Greenbrier 2Q profit falls, but beats Street


Associated Press

Posted on April 4, 2013 at 5:00 AM

Updated Thursday, Apr 4 at 5:00 AM

LAKE OSWEGO, Ore. (AP) — Greenbrier's fiscal second-quarter net income dropped 22 percent as revenue softened across its business segments. Its earnings topped analysts' expectations, but revenue fell short of Wall Street's view.

The railcar company said Thursday that it plans to free up $100 million of capital by the end of fiscal 2014 by selling non-core or underperforming operations, particularly in its wheel services, refurbishment and parts unit. It plans to use the $100 million to reduce debt, make investments or return to shareholders.

For the three months ended Feb. 28, Greenbrier Cos. earned $13.8 million, or 45 cents per share, down from $17.7 million, or 57 cents per share, a year earlier.

Analysts polled by FactSet expected earnings of 37 cents per share.

Revenue for the Lake Oswego, Ore., company declined 8 percent to $423.2 million from $458.2 million. Wall Street forecast $447.2 million in revenue.

Manufacturing revenue fell to $294 million from $320.2 million, while wheel services, refurbishment and parts revenue dropped to $112 million from $119.9 million. Leasing and services revenue declined to $17.2 million from $18.1 million.

New railcar deliveries totaled 2,700 units for the quarter. New railcar manufacturing backlog was 11,700 units at quarter's end, with an estimated value of $1.3 billion. Marine backlog was $9 million at quarter's end.

Greenbrier anticipates new railcar deliveries of approximately 13,000 units for 2013. It predicts earnings per share and revenue for the year will be similar to fiscal 2012 — which included earnings of $1.91 per share on revenue of $1.81 billion.

Analysts expect 2013 earnings of $1.93 per share on revenue of $1.89 billion.

Its shares finished at $21.80 on Wednesday.