GWR Genesee and Wyoming Inc

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for July 2017.

G&W’s traffic in July 2017 was 277,140 carloads, an increase of 34,190 carloads, or 14.1%, compared with July 2016. G&W’s same-railroad traffic in July 2017 was 239,365 carloads, a decrease of 3,585 carloads, or 1.5%, compared with July 2016.

The table below sets forth summary total carloads by segment for July 2017 and July 2016.

                Segment July 2017 July 2016 Change % Change North American Operations 133,822 131,140 2,682 2.0% Australian Operations(1) 52,328 15,099 37,229 NM U.K./European Operations 90,990 96,711 (5,721) (5.9%) Total G&W Operations 277,140 242,950 34,190 14.1% Carloads from New Railroads 37,775 Same-railroad carloads 239,365 242,950 (3,585) (1.5%) (1) 51.1% owned by G&W as of December 1, 2016.  

July 2017 Highlights by Segment

• North American Operations: Traffic in July 2017 was 133,822 carloads, an increase of 2.0% compared with July 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 1.0%, primarily due to decreased agricultural products traffic, partially offset by increased metals and coal & coke traffic.
• Australian Operations: Traffic in July 2017 was 52,328 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic increased 22.4%, primarily due to increased agricultural products and metallic ores 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 July 2017 was 90,990 carloads, a decrease of 5.9% compared with July 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 July 2017 and July 2016 by commodity group.

                North American Operations: July 2017 July 2016 Change % Change Agricultural Products 15,323 18,974 (3,651) (19.2%) Autos & Auto Parts 2,521 2,008 513 25.5% Chemicals & Plastics 14,564 14,007 557 4.0% Coal & Coke 21,090 20,047 1,043 5.2% Food & Kindred Products 4,499 4,782 (283) (5.9%) Intermodal 1,001 - 1,001 NM Lumber & Forest Products 11,847 11,309 538 4.8% Metallic Ores 1,534 1,425 109 7.6% Metals 10,419 9,240 1,179 12.8% Minerals & Stone 18,518 17,938 580 3.2% Petroleum Products 8,483 8,120 363 4.5% Pulp & Paper 14,511 14,094 417 3.0% Waste 5,103 4,518 585 12.9% Other 4,409 4,678 (269) (5.8%) Total carloads 133,822 131,140 2,682 2.0% Carloads from New Railroads(1) 3,931 Same-railroad carloads 129,891 131,140 (1,249) (1.0%)

 

(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include P&W and HOG. These railroads contributed 468 carloads of chemicals & plastics traffic, 1,001 carloads of intermodal traffic, 406 carloads of lumber & forest products traffic, 1,092 carloads of minerals & stone traffic, 183 carloads of waste traffic and 781 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.

• Agricultural products traffic decreased 3,795 carloads, or 20.0%, primarily due to decreased shipments in G&W’s Mountain West Region due to drought conditions in South Dakota as well as reduced exports of dried distillers’ grains (DDGs) in G&W’s Pacific Region.
• Metals traffic increased 1,067 carloads, or 11.5%, primarily due to increased shipments of finished steel and pipe in G&W’s Northeast Region, partially offset by decreased shipments of scrap and pig iron in G&W’s Southern Region.
• Coal & coke traffic increased 1,043 carloads, or 5.2%, primarily due to increased shipments in G&W’s Midwest Region, partially offset by decreased shipments in G&W’s Northeast and Mountain West regions.
• All remaining traffic increased by a net 436 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for July 2017 and July 2016 by commodity group.

                Australian Operations(1): July 2017 July 2016 Change % Change Agricultural Products 5,163 2,984 2,179 73.0% Coal & Coke 33,844 - 33,844 NM Intermodal 5,396 5,315 81 1.5% Metallic Ores 3,287 1,942 1,345 69.3% Minerals & Stone 4,607 4,832 (225) (4.7%) Petroleum Products 31 26 5 19.2% Total carloads 52,328 15,099 37,229 NM Carloads from New Railroads(2) 33,844 Same-railroad carloads 18,484 15,099 3,385 22.4%

 

(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 33,844 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.

• Agricultural products traffic increased 2,179 carloads, or 73.0%, primarily due to a stronger harvest in 2017.
• Metallic ores traffic increased 1,345 carloads, or 69.3%, primarily due to the re-opening of a manganese mine in March 2017.
• All remaining traffic decreased by a net 139 carloads.

The table below sets forth U.K./European Operations carload information for July 2017 and July 2016 by commodity group.

                U.K./European Operations: July 2017 July 2016 Change % Change Agricultural Products 108 186 (78) (41.9%) Coal & Coke 925 2,854 (1,929) (67.6%) Intermodal 73,276 79,209 (5,933) (7.5%) Minerals & Stone 16,681 14,462 2,219 15.3% Total carloads 90,990 96,711 (5,721) (5.9%)  

• Intermodal traffic decreased 5,933 carloads, or 7.5%, due to reduced shipments in the U.K. as a result of the expected volume impact from a cyber-attack on a customer’s IT systems and in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS.
• Coal & coke traffic decreased 1,929 carloads, or 67.6%, primarily due to decreased shipments in the U.K.
• Minerals & stone traffic increased 2,219 carloads, or 15.3%, primarily due to increased shipments in Poland.
• All remaining traffic decreased by a net 78 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, 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 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, including operating the 1,400-mile Tarcoola-to-Darwin rail line. As of December 1, 2016, G&W’s Australia Region is 51.1% owned by us and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
• 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, 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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Genesee & Wyoming Inc.Thomas D. Savage, 1-203-202-8900Senior Vice President – Corporate Development & TreasurerWeb Site: http://www.gwrr.com