As we began 2013, we expect our rail group to be in the early stages of a long production run of consistent product that serve these markets. We expect the similar situation of long production runs to continue in the area of our barge business to serve this markets.
A number of our other businesses which provide internal support and manufacture products for these industries should also obtain long production runs and generate operating leverage.
Trinity’s Railcar Leasing and Management Services group performed well during the second quarter obtaining higher lease rates and securing longer lease terms. The size and product mix of our lease fleet provides the opportunity to pursue secondary market sales when certain industry characteristics are favorable. This group will continue to pursue opportunities to capitalize on strong demand for certain types of secondary market sales of leased railcars.
I’m pleased that our Energy Equipment group reported a profit during the second quarter. I’m confident that our team is moving in the right direction. We will adjust our production capacity for wind towers with industry demand and shift access capacity whenever possible to other industry products.
The federal highway funding legislation that was recently implemented extends the current levels of highway funding for two more years. This should be a catalyst for our construction products businesses which serve this industry.
Our balance sheet is in great shape and our overall financial position is strong. The business environment appears to be shaping up nicely into 2013 for our businesses that serve the oil, gas and chemicals industries.
We are well-positioned to capitalize on additional opportunities for growth in a variety of industries. We’ve been very delivered during the past decade to position Trinity in a way that allows us to pursue a variety of opportunities in various industries.
Our business is a very experienced and shifting resources as demand changes, aggressively pursuing orders to establish production runs and generating operating leverage, which leads to margin improvement during periods of consistent production levels. Our manufacturing flexibility is one of Trinity’s core competencies and we plan to utilize it as we see opportunity surface within the industries we serve.
Overall, our second quarter performance reflects the strength of our multi-industry platform, the benefits provided by our market leadership positions, our commitment to operational excellence and the talents and hard work of our people.
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