G&W Operating Fell in 2nd Quarter

Genesee & Wyoming reported this week that its operating income in the second quarter of 2019 fell by 9 percent to $4.2 million.

Revenue declined 4 percent, to $571.5 million, G&W said, while earnings per share increased 23 percent, to 90 cents.

The company attributed the operating income decline to slumping international operations that offset improved North American results.

On a same-railroad basis, G&W reported higher revenue and profits for its North American operations despite a 3.5 percent decline in traffic.

Operating income rose 5 percent to $84.3 million, as revenue increased 2.6 percent, to $333,934 on a same-railroad basis.

The North American operating ratio improved by a point, to 75.4 percent for the quarter.

Traffic declined at G&W’s 114 North American railroads amid a volume slump.

“The decrease in traffic from existing operations included decreases of 11,206 carloads of coal and coke traffic, 4,221 carloads of metals traffic, 3,734 carloads of pulp and paper traffic, 2,307 carloads of lumber and forest products traffic and 1,683 carloads of other commodity traffic, partially offset by increases of 5,418 carloads of agricultural products traffic and 1,015 carloads of chemicals and plastics traffic,” G&W said in a regulatory filing.

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