Genesee & Wyoming Reports Traffic for September 2016 and the Third Quarter of 2016

DARIEN, Conn.--()--Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for September 2016 and the third quarter of 2016.

G&W’s traffic in September 2016 was 244,796 carloads, a decrease of 9,498 carloads, or 3.7%, compared with September 2015.

G&W’s traffic in the third quarter of 2016 was 739,814 carloads, a decrease of 32,836 carloads, or 4.2%, compared with the third quarter of 2015.

The table below sets forth summary total carloads by segment for September 2016 and September 2015.

Segment      

September
2016

   

September
2015

    Change    

%
Change

North American Operations 132,329 137,665 (5,336) (3.9%)
Australian Operations 14,084 14,797 (713) (4.8%)
U.K./European Operations 98,383 101,832 (3,449) (3.4%)
Total G&W Operations 244,796 254,294 (9,498) (3.7%)
 

September 2016 Highlights by Segment

  • North American Operations: Traffic in September 2016 was 132,329 carloads, a decrease of 3.9% compared with September 2015. The decrease was primarily due to reduced coal & coke, pulp & paper and chemicals & plastics traffic.
  • Australian Operations: Traffic in September 2016 was 14,084 carloads, a decrease of 4.8% compared with September 2015. The decrease was primarily due to reduced metallic ores traffic.
  • U.K./European Operations: Traffic in September 2016 was 98,383 carloads, a decrease of 3.4% compared with September 2015. The decrease was primarily due to reduced intermodal and coal & coke traffic.

The table below sets forth North American Operations carload information for September 2016 and September 2015 by commodity group.

North American Operations:      

September
2016

   

September
2015

    Change    

%
Change

Agricultural Products 17,491 16,626 865 5.2%
Autos & Auto Parts 2,580 2,315 265 11.4%
Chemicals & Plastics 13,462 14,649 (1,187) (8.1%)
Coal & Coke 20,988 24,141 (3,153) (13.1%)
Food & Kindred Products 5,463 5,184 279 5.4%
Intermodal 94 60 34 NM
Lumber & Forest Products 11,675 11,777 (102) (0.9%)
Metallic Ores 1,359 1,906 (547) (28.7%)
Metals 11,355 11,217 138 1.2%
Minerals & Stone 17,656 18,178 (522) (2.9%)
Petroleum Products 8,111 8,242 (131) (1.6%)
Pulp & Paper 13,201 14,837 (1,636) (11.0%)
Waste 4,374 3,688 686 18.6%
Other 4,520 4,845 (325) (6.7%)
Total carloads 132,329 137,665 (5,336) (3.9%)
 
  • North American Operations traffic decreased 5,336 carloads, or 3.9%.
  • Coal & coke traffic decreased 3,153 carloads, or 13.1%, primarily due to decreased shipments of utility coal in G&W’s Central and Northeast regions.
  • Pulp & paper traffic decreased 1,636 carloads, or 11.0%, primarily due to decreased shipments in the Southern, Northeast and Canada regions.
  • Chemicals & plastic traffic decreased 1,187 carloads, or 8.1%, with decreased shipments across most regions.
  • All remaining traffic increased by a net 640 carloads.

The table below sets forth Australian Operations carload information for September 2016 and September 2015 by commodity group.

Australian Operations:      

September
2016

   

September
2015

    Change    

%
Change

Agricultural Products 2,896 3,068 (172) (5.6%)
Intermodal 4,916 5,156 (240) (4.7%)
Metallic Ores 1,267 1,690 (423) (25.0%)
Minerals & Stone 4,977 4,854 123 2.5%
Petroleum Products 28 29 (1) (3.4%)
Total carloads 14,084 14,797 (713) (4.8%)
 

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from the previously announced closure of a manganese mine in 2015, partially offset by the short-term re-opening of an iron ore mine in 2016.

The table below sets forth U.K./European Operations carload information for September 2016 and September 2015 by commodity group.

