Greenbrier Earnings Rise as Deliveries Increase
Intermodal and freight car manufacturer Greenbrier Cos. raised net income 27% to $42.8 million, or $1.33 per share, in its fiscal third quarter ended May 31 as railcar deliveries increased.
Greenbrier, based in Lake Oswego, Oregon, announced deliveries reached 5,700 in the quarter, 500 more than in its fiscal second quarter and 1,400 more than the same period in the prior fiscal year. Revenue rose 20% to $714.6 million. Prior-year earnings were $33.6 million, or $1.03.
Orders received totaled 5,300 units. Because deliveries exceeded orders, Greenbrier also reported that its railcar backlog dropped to 45,100 units from the fiscal second quarter, which was the first decline in six quarters. Total value of equipment on order is $4.86 billion.
“Orders were in line with our expectations,” Michael Baudendistel, a Stifel Nicolaus analyst, wrote in a report. “We believe it will be difficult for the company to grow its backlog in the coming quarters, especially considering orders received in June were for less than 1,000 units.”
Earnings were reduced by costs related to an acquisition effort that failed.
