Trinity (TRN) Expands Footprint With RSI Logistics Buyout

·2 min read

Trinity Industries TRN, having remained in line with its objective to expand network, announced that it has acquired RSI Logistics for $70 million. The transaction, which closed on Mar 8, is not expected to have a significant impact on Trinity’s results.

The erstwhile RSI Logistics is a data-centric provider to the North American rail industry of proprietary software, logistics services and solutions pertaining to terminal management. The move to buy RSI Logistics is a prudent one due to the presence of numerous synergies.

New opportunities for growth and innovation are likely to be created as RSI’s rail technology, logistics services and bulk terminal network are coming together with Trinity’s railcar manufacturing and leasing, technology and maintenance service. As a result of the combination, services to customers are also likely to improve. Trinity has said that all employees of RSI Logistics will be retained.

Expressing delight at the acquisition, Jean Savage, Trinity’s President and Chief Executive Officer said “Coupling RSI’s expertise and reputation with the transformational technology of Trinsight will deliver a unique tool to rail shippers to gain more control of their supply chains.”

Zacks Rank & Key Picks

Trinity currently carries a Zacks Rank # 5 (Strong Sell).

Investors interested in the Zacks  Transportation sector may consider the following stocks.

Alaska Air Group ALK is being aided by the improved air-travel-demand situation. For the fourth quarter of 2022, ALK reported better-than-expected results. It expects a 23-29% increase in the top line during first-quarter 2023.

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United Airlines UAL, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in fourth-quarter 2022 which was the third consecutive profitable quarter at UAL.

Driven by solid demand, management expects total revenue per available seat mile to grow almost 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow almost 50% year over year.

The Zacks Consensus Estimate for first-quarter 2023 earnings has been revised upward by more than 100% in the past 60 days.

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