Genesee & Wyoming Reports Traffic for March 2019

15 Apr by Vitaliy Dadalyan

Genesee & Wyoming Reports Traffic for March 2019

DARIEN, Conn.–(BUSINESS WIRE)–Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for March 2019.

G&W’s total traffic in March 2019 was 256,647 carloads, a decrease of 23,265 carloads, or 8.3%, compared with March 2018. G&W’s same railroad traffic in March 2019 decreased 10,958 carloads, or 4.1%, compared with G&W’s traffic in March 2018, excluding carloads from G&W’s former Continental European intermodal business (ERS), which was sold in June 2018, and short line lease expirations in Canada (Goderich-Exeter Railway (GEXR) and Southern Ontario Railway (SOR)) in the fourth quarter of 2018.

G&W’s traffic in the first quarter of 2019 was 761,513 carloads, a decrease of 49,800 carloads, or 6.1%, compared with the first quarter of 2018. G&W’s same railroad traffic in the first quarter of 2019 decreased 12,208 carloads, or 1.6%, compared with the first quarter of 2018, excluding carloads from ERS, which was sold in June 2018, and short line lease expirations in Canada (GEXR and SOR) in the fourth quarter of 2018. G&W’s North American traffic and operations were affected by severe winter weather in the U.S. and Canada and flooding in the U.S. in the first quarter of 2019.

The table below sets forth summary total carloads by segment.

Segment      

March
2019

   

March
2018

   

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

North American Operations 134,064 142,470 (8,406) (5.9%) (4.0%)
Australian Operations(2) 45,188 50,901 (5,713) (11.2%) (11.2%)
U.K./European Operations 77,395 86,541 (9,146) (10.6%) 0.5%
Total G&W Operations 256,647 279,912 (23,265) (8.3%) (4.1%)
(1) Excludes 2,811 carloads in March 2018 from short line leases in Canada (GEXR and SOR), which expired in the fourth quarter of 2018 and 9,496 carloads in March 2018 from ERS, which was sold in June 2018.
(2) 51.1% owned by G&W.
 

Highlights by Segment

  • North American Operations: Traffic in March 2019 was 134,064 carloads, a decrease of 5.9% compared with March 2018. Same railroad traffic in March 2019 decreased 4.0% compared with March 2018, excluding short line lease expirations in Canada, primarily due to decreased coal & coke and other commodity group traffic.
  • Australian Operations: Traffic in March 2019 was 45,188 carloads, a decrease of 11.2% compared with March 2018, primarily due to decreased agricultural products and coal & coke traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
  • U.K./European Operations: Traffic in March 2019 was 77,395 carloads, a decrease of 10.6% compared with March 2018. Same railroad traffic in March 2019 increased 0.5% compared with March 2018, excluding traffic from ERS, primarily due to increased petroleum products traffic in the U.K., partially offset by decreased minerals & stone traffic in U.K.

The table below sets forth North American Operations carload information by commodity group.

North American Operations:      

March
2019

   

March
2018

   

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

Agricultural Products 19,732 18,896 836 4.4% 7.1%
Autos & Auto Parts 3,134 3,156 (22) (0.7%) 4.8%
Chemicals & Plastics 14,465 15,319 (854) (5.6%) (1.9%)
Coal & Coke 15,372 19,572 (4,200) (21.5%) (21.5%)
Food & Kindred Products 4,692 5,313 (621) (11.7%) (8.8%)
Intermodal 1,784 1,181 603 51.1% 51.1%
Lumber & Forest Products 11,479 12,672 (1,193) (9.4%) (8.8%)
Metallic Ores 1,190 1,459 (269) (18.4%) (18.3%)
Metals 13,031 12,667 364 2.9% 6.0%
Minerals & Stone 17,021 17,550 (529) (3.0%) (1.2%)
Petroleum Products 8,689 8,199 490 6.0% 9.6%
Pulp & Paper 13,633 14,442 (809) (5.6%) (5.5%)
Waste 4,256 4,277 (21) (0.5%) 0.2%
Other 5,586 7,767 (2,181) (28.1%) (24.9%)
Total Carloads 134,064 142,470 (8,406) (5.9%) (4.0%)
(1) Excludes 2,811 carloads in March 2018 from short line leases in Canada (GEXR and SOR), which expired in the fourth quarter of 2018.
 

The following highlights relate to North American same railroad traffic:

  • Coal & coke traffic decreased 4,200 carloads, or 21.5%, primarily due to decreased shipments in G&W’s Midwest region largely due to delayed shipments associated with flooding.
  • Other commodity group traffic decreased 1,850 carloads, or 24.9%, primarily due to decreased empty car shipments in most G&W regions.
  • All remaining traffic increased by a net 455 carloads.
  • In addition to coal traffic, severe winter weather and flooding negatively affected traffic in minerals & stone, lumber & forest products and pulp & paper commodities.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations by commodity group.

Australian Operations(1):      

March
2019

   

March
2018

   

Total
Change

   

Total %
Change

Agricultural Products 1,741 4,829 (3,088) (63.9%)
Coal & Coke 31,435 34,508 (3,073) (8.9%)
Intermodal 4,166 4,463 (297) (6.7%)
Metallic Ores 1,968 1,866 102 5.5%
Minerals & Stone 5,851 5,218 633 12.1%
Petroleum Products 27 17 10 58.8%
Total Carloads 45,188 50,901 (5,713) (11.2%)
(1) 51.1% owned by G&W.
 
