Genesee & Wyoming Reports Traffic for January 2016

February 10, 2016

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DARIEN, Conn.–(BUSINESS WIRE)–Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for January 2016.

G&W’s traffic in January 2016 was 218,431 carloads, an increase of 51,082 carloads, or 30.5%, compared with January 2015. G&W’s same-railroad traffic in January 2016 was 139,511 carloads, a decrease of 27,838 carloads, or 16.6%, compared with January 2015.

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

                                 
Segment

January
2016

January
2015

Change

%
Change

North American Operations 124,416 149,215 (24,799) (16.6%)
Australian Operations 15,095 18,134 (3,039) (16.8%)
U.K./European Operations(1) 78,920 n/a n/a n/a
Total G&W Operations 218,431 167,349 51,082 30.5%
(1) Operations from the Freightliner Group acquired on March 25, 2015
 

January 2016 Highlights by Segment

  • North American Operations: Traffic in January 2016 was 124,416 carloads, a decrease of 16.6% compared with January 2015. The decrease was primarily due to reduced shipments of coal & coke, minerals & stone, metals and agricultural products.
  • Australian Operations: Traffic in January 2016 was 15,095 carloads, a decrease of 16.8% compared with January 2015. The decrease was primarily due to reduced metallic ores shipments from previously disclosed closures of customer iron ore and manganese mines in 2015.
  • U.K./European Operations: Traffic was 78,920 carloads in January 2016. Traffic in January 2016 was led by intermodal traffic in the U.K. and continental Europe as well as minerals & stone traffic in Poland and the U.K.

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

                                 
North American Operations:

January
2016

January
2015

Change

%
Change

Agricultural Products 17,614 19,360 (1,746) (9.0%)
Autos & Auto Parts 1,800 2,290 (490) (21.4%)
Chemicals & Plastics 14,139 15,509 (1,370) (8.8%)
Coal & Coke 18,399 31,012 (12,613) (40.7%)
Food & Kindred Products 4,710 5,304 (594) (11.2%)
Lumber & Forest Products 10,840 10,951 (111) (1.0%)
Metallic Ores 2,088 2,082 6 0.3%
Metals 10,876 13,063 (2,187) (16.7%)
Minerals & Stone 12,915 16,176 (3,261) (20.2%)
Petroleum Products 8,900 9,567 (667) (7.0%)
Pulp & Paper 14,707 15,228 (521) (3.4%)
Waste 2,497 2,564 (67) (2.6%)
Other 4,931 6,109 (1,178) (19.3%)
Total carloads 124,416 149,215 (24,799) (16.6%)
 
  • North American Operations traffic decreased 24,799 carloads, or 16.6%, primarily due to reduced shipments of coal & coke, minerals & stone, metals and agricultural products.
  • Coal & coke traffic decreased 12,613 carloads, or 40.7%, primarily due to decreased shipments in G&W’s Midwest, Ohio Valley, Central and Northeast regions.
  • Minerals & stone traffic decreased 3,261 carloads, or 20.2%, primarily due to decreased shipments in G&W’s Northeast and Midwest regions.
  • Metals traffic decreased 2,187 carloads, or 16.7%, primarily due to decreased shipments in G&W’s Ohio Valley and Pacific regions.
  • Agricultural products traffic decreased 1,746 carloads, or 9.0%, primarily due to decreased shipments in G&W’s Mountain West, Ohio Valley and Pacific regions, partially offset by increased shipments in G&W’s Midwest and Coastal regions.
  • All remaining traffic decreased by a net 4,992 carloads.

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

                                 
Australian Operations:

January
2016

January
2015

Change

%
Change

Agricultural Products 4,043 4,833 (790) (16.3%)
Intermodal 4,409 4,635 (226) (4.9%)
Metallic Ores 816 3,750 (2,934) (78.2%)
Minerals & Stone 5,816 4,902 914 18.6%
Petroleum Products 11 14 (3) (21.4%)
Total carloads 15,095 18,134 (3,039) (16.8%)
 

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from previously disclosed closures of customer iron ore and manganese mines in 2015.

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

         
U.K./European Operations:

January
2016

Agricultural Products 65
Coal & Coke 4,033
Intermodal 67,245
Lumber & Forest Products 45
Minerals & Stone 7,532
Total carloads 78,920
 

Traffic volumes in the U.K./Europe operating segment include operations from Freightliner. G&W’s existing European operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.

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 nine 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 G&W’s existing operations in Australia and the newly-acquired Freightliner Australia operations. This segment represents approximately 10% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations. Revenues from Freightliner’s Australia operations are not reported as freight revenues and therefore are not included in this traffic report.
  • The U.K./European Operations segment is comprised of Freightliner’s operations in the U.K. and continental Europe and G&W’s existing European port shunting operations. This segment represents approximately 30% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations. G&W’s existing European port shunting operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.

About G&W

Genesee & Wyoming owns or leases 120 freight railroads worldwide that are organized in 11 operating regions with 7,500 employees and more than 2,500 customers.

  • G&W’s nine North American regions serve 41 U.S. states and four Canadian provinces and include 113 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.

Category: General