GREENWICH, Conn. — Genesee & Wyoming Inc. reported net income in the first quarter of 2010 of $16.0 million, compared with net income of $13.9 million in the first quarter of 2009.
GWI’s diluted earnings per share (EPS) in the first quarter of 2010 were $0.39 with 41.4 million weighted average shares outstanding, compared with diluted EPS of $0.38 with 36.4 million weighted average shares outstanding in the first quarter of 2009.
“Our first quarter financial results were a good start to 2010,” said John C. Hellmann, president and CEO of GWI. “In late February, our traffic began to strengthen in several commodity groups including steel and grain, and we continued to control our costs.
“The result was an operating ratio of 79.3 percent, which is a first quarter record in the history of GWI,” Hellmann added. “We are focused on sustaining this level of operating efficiency for the remainder of the year, regardless of the pace of improvement in the economy.”
GWI’s effective income tax rate in the first quarter of 2010 was 37.6 percent, compared with 27 percent in the first quarter of 2009, primarily due to the expiration of the short line tax credit on Dec. 31, 2009.
In the first quarter of 2010, GWI’s total revenues increased $7.1 million, or 5.1 percent, to $145.6 million, compared with $138.5 million in the first quarter of 2009. During the first quarter of 2010, the appreciation of the Australian and Canadian dollars and the Euro versus the U.S. dollar increased revenues by $8.4 million. Excluding foreign currency appreciation, GWI’s revenues declined $1.3 million, or 0.9 percent.
Freight revenues in the first quarter of 2010 increased by $0.4 million, or 0.4 percent, to $89.6 million, compared with $89.2 million in the first quarter of 2009. Freight revenues increased by $4.3 million due to the appreciation of the Australian and Canadian dollars versus the U.S. dollar. Excluding foreign currency appreciation, GWI’s freight revenues decreased by $3.9 million, or 4.4 percent.
Of particular importance in reviewing the first quarter of 2010 was the timing of carloadings, which increased significantly in the month of March. In March 2010, GWI’s traffic increased 5 percent compared with March 2009 and 17.8 percent compared with February 2010. GWI’s total traffic in the first quarter was 202,368 carloads, a decrease of 12,071 carloads, or 5.6 percent, compared with the first quarter of 2009.
Average freight revenues per carload increased 6.5 percent in the first quarter of 2010. The appreciation of the Australian and Canadian dollars versus the U.S. dollar increased average revenues per carload by 4.9%, and higher fuel surcharges increased average revenues per carload by 0.1 percent. Excluding these factors, average revenues per carload increased 1.4 percent.
GWI’s non-freight revenues in the first quarter of 2010 increased $6.7 million, or 13.6 percent, to $56.0 million, compared with $49.3 million in the first quarter of 2009. The increase in non-freight revenues included a $4.1 million increase due to the appreciation of the Australian and Canadian dollars and the Euro versus the U.S. dollar. Excluding foreign currency appreciation, GWI’s non-freight revenues increased $2.6 million, or 5.3 percent.
GWI’s operating income in the first quarter of 2010 was $30.1 million, an increase of $4.0 million, or 15.3 percent, compared with $26.1 million in the first quarter of 2009. GWI’s operating ratio was 79.3 percent in the first quarter of 2010, a 1.8 percentage point improvement over the 81.1% operating ratio in the first quarter of 2009.
