Greenbrier Companies, Inc. saw its net income fall 3.6 percent year-over-year to $26.3 million, or $0.83 per diluted share, on revenues of $559.5 million for the first quarter of its 2018 fiscal year, which ended Nov. 30, 2017, according to the railroad transportation equipment manufacturer’s most recent unaudited financial statements.
First quarter FY2018 revenues were down 8.5 percent from the same quarter a year prior, primarily due to lower volume of deliveries, said Greenbriar.
During the quarter, Greenbrier received orders for 3,200 diversified railcars, valued at over $290 million, and new railcar deliveries totaled 4,400 units. The company’s new railcar backlog stood at 26,500 units on Nov. 30, 2017, with an estimated value of $2.56 billion, according to Greenbriar.
“Greenbrier advanced several key initiatives during the quarter and is on track to achieve our goals for the year,” Chairman and CEO William A. Furman said of the results. “While the new railcar market in North America is challenging, broad-based demand for Greenbrier’s products and services remains steady and we expect will trend higher as we advance through fiscal 2018. During the recent quarter, Greenbrier received 3,200 orders for a broad range of railcar types including covered hoppers, tanks, automotive carrying units and our first orders for open top hoppers for use in aggregate service.
“Greenbrier’s disciplined balance sheet management has resulted in a strong cash position and very low net debt, enabling us to invest strategically and return capital to shareholders,” he added. “Good backlog visibility combined with a strong balance sheet provides the flexibility we need to build railcars when and where customers need them, across four continents.”
Looking forward, Greenbriar expects deliveries to be between approximately 20,000 and 22,000 units for the full fiscal 2018 year, including Greenbrier-Maxion (Brazil), which will account for up to 10 percent of deliveries, with revenues of $2.4 billion to $2.6 billion.
“Based on first quarter results, we are confident in our guidance for the year,” said Furman. “As fiscal 2018 progresses, we will continue integration of our new manufacturing investments and will continue to expand internationally. Greenbrier is well positioned to achieve its ambitious business objectives for fiscal 2018 as growth in North American and international markets drives increased revenues, deliveries and EPS compared to fiscal 2017.”
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