Greenbrier posts strong quarterly results - Rail Update - Brief Article

Railway Age, Feb, 2004

Greenbrier reported strong earnings and a rising manufacturing backlog for the first quarter of its 2004 fiscal year. Earnings were 54.2 million compared with a profit of $3.3 million in the prior quarter and a net loss of $0.7 million in the first quarter of fiscal 2003. (Its fiscal year begins Sept. 1.) During the first quarter, revenues grew 16% to $112 million; new North American railcar deliveries, including those from an unconsolidated joint venture in Mexico, rose nearly 45% to 1,700 units. Greenbrier ended the quarter with a new railcar manufacturing backlog of 11,500 units valued at $620 million, compared to 10,700 cars valued at $580 million on Aug. 31. The company also has signed an undated letter of intent with a private equity group to recapitalize its European freight car operations.

Greenbrier President and CEO William Furman said: "Our strong railcar and marine manufacturing backlog provides good financial visibility stretching well into fiscal '05. The leasing and services segment is also benefiting from the market rebound. Our leased fleet of 12,000 owned railcars realized 95% 'on lease' utilization for the quarter, up from 92% at the end of the prior quarter. We intend to continue to add to our lease fleet during the year and to add other accretive investments."