GENESEE & WYOMING INC. Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for June 2017 and the second quarter of 2017.
G&W’s traffic in June 2017 was 274,588 carloads, an increase of 30,391 carloads, or 12.4%, compared with June 2016. G&W’s same-railroad traffic in June 2017 was 242,763 carloads, a decrease of 1,434 carloads, or 0.6%, compared with June 2016.
G&W’s traffic in the second quarter of 2017 was 810,082 carloads, an increase of 103,166 carloads, or 14.6%, compared with the second quarter of 2016. G&W’s same-railroad traffic in the second quarter of 2017 was 705,940 carloads, a decrease of 976 carloads, or 0.1%, compared with the second quarter of 2016.
The table below sets forth summary total carloads by segment for June 2017 and June 2016.
| Segment | June |
June | Change | % | |||||||||
| North American Operations | 135,654 | 131,338 | 4,316 | 3.3% | |||||||||
| Australian Operations(1) | 45,998 | 14,199 | 31,799 | NM | |||||||||
| U.K./European Operations | 92,936 | 98,660 | (5,724) | (5.8%) | |||||||||
| Total G&W Operations | 274,588 | 244,197 | 30,391 | 12.4% | |||||||||
| Carloads from New Railroads | 31,825 | ||||||||||||
| Same-railroad carloads | 242,763 | 244,197 | (1,434) | (0.6%) | |||||||||
| (1) 51.1% owned by G&W as of December 1, 2016. | |||||||||||||
June 2017 Highlights by Segment
- North American Operations: Traffic in June 2017 was 135,654 carloads, an increase of 3.3% compared with June 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on November 1, 2016, and the Heart of Georgia Railroad, Inc. (HOG), which closed on May 31, 2017. On a same-railroad basis, North American traffic decreased 0.1%.
- Australian Operations: Traffic in June 2017 was 45,998 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 31.4%, primarily due to increased metallic ores and agricultural products traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 48.9% equity stake in its Australian Operations to Macquarie Infrastructure and Real Assets. Carload information for the Australian Operations is presented on a 100% basis.
- U.K./European Operations: Traffic in June 2017 was 92,936 carloads, a decrease of 5.8% compared with June 2016, primarily due to decreased intermodal and coal & coke traffic, partially offset by increased minerals & stone traffic.
The table below sets forth North American Operations carload information for June 2017 and June 2016 by commodity group.
| North American Operations: | June 2017 | June 2016 | Change | % Change | |||||||||
| Agricultural Products | 17,330 | 17,113 | 217 | 1.3% | |||||||||
| Autos & Auto Parts | 3,114 | 2,920 | 194 | 6.6% | |||||||||
| Chemicals & Plastics | 14,359 | 14,395 | (36) | (0.3%) | |||||||||
| Coal & Coke | 17,513 | 16,827 | 686 | 4.1% | |||||||||
| Food & Kindred Products | 4,911 | 4,678 | 233 | 5.0% | |||||||||
| Intermodal | 975 | - | 975 | NM | |||||||||
| Lumber & Forest Products | 11,895 | 11,749 | 146 | 1.2% | |||||||||
| Metallic Ores | 1,464 | 1,916 | (452) | (23.6%) | |||||||||
| Metals | 11,571 | 11,446 | 125 | 1.1% | |||||||||
| Minerals & Stone | 20,033 | 17,905 | 2,128 | 11.9% | |||||||||
| Petroleum Products | 8,479 | 8,683 | (204) | (2.3%) | |||||||||
| Pulp & Paper | 13,495 | 13,885 | (390) | (2.8%) | |||||||||
| Waste | 5,075 | 4,367 | 708 | 16.2% | |||||||||
| Other | 5,440 | 5,454 | (14) | (0.3%) | |||||||||
| Total carloads | 135,654 | 131,338 | 4,316 | 3.3% | |||||||||
| Carloads from New Railroads(1) | 4,489 | ||||||||||||
| Same-railroad carloads | 131,165 | 131,338 | (173) | (0.1%) |
| (1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 308 carloads of autos & auto parts traffic, 495 carloads of chemicals & plastics traffic, 975 carloads of intermodal traffic, 392 carloads of lumber & forest products traffic, 1,324 carloads of minerals & stone traffic and 995 carloads from all other commodities. |
The following highlights relate to North American same-railroad traffic, excluding traffic from P&W, which was acquired on November 1, 2016, and HOG, which was acquired on May 31, 2017.
