Trinity Industries, Inc. reported results for the 2017 second quarter ending June 30, with a net income of $51.1 million compared to $94.6 million in the 2016 second quarter. The company reported earnings per common diluted share of $0.33 compared to $0.62 in last year’s second quarter. Revenues for the quarter totaled $905.5 million compared to $1.2 billion for the same quarter of 2016.
“Our financial results for the second quarter of 2017 came in slightly ahead of our expectations,” stated Trinity Chairman, CEO and President Timothy R. Wallace. “Our markets remain highly competitive as supply and demand imbalances continue to impact many of our end markets. Generally speaking, when industry-order levels reach low points we begin to see strategic purchases occurring in our businesses. During the second quarter, this occurred in our railcar manufacturing business.”
In the second quarter of 2017, the Rail Group reported revenues of $465.9 million compared to revenues of $693.2 million in the 2016 second quarter. Operating profit for the group in the second quarter was $37 million compared to last year’s second quarter operating profit of $88.8 million. The decrease in revenues and operating profit was primarily due to significantly lower railcar deliveries.
The Rail Group shipped 4,055 railcars and received orders for 5,705 railcars during the second quarter. The group had a backlog of $2.7 billion as of June 30, 2017, representing 27,580 railcars, compared to a backlog of $2.7 billion as of March 31, 2017, representing 26,420 railcars.
The Railcar Leasing and Management Services Group reported revenues of $185 million for the 2017 second quarter, up 3.6 percent compared to revenues in the 2016 second quarter. Railcar operating profit for this group was $85.6 million in the quarter up by 14.9 percent from the same quarter last year. The increases in revenues and operating profit were primarily due to net additions to the lease fleet, and lower fleet maintenance and compliance expenses. This was partially offset by lower average lease rates.
“I am very pleased with the order level our Rail Group received. Our Leasing and Construction Products businesses generated solid results during the quarter,” added Wallace.
Trinity Industries anticipates that, for the 2017 full year, earnings per common diluted share will be $1.10 to $1.30 compared to its previous guidance of between $1.00 and $1.25 per share.