 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 serves New South Wales, 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 UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

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