DARIEN, CT, June 11, 2015 (Business Wire) -Genesee & Wyoming Inc. today provided a business update for the second quarter of 2015 and reported traffic volumes for May 2015.
Second Quarter 2015 Business Update
G&W's traffic in the second quarter of 2015 through May has been below the Company's expectations, with same-railroad traffic declining 13.4% versus prior year, compared with expectations of a decline of 5% versus prior year for the full quarter. Significant negative North American carload variances versus expectations through May 2015 include: (1) lower steam coal traffic, primarily due to competition from natural gas, (2) lower agricultural products and food & kindred products, primarily due to the timing of shipments, (3) lower than expected shipments of energy related traffic such as crude oil and frac sand and (4) lower metals traffic, which has been adversely impact by competition from imported steel.
Based on results through May, G&W expects second quarter 2015 revenues to be approximately $535 million to $545 million, below its guidance of $565 million to $580 million provided on May 1, 2015, and an operating ratio between 81% - 82%, compared with guidance of approximately 80%. As a result, G&W expects consolidated earnings per diluted share in the second quarter of 2015 to be approximately $0.90 to $0.94 compared to guidance provided on May 1, 2015 of $1.05 to $1.10.
G&W expects to provide an update to full year 2015 guidance on its second quarter earnings call, to be held in early August 2015.
May 2015 Traffic
G&W's traffic in May 2015 was 150,010 carloads, a decrease of 21,381 carloads, or 12.5%, compared with May 2014. G&W's same-railroad traffic in May 2015 was 142,555 carloads, a decrease of 28,836 carloads, or 16.8%, compared with May 2014. Traffic from G&W's Freightliner acquisition, which was completed on March 25, 2015, is not included in this press release.
G&W's traffic in the second quarter of 2015 through May was 311,996 carloads, a decrease of 29,908 carloads, or 8.7%, compared with the second quarter of 2014 through May. G&W's same-railroad traffic in the second quarter of 2015 through May was 296,084 carloads, a decrease of 45,820 carloads, or 13.4%, compared with the second quarter of 2014 through May.
[Editor's note: G&W reported its pulp and paper rail volume in May was up 1.6% from a year ago at 14,936 carloads. Lumber/forest products was down 9.9% to 10,895 units. For the quarter through May, pulp and paper volume was up 4.7% to 30,153 carloads and lumber/forest was down 4.8% to 22,813 carloads.]