U.K./European Operations:      

September
2016

   

September
2015

    Change    

%
Change

Agricultural Products 246 38 208 NM
Coal & Coke 3,275 5,460 (2,185) (40.0%)
Intermodal 79,514 81,823 (2,309) (2.8%)
Minerals & Stone 15,348 14,511 837 5.8%
Total carloads 98,383 101,832 (3,449) (3.4%)
 
  • U.K./European Operations traffic decreased 3,449 carloads, or 3.4%.
  • Intermodal traffic decreased 2,309 carloads, or 2.8%, primarily due to congestion at the Port of Felixstowe in the U.K.
  • Coal & coke traffic decreased 2,185 carloads, or 40.0%, primarily due to decreased shipments in the U.K. and Poland.
  • All remaining traffic increased by a net 1,045 carloads.

Third Quarter of 2016 Traffic

The table below sets forth summary total carloads by segment for the third quarter of 2016 and the third quarter of 2015.

Segment       Q3 2016     Q3 2015     Change    

%
Change

North American Operations 401,999 419,571 (17,572) (4.2%)
Australian Operations 43,532 48,532 (5,000) (10.3%)
U.K./European Operations 294,283 304,547 (10,264) (3.4%)
Total G&W Operations 739,814 772,650 (32,836) (4.2%)
 

The table below sets forth North American Operations carload information for the third quarter of 2016 and the third quarter of 2015 by commodity group.

North American Operations:       Q3 2016     Q3 2015     Change    

%
Change

Agricultural Products 54,024 51,010 3,014 5.9%
Autos & Auto Parts 7,035 6,997 38 0.5%
Chemicals & Plastics 42,402 43,829 (1,427) (3.3%)
Coal & Coke 63,028 71,197 (8,169) (11.5%)
Food & Kindred Products 15,557 15,261 296 1.9%
Intermodal 112 66 46 NM
Lumber & Forest Products 35,253 34,770 483 1.4%
Metallic Ores 4,536 6,291 (1,755) (27.9%)
Metals 31,978 34,507 (2,529) (7.3%)
Minerals & Stone 53,530 56,977 (3,447) (6.0%)
Petroleum Products 24,959 25,242 (283) (1.1%)
Pulp & Paper 41,721 45,270 (3,549) (7.8%)
Waste 13,420 11,453 1,967 17.2%
Other 14,444 16,701 (2,257) (13.5%)
Total carloads 401,999 419,571 (17,572) (4.2%)
 

The table below sets forth Australian Operations carload information for the third quarter of 2016 and the third quarter of 2015 by commodity group.

Australian Operations:       Q3 2016     Q3 2015     Change    

%
Change

Agricultural Products 8,624 11,442 (2,818) (24.6%)
Intermodal 15,417 16,045 (628) (3.9%)
Metallic Ores 4,846 5,724 (878) (15.3%)
Minerals & Stone 14,567 15,224 (657) (4.3%)
Petroleum Products 78 97 (19) (19.6%)
Total carloads 43,532 48,532 (5,000) (10.3%)
 

The table below sets forth U.K./European Operations carload information for the third quarter of 2016 and the third quarter of 2015 by commodity group.

U.K./European Operations:       Q3 2016     Q3 2015     Change    

%
Change

Agricultural Products 652 169 483 NM
Coal & Coke 9,276 17,678 (8,402) (47.5%)
Intermodal 239,055 243,161 (4,106) (1.7%)
Minerals & Stone 45,300 43,539 1,761 4.0%
Total carloads 294,283 304,547 (10,264) (3.4%)
 

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, income from operations or net income.

G&W’s three reportable segments are summarized as follows:

  • The North American Operations segment is comprised of eight operating regions in the U.S. and Canada. This segment represents approximately 60% of G&W’s total operating revenues and approximately 80% of G&W’s total income from operations.
  • The Australian Operations segment is comprised of operations in South Australia, the Northern Territory and New South Wales. This segment represents approximately 10% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.
  • The U.K./European Operations segment is comprised of operations in the U.K. and continental Europe. This segment represents approximately 30% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.

About G&W

Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 10 operating regions with approximately 7,200 employees and more than 2,800 customers.

  • G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.
  • G&W’s Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
  • G&W’s U.K./Europe Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

For more information, visit gwrr.com.

Contacts

Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com

Release Summary

Genesee & Wyoming Reports Traffic for September 2016 and the Third Quarter of 2016

Contacts

Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com