- Minerals & stone increased 804 carloads, or 4.5%, primarily due to increased shipments of construction aggregates in G&W’s Central Region.
- All remaining traffic decreased by a net 977 carloads.
The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for June 2017 and June 2016 by commodity group.
| Australian Operations(1): | June 2017 | June 2016 | Change | % Change | |||||||||
| Agricultural Products | 5,172 | 3,442 | 1,730 | 50.3% | |||||||||
| Coal & Coke | 27,336 | - | 27,336 | NM | |||||||||
| Intermodal | 5,090 | 5,128 | (38) | (0.7%) | |||||||||
| Metallic Ores | 2,974 | 592 | 2,382 | NM | |||||||||
| Minerals & Stone | 5,404 | 5,008 | 396 | 7.9% | |||||||||
| Petroleum Products | 22 | 29 | (7) | (24.1%) | |||||||||
| Total carloads | 45,998 | 14,199 | 31,799 | NM | |||||||||
| Carloads from New Railroads(2) | 27,336 | ||||||||||||
| Same-railroad carloads | 18,662 | 14,199 | 4,463 | 31.4% |
| (1) 51.1% owned by G&W as of December 1, 2016. |
| (2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 27,336 carloads of coal & coke traffic. |
The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on December 1, 2016.
- Metallic ores traffic increased 2,382 carloads primarily due to the re-opening of a manganese mine in March 2017 and an iron ore mine in July 2016.
- Agricultural products traffic increased 1,730 carloads, or 50.3%, primarily due to a stronger harvest in 2017.
- All remaining traffic increased by a net 351 carloads.
The table below sets forth U.K./European Operations carload information for June 2017 and June 2016 by commodity group.
| U.K./European Operations: | June |
June | Change | % | |||||||||
| Agricultural Products | 176 | 76 | 100 | NM | |||||||||
| Coal & Coke | 600 | 3,372 | (2,772) | (82.2%) | |||||||||
| Intermodal | 75,559 | 81,569 | (6,010) | (7.4%) | |||||||||
| Lumber & Forest Products | - | 45 | (45) | NM | |||||||||
| Minerals & Stone | 16,601 | 13,598 | 3,003 | 22.1% | |||||||||
| Total carloads | 92,936 | 98,660 | (5,724) | (5.8%) |
- Intermodal traffic decreased 6,010 carloads, or 7.4%, primarily due to decreased shipments in Continental Europe largely resulting from the elimination of unprofitable routes.
- Coal & coke traffic decreased 2,772 carloads, or 82.2%, primarily due to decreased shipments in the U.K.
- Minerals & stone traffic increased 3,003 carloads, or 22.1%, primarily due to increased shipments in Poland.
- All remaining traffic increased by a net 55 carloads.
Second Quarter of 2017 Traffic
The table below sets forth summary total carloads by segment for the second quarter of 2017 and the second quarter of 2016.
| Segment | Q2 2017 | Q2 2016 | Change | % | |||||||||
| North American Operations | 397,047 | 386,123 | 10,924 | 2.8% | |||||||||
| Australian Operations | 146,089 | 44,251 | 101,838 | NM | |||||||||
| U.K./European Operations | 266,946 | 276,542 | (9,596) | (3.5%) | |||||||||
| Total G&W Operations | 810,082 | 706,916 | 103,166 | 14.6% | |||||||||
| Carloads from New Railroads | 104,142 | ||||||||||||
| Same-railroad carloads | 705,940 | 706,916 | (976) | (0.1%) |
The table below sets forth North American Operations carload information for the second quarter of 2017 and the second quarter of 2016 by commodity group.
