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Greenbrier Receives Orders for Railcars Worth $430 Million

January 8th, 2013

Railroad equipment supplier The Greenbrier Companies has announced the receipt of orders for more than 4,200 railcar units, valued at more than $430 million, from North American and European markets since the start of its current fiscal year, beginning Sept. 1, 2012.

Continued strength in North American shale energy markets generated orders for 1,250 of Greenbrier’s tank cars, with a value of about $160 million, the company said in a written statement. Tank cars represent 30% of all new business since the beginning of the fiscal year.

The company is targeting an annual build rate in North America of about 3,800 tank cars per year by December 2013, driving higher volumes and margins in the manufacturing segment, especially in the second half of the fiscal year, according to William A. Furman, Greenbrier’s president and CEO.

“In 2013, we will begin selling railcars to transport plastic pellets for which we anticipate strong demand in 2014 and 2015,” Furman added.

The Lake Oswego, Ore.-based company has also received orders for 1,400 automotive-related products valued at $140 million. In North America, Greenbrier has received orders for nearly 1,000 automotive racks, and orders for 89-foot flatcars to support the rack deliveries are anticipated later in the fiscal year. In Europe, the company has received orders for more than 400 automotive-related railcars.

The remaining 1,550 railcars included a variety of other railcar types.

Orders of 4,200 units in four months annualizes to 12,600 units, which is within the company’s 2013 production guidance range of 11,500 to 13,000 units, investment research firm Stifel Nicolaus’s Transportation, Logistics and Equipment Research Group said.

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