Genesee & Wyoming (GWR) Reports 8.5% Drop in Traffic for July 2016
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Genesee & Wyoming Inc. (G&W) (NYSE: GWR) reported traffic volumes for July 2016.
G&W’s traffic in July 2016 was 242,950 carloads, a decrease of 22,451 carloads, or 8.5%, compared with July 2015.
The table below sets forth summary total carloads by segment for July 2016 and July 2015.
|Segment||July 2016||July 2015||Change||% Change|
|North American Operations||131,140||139,335||(8,195)||(5.9%)|
|Total G&W Operations||242,950||265,401||(22,451)||(8.5%)|
July 2016 Highlights by Segment
- North American Operations: Traffic in July 2016 was 131,140 carloads, a decrease of 5.9% compared with July 2015. The decrease was primarily due to reduced shipments of metals, minerals & stone, coal & coke and pulp & paper traffic, partially offset by increased agricultural products traffic.
- Australian Operations: Traffic in July 2016 was 15,099 carloads, a decrease of 13.8% compared with July 2015. The decrease was primarily due to reduced agricultural products traffic.
- U.K./European Operations: Traffic in July 2016 was 96,711 carloads, a decrease of 10.9% compared with July 2015. The decrease was primarily due to reduced intermodal, coal & coke and minerals & stone traffic.
The table below sets forth North American Operations carload information for July 2016 and July 2015 by commodity group.
|North American Operations:||July 2016||July 2015||Change||% Change|
|Autos & Auto Parts||2,008||2,227||(219)||(9.8%)|
|Chemicals & Plastics||14,007||14,193||(186)||(1.3%)|
|Coal & Coke||20,047||21,957||(1,910)||(8.7%)|
|Food & Kindred Products||4,782||4,935||(153)||(3.1%)|
|Lumber & Forest Products||11,309||11,674||(365)||(3.1%)|
|Minerals & Stone||17,938||20,084||(2,146)||(10.7%)|
|Pulp & Paper||14,094||15,577||(1,483)||(9.5%)|
- North American Operations traffic decreased 8,195 carloads, or 5.9%.
- Metals traffic decreased 2,463 carloads, or 21.0%, due to decreased shipments of scrap steel and coils.
- Minerals & stone traffic decreased 2,146 carloads, or 10.7%, primarily due to decreased shipments of construction aggregates in G&W’s Central Region and decreased frac sand and salt in G&W’s Northeast Region.
- Coal & coke traffic decreased 1,910 carloads, or 8.7%, primarily due to decreased shipments of utility coal in G&W’s Midwest and Northeast regions.
- Pulp & paper traffic decreased 1,483 carloads, or 9.5%, primarily due to decreased shipments across most of G&W’s regions.
- Agricultural products traffic increased 2,222 carloads, or 13.3%, primarily due to increased grain shipments in G&W’s Midwest and Mountain West regions and DDG shipments in G&W’s Pacific Region.
- All remaining traffic decreased by a net 2,415 carloads.
The table below sets forth Australian Operations carload information for July 2016 and July 2015 by commodity group.
|Australian Operations:||July 2016||July 2015||Change||% Change|
|Minerals & Stone||4,832||5,231||(399)||(7.6%)|
The decrease in Australian Operations traffic was primarily due to reduced agricultural products traffic primarily as a result of low global crop prices and customer operational issues.
The table below sets forth U.K./European Operations carload information for July 2016 and July 2015 by commodity group.
|U.K./European Operations:||July 2016||July 2015||Change||% Change|
|Coal & Coke||2,854||6,259||(3,405)||(54.4%)|
|Minerals & Stone||14,462||17,173||(2,711)||(15.8%)|
- U.K./European Operations traffic decreased 11,847 carloads, or 10.9%.
- Intermodal traffic decreased 5,881 carloads, or 6.9%, primarily in the U.K.
- Coal & coke traffic decreased 3,405 carloads, or 54.4%, primarily due to decreased shipments in the U.K. and Poland.
- Minerals & stone traffic decreased 2,711 carloads, or 15.8%, primarily due to decreased shipments in the U.K.
- All remaining traffic increased by a net 150 carloads.
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 eight 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.
Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 10 operating regions with approximately 7,200 employees and more than 2,800 customers.
- G&W’s eight 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./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 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.
Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com
Source: Genesee & Wyoming Inc.
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