| North American Operations: | Q2 2017 | Q2 2016 | Change | % Change | |||||||||
| Agricultural Products | 52,953 | 49,330 | 3,623 | 7.3% | |||||||||
| Autos & Auto Parts | 9,184 | 8,146 | 1,038 | 12.7% | |||||||||
| Chemicals & Plastics | 44,814 | 44,875 | (61) | (0.1%) | |||||||||
| Coal & Coke | 46,501 | 46,237 | 264 | 0.6% | |||||||||
| Food & Kindred Products | 14,806 | 14,448 | 358 | 2.5% | |||||||||
| Intermodal | 2,367 | 12 | 2,355 | NM | |||||||||
| Lumber & Forest Products | 35,619 | 34,561 | 1,058 | 3.1% | |||||||||
| Metallic Ores | 4,249 | 6,122 | (1,873) | (30.6%) | |||||||||
| Metals | 34,695 | 35,881 | (1,186) | (3.3%) | |||||||||
| Minerals & Stone | 56,768 | 51,882 | 4,886 | 9.4% | |||||||||
| Petroleum Products | 23,912 | 25,462 | (1,550) | (6.1%) | |||||||||
| Pulp & Paper | 39,813 | 41,128 | (1,315) | (3.2%) | |||||||||
| Waste | 14,387 | 11,520 | 2,867 | 24.9% | |||||||||
| Other | 16,979 | 16,519 | 460 | 2.8% | |||||||||
| Total carloads | 397,047 | 386,123 | 10,924 | 2.8% | |||||||||
| Carloads from New Railroads(1) | 11,483 | ||||||||||||
| Same-railroad carloads | 385,564 | 386,123 | (559) | (0.1%) |
| (1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 897 carloads of autos & auto parts traffic, 1,486 carloads of chemicals & plastics traffic, 2,361 carloads of intermodal traffic, 657 carloads of lumber & forest products traffic, 3,506 carloads of minerals & stone traffic and 2,576 carloads from all other commodities. |
The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the second quarter of 2017 and the second quarter of 2016 by commodity group.
| Australian Operations(1): | Q2 2017 | Q2 2016 | Change | % Change | |||||||||
| Agricultural Products | 15,375 | 10,504 | 4,871 | 46.4% | |||||||||
| Coal & Coke | 92,659 | - | 92,659 | NM | |||||||||
| Intermodal | 15,159 | 15,320 | (161) | (1.1%) | |||||||||
| Metallic Ores | 8,854 | 2,018 | 6,836 | NM | |||||||||
| Minerals & Stone | 13,978 | 16,337 | (2,359) | (14.4%) | |||||||||
| Petroleum Products | 64 | 72 | (8) | (11.1%) | |||||||||
| Total carloads | 146,089 | 44,251 | 101,838 | NM | |||||||||
| Carloads from New Railroads(2) | 92,659 | ||||||||||||
| Same-railroad carloads | 53,430 | 44,251 | 9,179 | 20.7% |
| (1) 51.1% owned by G&W as of December 1, 2016. |
| (2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 92,659 carloads of coal & coke traffic. |
The table below sets forth U.K./European Operations carload information for the second quarter of 2017 and the second quarter of 2016 by commodity group.
| U.K./European Operations: | Q2 2017 | Q2 2016 | Change | % | |||||||||
| Agricultural Products | 746 | 448 | 298 | 66.5% | |||||||||
| Coal & Coke | 3,974 | 9,250 | (5,276) | (57.0%) | |||||||||
| Intermodal | 217,091 | 228,543 | (11,452) | (5.0%) | |||||||||
| Lumber & Forest Products | - | 135 | (135) | NM | |||||||||
| Metallic Ores | - | 93 | (93) | NM | |||||||||
| Minerals & Stone | 45,135 | 38,073 | 7,062 | 18.5% | |||||||||
| Total carloads | 266,946 | 276,542 | (9,596) | (3.5%) |
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, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.
About G&W
Genesee & Wyoming owns or leases 122 freight railroads worldwide that are organized in 10 operating regions with approximately 8,000 employees and 3,000 customers.
- G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 115 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, including in the Hunter Valley coal supply chain, the Northern Territory and South Australia, and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
- 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, intermodal services connecting Northern European seaports with key industrial regions in Germany, and regional rail services in the Netherlands and Belgium.
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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