Reuters: Market News: UPDATE 3-Greenbrier warns on railcar deliveries, shares fall

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UPDATE 3-Greenbrier warns on railcar deliveries, shares fall Apr 9th 2012, 17:49 Mon Apr 9, 2012 6:51am EDT * Q2 EPS $0.57 vs estimates of $0.47 * New orders more than double to 3,600 units * Total backlog valued at $1.1 bln as of Feb April 9 (Reuters) - Greenbrier Cos Inc posted quarterly results above market estimates as deliveries and margins rose, and the railcar maker forecast a strong second half. The company, which also repairs and leases out railcars, said it expects revenue and adjusted EBITDA in the second half of fiscal 2012 to be higher than the first half. Demand for new railcars has been rising over the last year due to strong demand from the energy sector, prompting railcar manufacturers to ramp up production and successfully increase prices. "Energy transformation is afoot in North America," Greenbrier Chief Executive William Furman said last year, adding that the hunt for oil and natural gas has increased demand for the company's hopper and tank cars -- those that carry frack sand and oil, respectively. The Lake Oswego, Oregon-based company has increased production for six straight quarters as orders spiked. Railcar deliveries during Greenbrier's second quarter were 3,700 units, up almost 70 percent from a year ago. New orders more than doubled to 3,600 units, bringing the total backlog to $1.1 billion as of February. Subsequent to the December-February quarter end, the company said it received orders for 2,300 additional units valued at $270 million. Greenbrier's second-quarter net income was $17.7 million, or 57 cents a share, compared with $550,000, or 2 cents a share, a year ago. Revenue jumped 60 percent to $458.2 million. Analysts had expected earnings of 47 cents a share on revenue of $444.5 million, according to Thomson Reuters I/B/E/S. Manufacturing gross margins for the quarter were 9.2 percent of revenue, compared with the year-ago 5.8 percent. "The increase in margin is attributable to efficiencies gained by operating at higher production rates and more favorable customer pricing in the current period," Greenbrier said in a statement. The company's shares, which have almost doubled in value since October 2011, closed at $19.70 on Thursday on the New York Stock Exchange. Link this Share this Digg this Email Reprints

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