Genesee & Wyoming reports slight rise in 3Q profit

Genesee & Wyoming reports slight 3Q profit increase on sale of Mexican operation

• On 12:24 pm EST, Tuesday November 3, 2009

GREENWICH, Conn. (AP) -- Genesee & Wyoming Inc. said on Tuesday that its third-quarter profit rose slightly as it sold its Mexican operations, though revenue fell.

The railroad operator reported a $21.7 million profit, or 53 cents per share, for the quarter that ended Sept. 30. During the same period a year earlier it earned $21.2 million, or 58 cents per share. Per share results were affected by a 13 percent increase in weighted average shares in the latest quarter, diluting share earnings from that period.

Revenue fell 14.4 percent to $136.4 million, down from $159.4 million a year earlier. The falloff would have been worse if not for acquisitions. Genesee & Wyoming's revenue from the same railroads it owned a year ago fell by $35.9 million, or 22.5 percent, but it added $12.9 million in revenue from acquisitions.

The company said it earned 48 cents per share from continuing operations. Analysts surveyed by Thomson Reuters were expecting a profit of 40 cents per share on revenue of $139 million.

During the quarter, the company sold its Mexican operations for a gain of $2.4 million, or 6 cents per share. It also sold a Bolivian investment, which resulted in a gain of 1 penny per share.

Average freight revenue per carload fell 10 percent because of lower fuel surcharges, changes in the mix of the commodities it hauled, acquisitions, and currency impact.

President and CEO John Hellmann said the company is "active in evaluating investment opportunities in both North America and Australia. Given the strength of our balance sheet, we are well positioned to execute quickly on the right transactions."

Genesee & Wyoming shares rose 47 cents to $29.84 in afternoon trading.

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