Genesee & Wyoming Reports Traffic for September 2017

DARIEN, Conn.--()--Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for September 2017 and the third quarter of 2017.

G&W’s traffic in September 2017 was 259,516 carloads, an increase of 14,720 carloads, or 6.0%, compared with September 2016. G&W’s same-railroad traffic in September 2017 was 235,175 carloads, a decrease of 9,621 carloads, or 3.9%, compared with September 2016.

G&W’s traffic in the third quarter of 2017 was 814,128 carloads, an increase of 74,314 carloads, or 10.0%, compared with the third quarter of 2016. G&W’s same-railroad traffic in the third quarter of 2017 was 719,620 carloads, a decrease of 20,194 carloads, or 2.7%, compared with the third quarter of 2016.

The table below sets forth summary total carloads by segment for September 2017 and September 2016.

Segment      

September
2017

   

September
2016

    Change    

%
Change

North American Operations 132,654 132,329 325 0.2%
Australian Operations(1) 31,552 14,084 17,468 NM
U.K./European Operations 95,310 98,383 (3,073) (3.1%)
Total G&W Operations 259,516 244,796 14,720 6.0%
Carloads from New Railroads 24,341
Same-railroad carloads 235,175 244,796 (9,621) (3.9%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

September 2017 Highlights by Segment

  • North American Operations: Traffic in September 2017 was 132,654 carloads, an increase of 0.2% compared with September 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on November 1, 2016, and the Heart of Georgia Railroad, Inc. (HOG), which closed on May 31, 2017. On a same-railroad basis, North American traffic decreased 3.2%, primarily due to decreased coal & coke and agricultural products traffic.
  • Australian Operations: Traffic in September 2017 was 31,552 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. Coal & Coke traffic, which operates primarily under a take or pay contract structure, was negatively affected in September 2017 by industrial action at Hunter Valley coal mines. On a same-railroad basis, Australian traffic decreased 16.6%, primarily due to decreased minerals & stone traffic as a result of an expected outage at a customer port facility, partially offset by increased metallic ores and agricultural products traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 48.9% equity stake in its Australian Operations to Macquarie Infrastructure and Real Assets. Carload information for the Australian Operations is presented on a 100% basis.
  • U.K./European Operations: Traffic in September 2017 was 95,310 carloads, a decrease of 3.1% compared with September 2016, primarily due to decreased intermodal traffic in Continental Europe and lower U.K. coal & coke traffic, partially offset by increased minerals & stone traffic.

The table below sets forth North American Operations carload information for September 2017 and September 2016 by commodity group.

North American Operations:      

September
2017

   

September
2016

    Change     % Change
Agricultural Products 15,956 17,491 (1,535) (8.8%)
Autos & Auto Parts 3,662 2,580 1,082 41.9%
Chemicals & Plastics 14,167 13,462 705 5.2%
Coal & Coke 18,718 20,988 (2,270) (10.8%)
Food & Kindred Products 4,654 5,463 (809) (14.8%)
Intermodal 1,013 94 919 NM
Lumber & Forest Products 11,904 11,675 229 2.0%
Metallic Ores 1,514 1,359 155 11.4%
Metals 11,546 11,355 191 1.7%
Minerals & Stone 19,078 17,656 1,422 8.1%
Petroleum Products 7,693 8,111 (418) (5.2%)
Pulp & Paper 13,414 13,201 213 1.6%
Waste 4,307 4,374 (67) (1.5%)
Other 5,028 4,520 508 11.2%
Total carloads 132,654 132,329 325 0.2%
Carloads from New Railroads(1) 4,542
Same-railroad carloads 128,112 132,329 (4,217) (3.2%)
(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include P&W and HOG. These railroads contributed 358 carloads of autos & auto parts traffic, 462 carloads of chemicals & plastics traffic, 1,013 carloads of intermodal traffic, 372 carloads of lumber & forest products traffic, 1,554 carloads of minerals & stone traffic, and 783 carloads from all other commodities.
 

The following highlights relate to North American same-railroad traffic, excluding traffic from P&W, which was acquired on November 1, 2016, and HOG, which was acquired on May 31, 2017.

  • Coal & coke traffic decreased 2,270 carloads, or 10.8%, primarily due to decreased shipments of utility coal in G&W’s Midwest Region.
  • Agricultural products traffic decreased 1,693 carloads, or 9.7%, primarily due to weaker than expected shipments in G&W’s Central Region due to drought conditions in South Dakota as well as decreased export grain shipments in G&W’s Midwest Region.
  • All remaining traffic decreased by a net 254 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for September 2017 and September 2016 by commodity group.

Australian Operations(1):      

September
2017

   

September
2016

    Change    

%
Change

Agricultural Products 3,777 2,896 881 30.4%
Coal & Coke 19,799 - 19,799 NM
Intermodal 4,877 4,916 (39) (0.8%)
Metallic Ores 2,190 1,267 923 72.8%
Minerals & Stone 881 4,977 (4,096) (82.3%)
Petroleum Products 28 28 - -
Total carloads 31,552 14,084 17,468 NM
Carloads from New Railroads(2) 19,799
Same-railroad carloads 11,753 14,084 (2,331) (16.6%)
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 19,799 carloads of coal & coke traffic.
 

