Genesee & Wyoming : Reports Traffic for April 2016

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for April 2016.

G&W’s traffic in April 2016 was 229,972 carloads, a decrease of 21,725 carloads, or 8.6%, compared with April 2015.

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

April 2016 Highlights by Segment

• North American Operations: Traffic in April 2016 was 124,869 carloads, a decrease of 12.8% compared with April 2015. The decrease was primarily due to reduced shipments of coal & coke, agricultural products, minerals & stone and pulp & paper traffic.
• Australian Operations: Traffic in April 2016 was 15,079 carloads, a decrease of 19.8% compared with April 2015. The decrease was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore and manganese mines in 2015, as well as reduced agricultural products traffic.
• U.K./European Operations: Traffic in this segment includes carloads from Freightliner which was acquired by G&W on March 25, 2015. Traffic in April 2016 was 90,024 carloads, an increase of 0.3% compared with April 2015. The increase was primarily due to increased intermodal traffic, partially offset by reduced coal & coke and minerals & stone traffic.

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

• North American Operations traffic decreased 18,313 carloads, or 12.8%.
• Coal & coke traffic decreased 9,800 carloads, or 39.8%, primarily due to decreased shipments of utility coal in G&W’s Midwest, Ohio Valley, Northeast and Central regions.
• Agricultural products traffic decreased 2,829, or 15.5%, as low crop prices and a strong U.S. dollar led to decreased shipments in G&W’s Ohio Valley, Mountain West and Canada regions.
• Minerals & stone traffic decreased 1,659, or 8.9%, as weaker frac sand and salt shipments were partially offset by stronger cement shipments.
• Pulp & paper traffic decreased 1,640, or 10.8%, primarily due to decreased shipments in G&W’s Canada, Southern and Pacific regions.
• All remaining traffic decreased by a net 2,385 carloads.

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

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore and manganese mines in 2015, as well as decreased agricultural products traffic due to low global crop prices.

The table below sets forth U.K./European Operations carload information for April 2016 and April 2015 by commodity group.

• U.K./European Operations traffic increased 313 carloads, or 0.3%, primarily due to increased intermodal traffic, partially offset by reduced coal & coke and minerals & stone traffic.
• Intermodal traffic increased 7,163, or 10.6%, primarily due to increased shipments in the U.K.
• Coal & coke traffic decreased 5,416 carloads, or 64.3%, primarily due to decreased shipments in the U.K. and Poland.
• Minerals & stone traffic decreased 1,642 carloads, or 11.8%, primarily due to decreased shipments in Poland and the U.K.
• All remaining traffic increased by a net 208 carloads.

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 operations in South Australia, the Northern Territory and New South Wales. This segment represents approximately 10% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.
• The U.K./European Operations segment is comprised of operations in the U.K. and continental Europe. This segment represents approximately 30% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.

About G&W

Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 11 operating regions with 7,500 employees and more than 2,800 customers.

• G&W’s nine North American regions serve 41 U.S. states and four Canadian provinces and include 114 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./European 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.

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