The Greenbrier Companies, Inc. has reported financial results for its first fiscal quarter ending November 30, 2016, with net earnings of $25 million, or $0.79 per diluted share, on revenue of $552.3 million. Adjusted EBITDA for the quarter was $85.7 million, or 15.5 percent of revenue.
“Greenbrier's fiscal 2017 is off to a strong start with solid financial performance delivered during a demanding first quarter,” said William A. Furman, Greenbrier chairman and CEO. “We had healthy manufacturing margins on lower deliveries, a testament to the strength of our manufacturing and leasing operations. We continue to execute on our strategy of focusing on our core North American operations while pursuing targeted investments in international markets.”
“Brazil's economic, business and political conditions have improved and forecasts indicate continued GDP improvement in 2017,” added Furman. “For the quarter ended November 30, 2016, our Brazilian railcar manufacturing joint venture Greenbrier-Maxion received orders and awards for over 2,000 railcars, which are not included in Greenbrier's reported orders.”
“As we pursue investments in growth opportunities, our solid financial returns in our core business in North America and internationally along with our strong balance sheet remain critical,” continued Furman. “These provide us the flexibility to compete effectively today while continuing to invest domestically and internationally for tomorrow. In addition, changes in the global trade environment will require robust risk management.”
As of November 30, 2016, Greenbrier’s railcar backlog was 25,800 units with an estimated value of $2.97 billion (average unit sale price of $115,000). Included in backlog are 3,800 covered hopper railcars for use in energy related sand transportation, of which 2,500 units, scheduled for production in 2018, are for a customer who is negotiating with Greenbrier to modify the order.
During the first fiscal quarter, Greenbrier received diversified orders for 2,400 new railcars, which are valued at more than $230 million, or an average price of approximately $98,000 per railcar. Deliveries of new railcars totaled 4,000 units for the quarter, compared to 4,600 units for the quarter ending August 31, 2016.
Furman concluded, “Based on our first quarter results, regular communications with customers and current production schedules in North America, we are reaffirming our guidance for the year. We will continue to seek opportunities to diversify by accessing new global markets, while streamlining our cost structures to maximize profitability in North America.”
Based on current business trends, industry forecasts and production schedules for fiscal 2017, Greenbrier believes that revenue will be $2 to $2.4 billion and deliveries will be between 14,000 and 16,000 units. Guidance for annual diluted EPS is expected at $3.25 to $3.75.