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Genesee & Wyoming Reports Results For The Second Quarter Of 2012

Stock quotes in this article: GWR 

Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported net income in the second quarter of 2012 of $36.4 million, compared with net income of $31.1 million in the second quarter of 2011. GWI's diluted earnings per share (EPS) in the second quarter of 2012 were $0.84 with 43.2 million weighted average shares outstanding, compared with diluted EPS of $0.73 with 42.8 million weighted average shares outstanding in the second quarter of 2011.

GWI’s effective tax rate was 33.6% in the second quarter of 2012 compared with 26.8% in the second quarter of 2011. The higher tax rate in the second quarter of the current year was driven primarily by the expiration of the U.S. short line tax credit on December 31, 2011.

In the second quarter of 2012 and 2011, GWI's results included certain significant items that are set forth in the following table ($ in millions, except per share amounts).

                         
 

IncomeBefore TaxesImpact

After-TaxNet IncomeImpact

Diluted EPSImpact

Q2 2012

Net Gain on Sale of Assets $ 6.2 $ 5.2 $ 0.12
Gain on Insurance Recoveries $ 5.2 $ 3.6 $ 0.08
Business/Corporate Development Expenses $ (1.9 ) $ (1.2 ) $ (0.03 )
Impact of Canadian Pacific Railway Strike $ (0.5 ) $ (0.4 ) $ (0.01 )
 

Q2 2011

Net Gain on Sale of Assets $ 1.1 $ 0.9 $ 0.02
Gain on Insurance Recoveries $ 1.0 $ 0.7 $ 0.02
Gain on Sale of Investment $ 0.6 $ 0.6 $ 0.01
Business/Corporate Development Expenses $ (0.4 ) $ (0.3 ) $ (0.01 )
 
 

Jack Hellmann, President and CEO of GWI commented, “GWI’s business continued to perform well in the second quarter of 2012, as revenues were in line with our expectations at $217 million and our adjusted operating ratio improved by 0.9 percentage points to 75.5%. In our North American & European Operations, despite weakness in our U.S. coal traffic, we maintained an adjusted operating ratio of 75.8%. In our Australian Operations, the reopening of the Edith River Bridge significantly improved traffic flow to Darwin and our second quarter adjusted operating ratio improved to 74.9%.” (1)

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