Trinity Industries, Inc. reported results for the 2017 first quarter ending March 31, with a net income of $46 million compared to $97.2 million in the 2016 first quarter. The company reported earnings per common diluted share of $0.30 compared to $0.64 in last year’s first quarter. Revenues for the quarter totaled $877.3 million compared to $1.2 billion for the same quarter of 2016.
“The performance of our businesses during the first quarter of 2017 was in line with our expectations," stated Trinity Chairman, CEO and President Timothy R. Wallace. “The results of our Rail and Inland Barge Groups reflect substantial declines in production volumes compared to last year as our railcar and barge manufacturing businesses continue to face challenging market conditions. During the first quarter, our leasing company generated strong operating earnings, increasing operating profit by 14.6 percent compared to last year.”
In the first quarter of 2017, the Rail Group reported revenues of $478.3 million compared to revenues of $846.9 million in the 2016 first quarter. Operating profit for the group in the first quarter was $50.7 million compared to last year’s operating profit of $157.2 million. The decrease in revenues and profit was primarily due to significantly lower railcar deliveries.
The Rail Group shipped 3,770 railcars and received orders for 970 railcars during the first quarter. The group had a backlog of $2.7 billion as of March 31, 2017, representing 26,420 railcars, compared to a backlog of $3 billion as of December 31, 2016, representing 29,220 railcars.
The Railcar Leasing and Management Services Group reported revenues of $178.9 million for the 2017 first quarter compared to revenues of $178.5 million during the 2016 first quarter.
Railcar operating profit for this group was $85 million in the 2017 first quarter compared to an operating profit of $74.2 million last year. The increase in operating profit was primarily due to net additions to the lease fleet and lower maintenance and compliance expenses, partially offset by the effect of lower average lease rates and a reduced volume of sales of leased railcars.
Trinity Industries anticipates that for the 2017 full year earnings per common diluted share will be $1.00 and $1.25 compared to its previous guidance of between $1.00 and $1.35 per share.
“We continue to observe a unique mixture of uncertainty and optimism in the majority of the markets we serve. The flexible nature of Trinity’s business model positions our company to respond when market conditions shift,” concluded Wallace.