G&W Net Income Down in First Quarter

Genesee & Wyoming said its first quarter 2017 operating revenue rose 7.6 percent to $519.1 million from $482.6 million, while operating income increased nearly 36 percent to $77.5 million compared with results in the first quarter of 2016.

Adjusted operating income rose 8.6 percent to $86.6 million compared with $79.8 million in 2016. However, net income fell to $26.2 million in the quarter from $27 million a year ago.

Excluding the net impact of certain items affecting comparisons between the quarters, G&W’s adjusted net income in the first quarter of 2017 was $32.9 million, compared with $38.6 million in the first quarter of 2016.

G&W posted adjusted diluted earnings per share were 53 cents compared with 67 cents in the year-ago quarter.

“ . . . our first quarter financial results were weaker than expected as North American same railroad carload growth of 3 percent was at the low end of our outlook and our operating ratio was a bit higher than plan, primarily due to track washout and derailment expenses,” said G&W President and Chief Executive Officer Jack Hellman in a statement.

G&W said its 2017 outlook remains unchanged.

“In North America, we continue to see modest carload growth with several customer projects starting up later in the year,” Hellman said. “ . . . we continue to generate strong free cash flow and to evaluate a range of acquisition and investment opportunities across our global footprint of railroads.”

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