Genesee & Wyoming reports net income of $549.1m for 2017


Genesee & Wyoming’s Q4 operating revenues increased 10.7% to $571.6m from $516.5m. Reported operating income increased 101.9% to $108.2m and adjusted operating income increased 2.2% to $105.7m.

Operating revenues from G&W’s North American Operations decreased 0.6% to $320.2m from $322.2m, primarily due to an $11.5m decrease in freight-related revenues, partially offset by an increase of $9.3m in freight revenues. Reported operating income from G&W’s North American Operations decreased 10.5% to $74.6m and adjusted operating income decreased 13.6% to $75.5m.

Operating revenues from G&W’s Australian Operations increased 23.1% to $75.5m in Q4, primarily due to new operations. Reported operating income from G&W’s Australian Operations increased from $2.8m to $17.6m. Adjusted operating income increased 66.1% to $22.5m.

Operating revenues from G&W’s U.K./European Operations increased 32.3% to $175.8m from $133.0m, primarily due to new operations. Q4 operating income from G&W’s U.K./European Operations was $16.0m, compared with an operating loss of $32.6m in 2016. Adjusted operating income from G&W’s U.K./European Operations increased from $2.4m to $7.6m.

Reported net income attributable to G&W for the year ended December 31, 2017 was $549.1m, compared with $141.1m for the year ended December 31, 2016. Excluding the impact of certain items affecting comparability listed below, adjusted net income attributable to G&W for the year ended December 31, 2017 was $182.0m, compared with $182.4m for the year ended December 31, 2016.

For the year ended December 31, 2017 operating revenues from G&W’s North American Operations increased 3.0% to $1,274.3m. Reported operating income from G&W’s North American Operations decreased 4.9% to $303.9m. Adjusted operating income from G&W’s North American Operations decreased 4.6% to $312.6m from $327.6m in 2017.

Operating revenues from G&W’s Australian Operations increased 38.2% to $307.5m from $222.6m. Reported operating income from G&W’s Australian Operations increased to $77.3m from $4.8m. Adjusted operating income from G&W’s Australian Operations increased to $82.2m from $41.4m, primarily due to new operations from the GRail acquisition.  

For the full year, operating revenues from G&W’s U.K./European Operations increased 15.5% to $626.2m from $542.2m, primarily due to new operations from the Pentalver acquisition. Operating revenues included a $13.4m benefit from foreign currency appreciation. Reported operating income from G&W’s U.K./European Operations increased to $17.3m from an operating loss of $34.7m. Adjusted operating income from G&W’s U.K./European Operations increased to $20.7m from $5.2m, primarily due to the impact of the restructuring of ERS and the contribution of the Pentalver acquisition.

Jack Hellmann, President and CEO of G&W, commented: “In 2017, we generated adjusted free cash flow attributable to G&W of $250m, a 3.6% increase over 2016, as we effectively managed both expenses and capital expenditures to more than offset flat revenue. In 2018, with an improving business outlook in each of our operating regions, we expect double digit growth in both adjusted earnings per share and adjusted free cash flow attributable to G&W. At the same time, we continue to evaluate acquisition and investment opportunities across G&W’s global footprint and have approximately $400m of borrowing capacity under our revolving credit facility”.

Source: G&W

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