LOS ANGELES Greenbrier
Cos. saw its quarterly net income fall sharply, and the rail
car manufacturer has vowed to sell off additional assets in
order to "liberate" capital.
The Lake Oswego, Ore.-based
company posted net income of $13.84 million for the three
months ended Feb. 28, down 21.7 percent from $17.67 million in
the same period a year earlier on revenue that fell 7.6 percent
to $423.17 million. For the fiscal first half, net income fell
24.6 percent to $24.27 million from $32.19 million a year
earlier on revenue that dipped 2.1 percent to $838.54
Greenbrier delivered 2,700 rail
cars during its fiscal second quarter, down from 2,900 in the
fiscal first quarter ended Nov. 30the third consecutive
quarterly declinedue to lower deliveries in Europe.
Greenbrier, which last year
fought off a $597-million takeover attempt by investor Carl
Icahns American Railcar Industries Inc., said it was
taking steps to improve its profitability and has targeted a
minimum 2-percent gross "margin enhancement" by its fiscal year
ending Aug. 31, 2014.
"We intend to liberate $100
million of capital by no later than the end of fiscal 2014 by
selling non-core or underperforming operations," president and
chief executive officer William A. Furman said, citing
operations in Greenbriers "underperforming" wheel
services, refurbishment and parts segment as likely for
Greenbriers intention to sell its Elizabeth, Ky.,
wheelset operations as the "first of many steps" in this
effort. The sale to Canton, Ohio-based Timken Co. for an
undisclosed amount (
amm.com, March 1)representing substantially
all of the companys roller bearings parts
businessalso includes an agreement for Timken to supply
Greenbrier with reconditioned and new bearings.
Greenbriers rail car
backlog on Feb. 28 had grown to 11,700 units with an estimated
value of $1.3 billion from 9,700 units valued at $1.11 billion
three months earlier. Its marine backlog was $9 million,
although the company said it has a letter of intent for 15
barges valued at $60 million.