The railcar maker said it expects fiscal-year earnings of $3.60 to $3.80 a share, excluding 14 cents a share related to railcar contract loss accruals and closure costs in the second period, the company said. Greenbrier said it expects revenue in the fiscal year of more than $3 billion.
Analysts had been calling for fiscal-year profit of $3.61 a share on revenue of $3.09 billion. Greenbrier previously had forecast earnings of between $4.20 and $4.40 a share.
The company said revenue in the second quarter was $658.7 million. Analysts were expecting $628.7 million. Orders for 3,800 railcars were received during the quarter, valued at nearly $450 million.
William A. Furman, Chairman and CEO, said,
"Order activity, railcar deliveries and revenue generation highlighted Greenbrier's fiscal second quarter. However, our earnings performance was underwhelming, reflecting what we believe will be a single disappointing quarter," said William Furman, chairman and CEO. "Greenbrier's fiscal second quarter was expected to be the least profitable of fiscal 2019. Planned production line changeovers temporarily reduced manufacturing efficiency in the quarter. These expected operating disruptions were compounded by the railcar contract loss accruals in Europe and Gunderson and the facility closure costs in our railcar repair network that we communicated on March 22."
Greenbrier said about 95% of fiscal 2019 production was in backlog, and believes that deliveries will be roughly 24,000 to 26,000 units.
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