Greenbrier Cos. Inc. has fallen sharply into the red. The rail
car and barge builder posted a net loss of $56.03 million in
its fiscal third quarter ended May 31 in contrast to net income
of $19.12 million in the same period last year on revenue that
fell 14.6 percent to $433.66 million.
negatively affected by a goodwill impairment charge of $71.8
million related to the companys wheels, repair and parts
business. The Lake Oswego, Ore.-based company, which said it
will make improvements at six of its 38 facilities and close or
sell eight underperforming repair shops, has appointed a new
manager to turn around the troubled facilities, which employ
more than a third of the segments workforce and consume a
substantial amount of capital.
Greenbrier revised its
forecast build rate downward for fiscal 2013, citing a slow
ramp-up of tank car production at its Mexican plant and
lower-than-anticipated deliveries of intermodal cars.
However, "we are encouraged by the growth of our
diverse backlog and robust order activity, with orders in the
third quarter for 5,500 rail car units" valued at $575 million,
president and chief executive officer William A. Furman said
during an earnings conference call July 2. "Since quarter end,
we have received orders for an additional 2,100 rail car units,
including an order for 1,500 double-stack intermodal
About 37 percent of
the 7,600 rail cars ordered since March 1 are for tank cars to
be delivered to North American customers. The rest are covered
hoppers, automotive carriers, mill gondola cars and
double-stack intermodal cars.
brighter prospects for intermodal rail car activity and
downstream energy-related rail car products, such as plastics,
in fiscal 2014," Furman said. "Our marine outlook is also
improving, driven by strong customer inquiries related to
transportation of crude oil by barge."
Greenbrier expects to
meet production targets in its fiscal fourth quarter and fiscal
2014 first quarter, Furman said.
Industrywide, he said
that "tank car fleet additions in North America over the past
two years have been robust, emerging from the crude-by-rail
story and the North American energy revolution."