Genesee & Wyoming 2Q net up after acquisitoin

Genesee & Wyoming 2Q profit rises after RailAmerica acquisition and growing traffic

Associated Press

DARIEN, Conn. (AP) -- Railroad company Genesee & Wyoming said on Thursday that its second-quarter net income rose 78 percent as it benefited from last year's $1.4 billion acquisition of competitor RailAmerica.

Net income was $64.8 million, or $1.14 per share, for the quarter that ended June 30. During the same period last year it earned $36.4 million, or 84 cents per share.

Revenue nearly doubled to $400.7 million, from $217.4 million a year ago.

Analysts surveyed by FactSet had been expecting a profit of $1.11 per share on revenue of $405 million.

Traffic rose 7.7 percent to 480,979 carloads compared to a year earlier, if traffic from its RailAmerica acquisition are counted for both periods. Traffic gains were driven by iron ore shipments in Australia, petroleum in North America, and coal shipments in the U.S.

Shares rose 38 cents to $90.04 in afternoon trading.

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