  • Agricultural products traffic decreased 3,088 carloads, or 63.9%, primarily due to a weaker 2018-2019 South Australia grain harvest.
  • Coal & coke traffic decreased 3,073 carloads, or 8.9%, primarily due to decreased shipments in the Hunter Valley.
  • All remaining traffic increased by a net 448 carloads.

The table below sets forth U.K./European Operations carload information by commodity group.

U.K./European Operations:      

March
2019

   

March
2018

   

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

Agricultural Products 110 318 (208) (65.4%) (65.4%)
Coal & Coke 2,284 1,843 441 23.9% 23.9%
Intermodal 58,582 67,590 (9,008) (13.3%) 0.8%
Minerals & Stone 15,360 16,790 (1,430) (8.5%) (8.5%)
Petroleum Products 1,059 1,059 NM NM
Total Carloads 77,395 86,541 (9,146) (10.6%) 0.5%
(1) Excludes 9,496 carloads in March 2018 from ERS, which was sold in June 2018.
 

The following highlights relate to U.K./European same railroad traffic:

  • Petroleum products traffic increased 1,059 due to new jet fuel shipments in the U.K.
  • Minerals & stone traffic decreased 1,430 carloads, or 8.5%, primarily due to decreased shipments in the U.K. in part due to a 3rd party derailment on the open access rail network.
  • All remaining traffic increased by a net 721 carloads.

First Quarter of 2019

The table below sets forth summary total carloads by segment.

Segment       Q1 2019     Q1 2018    

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

North American Operations 393,857 406,013 (12,156) (3.0%) (1.2%)
Australian Operations(2) 137,378 143,515 (6,137) (4.3%) (4.3%)
U.K./European Operations 230,278 261,785 (31,507) (12.0%) (0.6%)
Total G&W Operations 761,513 811,313 (49,800) (6.1%) (1.6%)
(1) Excludes 7,466 carloads in Q1 2018 from short line leases in Canada (GEXR and SOR), which expired in the fourth quarter of 2018 and 30,126 carloads in Q1 2018 from ERS, which was sold in June 2018.
(2) 51.1% owned by G&W.
 

The table below sets forth North American Operations carload information by commodity group.

North American Operations:       Q1 2019     Q1 2018    

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

Agricultural Products 54,255 53,764 491 0.9% 3.4%
Autos & Auto Parts 8,419 8,716 (297) (3.4%) 0.6%
Chemicals & Plastics 40,928 43,342 (2,414) (5.6%) (2.0%)
Coal & Coke 54,070 61,966 (7,896) (12.7%) (12.7%)
Food & Kindred Products 14,365 15,183 (818) (5.4%) (2.6%)
Intermodal 3,809 3,084 725 23.5% 23.5%
Lumber & Forest Products 32,945 36,250 (3,305) (9.1%) (8.6%)
Metallic Ores 3,602 4,396 (794) (18.1%) (18.0%)
Metals 37,250 35,238 2,012 5.7% 9.3%
Minerals & Stone 47,505 47,696 (191) (0.4%) 1.4%
Petroleum Products 27,068 25,660 1,408 5.5% 9.2%
Pulp & Paper 41,313 41,357 (44) (0.1%) 0.1%
Waste 12,974 11,981 993 8.3% 9.0%
Other 15,354 17,380 (2,026) (11.7%) (8.7%)
Total Carloads 393,857 406,013 (12,156) (3.0%) (1.2%)
(1) Excludes 7,466 carloads in Q1 2018 from short line leases in Canada (GEXR and SOR), which expired in the fourth quarter of 2018.
 

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations by commodity group.

Australian Operations(1):       Q1 2019     Q1 2018    

Total
Change

   

Total %
Change

Agricultural Products 4,260 13,112 (8,852) (67.5%)
Coal & Coke 99,502 96,856 2,646 2.7%
Intermodal 11,701 12,754 (1,053) (8.3%)
Metallic Ores 5,357 4,871 486 10.0%
Minerals & Stone 16,499 15,863 636 4.0%
Petroleum Products 59 59 0.0%
Total Carloads 137,378 143,515 (6,137) (4.3%)
(1) 51.1% owned by G&W.
 

The table below sets forth U.K./European Operations carload information by commodity group.

U.K./European Operations:       Q1 2019     Q1 2018    

Total
Change

   

Total %
Change

   

Same
Railroad %
Change(1)

Agricultural Products 533 966 (433) (44.8%) (44.8%)
Coal & Coke 8,284 5,895 2,389 40.5% 40.5%
Intermodal 181,002 210,780 (29,778) (14.1%) 0.2%
Minerals & Stone 37,473 44,144 (6,671) (15.1%) (15.1%)
Petroleum Products 2,986 2,986 NM NM
Total Carloads 230,278 261,785 (31,507) (12.0%) (0.6%)
(1) Excludes 30,126 carloads in Q1 2018 from ERS, which was sold in June 2018.
 

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

G&W owns or leases 120 freight railroads organized in eight locally managed operating regions with 8,000 employees serving 3,000 customers.

  • G&W’s six 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 serves New South Wales, 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 UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

Contacts

Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Senior Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com

This article published with permission from Business Wire