Genesee & Wyoming (GWR) Traffic Fell 0.4% in August 2016

September 14, 2016 6:46 AM EDT

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Genesee & Wyoming Inc. (NYSE: GWR) reported traffic volumes for August 2016.

G&W’s traffic in August 2016 was 252,068 carloads, a decrease of 887 carloads, or 0.4%, compared with August 2015.

G&W’s traffic in the third quarter of 2016 through August was 495,018 carloads, a decrease of 23,338 carloads, or 4.5%, compared with the third quarter of 2015 through August.

The table below sets forth summary total carloads by segment for August 2016 and August 2015.

Segment

August2016

August2015

Change

%Change

North American Operations 138,530 142,571 (4,041) (2.8%)
Australian Operations 14,349 16,227 (1,878) (11.6%)
U.K./European Operations 99,189 94,157 5,032 5.3%
Total G&W Operations 252,068 252,955 (887) (0.4%)

August 2016 Highlights by Segment

  • North American Operations: Traffic in August 2016 was 138,530 carloads, a decrease of 2.8% compared with August 2015. The decrease was primarily due to reduced coal & coke traffic.
  • Australian Operations: Traffic in August 2016 was 14,349 carloads, a decrease of 11.6% compared with August 2015. The decrease was primarily due to reduced agricultural products traffic.
  • U.K./European Operations: Traffic in August 2016 was 99,189 carloads, an increase of 5.3% compared with August 2015. The increase was primarily due to increased intermodal and minerals & stone traffic, partially offset by reduced coal & coke traffic.

The table below sets forth North American Operations carload information for August 2016 and August 2015 by commodity group.

North American Operations:

August2016

August2015

Change

% Change

Agricultural Products 17,559 17,632 (73) (0.4%)
Autos & Auto Parts 2,447 2,455 (8) (0.3%)
Chemicals & Plastics 14,933 14,987 (54) (0.4%)
Coal & Coke 21,993 25,099 (3,106) (12.4%)
Food & Kindred Products 5,312 5,142 170 3.3%
Intermodal 18 - 18 NM
Lumber & Forest Products 12,269 11,319 950 8.4%
Metallic Ores 1,752 2,174 (422) (19.4%)
Metals 11,383 11,587 (204) (1.8%)
Minerals & Stone 17,936 18,715 (779) (4.2%)
Petroleum Products 8,728 8,902 (174) (2.0%)
Pulp & Paper 14,426 14,856 (430) (2.9%)
Waste 4,528 3,705 823 22.2%
Other 5,246 5,998 (752) (12.5%)
Total carloads 138,530 142,571 (4,041) (2.8%)
  • North American Operations traffic decreased 4,041 carloads, or 2.8%.
  • Coal & coke traffic decreased 3,106 carloads, or 12.4%, primarily due to decreased shipments of utility coal in G&W’s Central and Northeast regions.
  • All remaining traffic decreased by a net 935 carloads.

The table below sets forth Australian Operations carload information for August 2016 and August 2015 by commodity group.

Australian Operations:

August2016

August2015

Change

% Change

Agricultural Products 2,744 3,951 (1,207) (30.5%)
Intermodal 5,186 5,268 (82) (1.6%)
Metallic Ores 1,637 1,840 (203) (11.0%)
Minerals & Stone 4,758 5,139 (381) (7.4%)
Petroleum Products 24 29 (5) (17.2%)
Total carloads 14,349 16,227 (1,878) (11.6%)

The decrease in Australian Operations traffic was primarily due to reduced agricultural products traffic primarily as a result of low global crop prices as well as shipping disruptions due to localized flooding.

The table below sets forth U.K./European Operations carload information for August 2016 and August 2015 by commodity group.

U.K./European Operations:

August 2016

August 2015

Change

% Change

Agricultural Products 220 95 125 NM
Coal & Coke 3,147 5,959 (2,812) (47.2%)
Intermodal 80,332 76,248 4,084 5.4%
Minerals & Stone 15,490 11,855 3,635 30.7%
Total carloads 99,189 94,157 5,032 5.3%
  • U.K./European Operations traffic increased 5,032 carloads, or 5.3%.
  • Intermodal traffic increased 4,084 carloads, or 5.4%, primarily due to increased shipments in the U.K.
  • Minerals & stone traffic increased 3,635 carloads, or 30.7%, primarily due to increased shipments in Poland and the U.K.
  • Coal & coke traffic decreased 2,812 carloads, or 47.2%, primarily due to decreased shipments in the U.K. and Poland.
  • All remaining traffic increased by a net 125 carloads.

Third Quarter of 2016 Through August Traffic

The table below sets forth summary total carloads by segment for the third quarter of 2016 through August and the third quarter of 2015 through August.

Segment

QTD Aug 2016

QTD Aug 2015

Change

% Change

North American Operations 269,670 281,906 (12,236) (4.3%)
Australian Operations 29,448 33,735 (4,287) (12.7%)
U.K./European Operations 195,900 202,715 (6,815) (3.4%)
Total G&W Operations 495,018 518,356 (23,338) (4.5%)

The table below sets forth North American Operations carload information for the third quarter of 2016 through August and the third quarter of 2015 through August by commodity group.

North American Operations:

QTD Aug 2016

QTD Aug 2015

Change

% Change

Agricultural Products 36,533 34,384 2,149 6.3%
Autos & Auto Parts 4,455 4,682 (227) (4.8%)
Chemicals & Plastics 28,940 29,180 (240) (0.8%)
Coal & Coke 42,040 47,056 (5,016) (10.7%)
Food & Kindred Products 10,094 10,077 17 0.2%
Intermodal 18 6 12 NM
Lumber & Forest Products 23,578 22,993 585 2.5%
Metallic Ores 3,177 4,385 (1,208) (27.5%)
Metals 20,623 23,290 (2,667) (11.5%)
Minerals & Stone 35,874 38,799 (2,925) (7.5%)
Petroleum Products 16,848 17,000 (152) (0.9%)
Pulp & Paper 28,520 30,433 (1,913) (6.3%)
Waste 9,046 7,765 1,281 16.5%
Other 9,924 11,856 (1,932) (16.3%)
Total carloads 269,670 281,906 (12,236) (4.3%)

The table below sets forth Australian Operations carload information for the third quarter of 2016 through August and the third quarter of 2015 through August by commodity group.

Australian Operations:

QTD Aug 2016

QTD Aug 2015

Change

% Change

Agricultural Products 5,728 8,374 (2,646) (31.6%)
Intermodal 10,501 10,889 (388) (3.6%)
Metallic Ores 3,579 4,034 (455) (11.3%)
Minerals & Stone 9,590 10,370 (780) (7.5%)
Petroleum Products 50 68 (18) (26.5%)
Total carloads 29,448 33,735 (4,287) (12.7%)

The table below sets forth U.K./European Operations carload information for the third quarter of 2016 through August and the third quarter of 2015 through August by commodity group.

U.K./European Operations:

QTD Aug 2016

QTD Aug 2015

Change

% Change

Agricultural Products 406 131 275 NM
Coal & Coke 6,001 12,218 (6,217) (50.9%)
Intermodal 159,541 161,338 (1,797) (1.1%)
Minerals & Stone 29,952 29,028 924 3.2%
Total carloads 195,900 202,715 (6,815) (3.4%)

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, 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.


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