Greenbrier Cos. (GBX) Tops Q3 EPS by 1c; Guides FY13 Revs Below Views
Greenbrier Cos. (NYSE: GBX) reported Q3 EPS of $0.56, $0.01 better than the analyst estimate of $0.55. Revenue for the quarter came in at $433.7 million versus the consensus estimate of $503.08 million.
New railcar deliveries were 2,500 units in the third quarter.
Sees FY2013 revenue of $1.75-$1.80 billion, versus the consensus of $1.87 billion.
Strategic initiatives update: On April 4, 2013, Greenbrier presented its plan to increase gross margins by at least 200 basis points and reduce capital employed in its operations by at least $100 million before the end of its fiscal year 2014. The timing of the capital reduction goal has been accelerated to February 28, 2014. Definitive structural and leadership changes to its underperforming Wheels, Repair & Parts segment were announced today in a separate press release. These actions include the sale or closure of eight facilities and a commitment to significant improvements to six other underperforming sites, as well as the appointment of two new leaders of the segment. This reorganization is expected to improve gross margin and yield at least $25 million of capital by December 2013. The remaining $75 million of our capital liberation goals consists of working capital improvements of $25 million, primarily in Manufacturing, and refinements to our leasing model which will remove leasing assets from our balance sheet and generate at least $50 million of capital.
For earnings history and earnings-related data on Greenbrier Cos. (GBX) click here.
New railcar deliveries were 2,500 units in the third quarter.
Sees FY2013 revenue of $1.75-$1.80 billion, versus the consensus of $1.87 billion.
Strategic initiatives update: On April 4, 2013, Greenbrier presented its plan to increase gross margins by at least 200 basis points and reduce capital employed in its operations by at least $100 million before the end of its fiscal year 2014. The timing of the capital reduction goal has been accelerated to February 28, 2014. Definitive structural and leadership changes to its underperforming Wheels, Repair & Parts segment were announced today in a separate press release. These actions include the sale or closure of eight facilities and a commitment to significant improvements to six other underperforming sites, as well as the appointment of two new leaders of the segment. This reorganization is expected to improve gross margin and yield at least $25 million of capital by December 2013. The remaining $75 million of our capital liberation goals consists of working capital improvements of $25 million, primarily in Manufacturing, and refinements to our leasing model which will remove leasing assets from our balance sheet and generate at least $50 million of capital.
For earnings history and earnings-related data on Greenbrier Cos. (GBX) click here.