Greenbrier Companies Third Quarter Results Fall Short of Expectations

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Last Update: 08-Jul-11 10:13 ET

Greenbrier Companies (GBX $21.43 -0.54) reported third quarter earnings of $0.10 per share, excluding non-recurring items, $0.11 worse than the Capital IQ Consensus Estimate of $0.21.

Revenues rose 53.1% year/year to $317 million versus the $370.7 million consensus.

With regard to company's outlook, Based on current business trends, mgmt continues to anticipate that both revenues and Adjusted EBITDA will be higher in the fourth quarter than the third quarter of 2011. Management anticipates the co will continue to be profitable in the fourth quarter of the year and for the year as a whole, excluding any one-time charges associated with the early retirement of debt. Profitability will be driven by continued new railcar delivery momentum, production efficiencies, an optimized balance sheet and anticipated higher wheel services and repair volumes.

The company said: "...these results did not fully meet our expectations, principally due to a temporary shortage of castings in North America and a temporary delay in certification of railcars in Europe, which dampened new railcar deliveries by about 300 units. In addition, about $2 million of certain other non-recurring general & administrative costs were incurred during the third quarter. Business momentum continues in what co believes is the early stage of an upturn in the markets they serve. Additionally, co reports new railcar deliveries in the third quarter of 2011 were 2,200 units, compared to 700 units in the third quarter of 2010. The company's new railcar manufacturing backlog as of May 31, 2011 was 13,600 units with an estimated value of $1.05 billion, compared to 9,500 units valued at $720 million at February 28, 2011.