Australian Coal & Coke traffic, which operates primarily under a take or pay contract structure, was negatively affected in September 2017 by industrial action at Hunter Valley coal mines.

The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on December 1, 2016.

  • Minerals & stone traffic decreased 4,096 carloads, or 82.3%, primarily due to an expected outage at a customer port facility.
  • Metallic ores traffic increased 923 carloads, or 72.8%, primarily due to the re-opening of a manganese mine in March 2017.
  • Agricultural products traffic increased 881 carloads, or 30.4%, primarily due to a stronger harvest in 2017.
  • All remaining traffic decreased by a net 39 carloads.

The table below sets forth U.K./European Operations carload information for September 2017 and September 2016 by commodity group.

U.K./European Operations:      

September
2017

   

September
2016

    Change    

%
Change

Agricultural Products 305 246 59 24.0%
Coal & Coke 1,699 3,275 (1,576) (48.1%)
Intermodal 77,180 79,514 (2,334) (2.9%)
Minerals & Stone 16,126 15,348 778 5.1%
Total carloads 95,310 98,383 (3,073) (3.1%)
 
  • Intermodal traffic decreased 2,334 carloads, or 2.9%, primarily due to decreased shipments in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS, partially offset by increased intermodal shipments in the U.K.
  • Coal & coke traffic decreased 1,576 carloads, or 48.1%, primarily due to decreased shipments in the U.K.
  • Minerals & stone traffic increased 778 carloads, or 5.1%, primarily due to increased shipments in Poland.
  • All remaining traffic increased by a net 59 carloads.

Third Quarter of 2017 Traffic

The table below sets forth summary total carloads by segment for the third quarter of 2017 and the third quarter of 2016.

Segment       Q3 2017     Q3 2016     Change    

%
Change

North American Operations 407,697 401,999 5,698 1.4%
Australian Operations(1) 123,651 43,532 80,119 NM
U.K./European Operations 282,780 294,283 (11,503) (3.9%)
Total G&W Operations 814,128 739,814 74,314 10.0%
Carloads from New Railroads 94,508
Same-railroad carloads 719,620 739,814 (20,194) (2.7%)
(1) 51.1% owned by G&W as of December 1, 2016.
 

The table below sets forth North American Operations carload information for the third quarter of 2017 and the third quarter of 2016 by commodity group.

North American Operations:       Q3 2017     Q3 2016     Change     % Change
Agricultural Products 47,588 54,024 (6,436) (11.9%)
Autos & Auto Parts 9,728 7,035 2,693 38.3%
Chemicals & Plastics 43,739 42,402 1,337 3.2%
Coal & Coke 60,864 63,028 (2,164) (3.4%)
Food & Kindred Products 14,415 15,557 (1,142) (7.3%)
Intermodal 3,145 112 3,033 NM
Lumber & Forest Products 35,846 35,253 593 1.7%
Metallic Ores 4,667 4,536 131 2.9%
Metals 34,003 31,978 2,025 6.3%
Minerals & Stone 57,104 53,530 3,574 6.7%
Petroleum Products 24,772 24,959 (187) (0.7%)
Pulp & Paper 42,244 41,721 523 1.3%
Waste 14,330 13,420 910 6.8%
Other 15,252 14,444 808 5.6%
Total carloads 407,697 401,999 5,698 1.4%
Carloads from New Railroads(1) 13,366
Same-railroad carloads 394,331 401,999 (7,668) (1.9%)
(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 849 carloads of autos & auto parts traffic, 1,457 carloads of chemicals & plastics traffic, 3,145 carloads of intermodal traffic, 1,268 carloads of lumber & forest products traffic, 4,180 carloads of minerals & stone traffic and 2,467 carloads from all other commodities.
 

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the third quarter of 2017 and the third quarter of 2016 by commodity group.

Australian Operations(1):       Q3 2017     Q3 2016     Change    

%
Change

Agricultural Products 13,163 8,624 4,539 52.6%
Coal & Coke 81,142 - 81,142 NM
Intermodal 15,416 15,417 (1) (0.0%)
Metallic Ores 8,354 4,846 3,508 72.4%
Minerals & Stone 5,488 14,567 (9,079) (62.3%)
Petroleum Products 88 78 10 12.8%
Total carloads 123,651 43,532 80,119 NM
Carloads from New Railroads(2) 81,142
Same-railroad carloads 42,509 43,532 (1,023) (2.3%)
(1) 51.1% owned by G&W as of December 1, 2016.
(2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 81,142 carloads of coal & coke traffic.
 

The table below sets forth U.K./European Operations carload information for the third quarter of 2017 and the third quarter of 2016 by commodity group.

U.K./European Operations:       Q3 2017     Q3 2016     Change    

%
Change

Agricultural Products 777 652 125 19.2%
Coal & Coke 3,798 9,276 (5,478) (59.1%)
Intermodal 229,059 239,055 (9,996) (4.2%)
Minerals & Stone 49,146 45,300 3,846 8.5%
Total carloads 282,780 294,283 (11,503) (3.9%)
 

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, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

About G&W

G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

  • G&W’s seven North American regions serve 41 U.S. states and four Canadian provinces and include 115 short line and regional freight railroads with more than 13,000 track-miles.
  • G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
  • G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

Contacts

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

Release Summary

Genesee & Wyoming Reports Traffic for September 2017 and the Third Quarter of 2017

Contacts

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