Trinity Industries, Inc. Announces Strategic Railcar Maintenance Network Expansion
May 20 2019 - 10:05AM
Business Wire
New facility expected to enhance customer
service levels by increasing captive maintenance solutions
Trinity Industries, Inc. (NYSE: TRN) (“Trinity”) announced today
that its wholly owned subsidiary, TrinityRail Maintenance Services,
Inc. (“TRMS”), has agreed to purchase land for the construction of
a new railcar maintenance services facility in Shell Rock,
Iowa.
TRMS has selected the 230-acre site for its expansion, which is
expected to employ over 250 people following Trinity’s planned
capital investment of approximately $60 million in the Butler
County, Iowa, community. Upon completion, the new facility will
provide a full range of railcar services, including repairs and
maintenance, coatings, cleaning, inspections, and testing. The
site’s co-location with the Iowa Northern Railroad and optimal
access to the Class-1 railroad network, including strategic access
to the upper Midwest, were significant factors in Trinity’s
decision to build a new railcar maintenance facility in Shell
Rock.
“TrinityRail Maintenance Services, Inc. is proud to announce the
development of a new facility that will provide railcar maintenance
and services. This full service facility will expand our internal
network and operational flexibility in a key geographic location,”
said Eric Marchetto, Senior Vice President and Group President of
TrinityRail®. “This expansion will enhance our customers’
experience by delivering best-in-class turn times for maintenance
events within the railcar industry, as well as consistent quality
and compliance standards within our maintenance network.”
Mr. Marchetto continued, “This investment will help us achieve
our near-term goal to internally service approximately 50% of our
maintenance events for our growing fleet of 123,000 owned and
managed railcars. This initiative is also aligned with our focus to
employ various operational levers to improve the financial returns
of our business.”
The Company anticipates the new facility to be operational by
the end of 2020 and to be accretive to consolidated financial
results by the end of 2021, including anticipated start-up costs.
The development is not expected to impact the Company’s 2019
earnings per share guidance. Approximately half of the investment
for the new facility is expected to be incurred in 2019 and was not
included in the Company’s prior 2019 guidance for capital
expenditures.
Company Description
Trinity Industries, Inc., headquartered in Dallas, Texas, owns
businesses that are leading providers of rail transportation
products and services in North America. Our rail-related businesses
market their railcar products and services under the trade name
TrinityRail®. The TrinityRail integrated platform provides railcar
leasing and management services, as well as railcar manufacturing,
maintenance and modifications. Trinity also owns businesses engaged
in the manufacture of products used on the nation’s roadways and in
traffic control, as well as logistical and transportation
businesses that provide support services to a variety of industrial
manufacturers. Trinity reports its financial results in three
principal business segments: the Railcar Leasing and Management
Services Group, the Rail Products Group, and the All Other Group.
For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts,
are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements about Trinity's estimates,
expectations, beliefs, intentions or strategies for the future, and
the assumptions underlying these forward-looking statements,
including, but not limited to, future financial and operating
performance, future opportunities and any other statements
regarding events or developments that Trinity believes or
anticipates will or may occur in the future. Trinity uses the words
“anticipates,” “assumes,” “believes,” “estimates,” “expects,”
“intends,” “forecasts,” “may,” “will,” “should,” “guidance,”
“projected,” “outlook,” and similar expressions to identify these
forward-looking statements. Forward-looking statements speak only
as of the date of this release, and Trinity expressly disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any
change in Trinity’s expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement
is based, except as required by federal securities laws.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from historical
experience or our present expectations, including but not limited
to risks and uncertainties regarding economic, competitive,
governmental, and technological factors affecting Trinity’s
operations, markets, products, services and prices, and such
forward-looking statements are not guarantees of future
performance. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see “Risk Factors” and
“Forward-Looking Statements” in Trinity’s Annual Report on Form
10-K for the most recent fiscal year, as may be revised and updated
by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current
Reports on Form 8-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20190520005468/en/
Jessica GreinerVice President, Investor Relations and
CommunicationsTrinity Industries, Inc.(Investors)
214/631-4420(Media Line) 214/589-8909
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