Genesee & Wyoming Inc., which has its administrative base in Rochester, last year secured $1.6 billion in new investments.
The railroad last week released its 2020 U.S. industrial development results, which includes 45 new projects that are expected to generate more than 800 new jobs in communities serviced by the company’s freight railroads.
“Security $1.6 billion of new investments across our U.S. footprint of 105 railroads is testimony not only to the critical role of rail transportation in the supply chain but also to the commitment and resiliency of our customers during the challenges of a global pandemic,” said G&W Chief Commercial Officer Mike Peters.
G&W’s 2020 wins include projects in more than half of the 42 states served by the company’s railroads, representing nearly 47,000 new carloads annually, 65 percent of which come from four commodity groups including agricultural products; chemicals and plastics; lumber and forest products; and minerals and stone.
Some of those wins include facilities for shipping automobiles in Fort Wayne, Ind.; for recycling zinc in Cass County, Ind.; for processing ore in Miami, Ariz.; for processing animal feed in Fulton, Ark.; and for mining pozzolan in Aguila, Ariz.
“Access to national and international markets is still the driving factor in attracting new rail-served projects,” said G&W’s Vice President of Industrial Development.
G&W owns or leases 116 freight railroads organized in locally managed operating regions with 7,300 employees serving 3,000 customers.
Genesee & Wyoming Inc. this week reported a rise in operating revenues and earnings, beating Street estimates.
For the fourth quarter ended Dec. 31, G&W posted a nearly 11 percent increase in operating revenues to $571.6 million from $516.5 million in the same quarter last year. Reported operating income more than doubled to $108.2 million, while adjusted operating income increased 2.2 percent to $105.7 million.
Reported diluted earnings per share were $6.81, compared with reported earnings of 15 cents a year ago. Adjusted diluted earnings fell 8.3 percent to 77 cents per share.
Analysts polled by Zacks Investment Research had expected EPS of 75 cents on revenue of $566.05 million.
“Our reported diluted EPS for the fourth quarter of 2017 were $6.81, of which a significant portion was a $372 million benefit from new tax legislation in the United States,” G&W CEO Jack Hellmann said in a statement. “Excluding the tax benefit and certain other items, our adjusted diluted EPS were 77 cents in the fourth quarter, as revenues in each of our geographic segments, North America, Australia and the U.K./Europe, finished the year in line with our expectations.”
Operating revenues from G&W’s North American Operations decreased 0.6 perent to $320.2 million. Reported operating income decreased 10.5 percent to $74.6 million, while adjusted operating income from G&W’s North American operations decreased 13.6 percent to $75.5 million.
G&W’s Australian operations operating revenues increased more than 23 percent to $75.5 million, while reported operating income increased from $2.8 million to $17.6 million. Adjusted operating income increased 66 percent to $22.5 million.
Operating revenues from the company’s U.K./European operations increased more than 32 percent to $175.8 million. Reported operating income was $16 million, while adjusted operating income rose from $2.4 million to $7.6 million in the fourth quarter.
For the full year, G&W reported net income of $549.1 million, compared with $141.1 million for the year ended Dec. 31, 2016. Excluding the impact of certain items, G&W’s adjusted net income for the year was $182 million, compared with $182.4 million in the previous year.
G&W’s diluted earnings per share were $8.79, compared with diluted EPS of $2.42 for the year ended Dec. 31, 2016. G&W’s adjusted diluted EPS for the year were $2.91, compared with adjusted EPS of $3.13 the previous year.
Darien, Conn.-based G&W, which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the U.S., Canada, the Netherlands and Australia. G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.
Separately, G&W announced an investment in and a strategic alliance with Cargomatic Inc., a technology platform connecting shippers and truck carriers with a focus on short-haul markets. Terms of the investment were not disclosed.
Headquartered in Long Beach, Calif., Cargomatic focuses on the fragmented short-haul and drayage trucking markets connecting shippers and carriers real-time via its web platform and apps. The Cargomatic platform facilitates increased truck capacity, real-time tracking and an efficient transportation solution for shippers while providing owner-operator and smaller truck carriers visibility to traffic volumes and operational flexibility.
“The Cargomatic team has built a world-class platform combining the best of technology and streamlined processes to connect shippers and carriers to drive supply chain efficiency. In addition to our investment in Cargomatic, we are pleased to add the Cargomatic platform as an extension of G&W’s rail service at terminal and transload locations across G&W’s U.S. rail network and to work with the Cargomatic team as they expand internationally to Europe and Australia,” said Michael Miller, chief commercial officer of G&W, in a statement. “By extending our first and last mile service offering, Cargomatic not only improves the efficiency of first and last mile logistics between rail and road, but it also simplifies the multimodal touchpoints for our customers.”
Shares of company stock (Nasdaq: GRW) were down more than 4 percent to $70.23 in midday trading Thursday.
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