Genesee & Wyoming reported net income in the fourth quarter of 2012 was $13.4 million, dropping 60% from $33.3 million in the fourth quarter of 2011.
However, the earnings were impacted by GWI’s acquisition of RailAmerica. Fourth quarter earnings included after-tax charges of $30.7 million associated with the transaction, financing and integration-related expenses.
GWI’s quarterly operating ratio was 85.2%, compared with 78.4% in the fourth quarter of 2011. The company said its consolidated adjusted operating ratio in the fourth quarter of 2012 was 74.6%, compared with 78.6% in the same quarter in the previous year.
Quarterly operating revenue was $227.3 million, up 8% from $210.4 million in the same quarter in the previous year. Railroad freight revenue was $163.1 million, compared with $148.8 million in the fourth quarter of 2011.
“G&W’s financial results for the fourth quarter of 2012 were consistent with our expectations. Our fourth quarter revenues increased 8%, our adjusted operating income increased 28% and our adjusted operating ratio improved 4.0 percentage points to 74.6%,” said Jack Hellmann, GWI’s president and CEO, in a written statement. “In Australia, where our grain traffic was unusually low due to now-fixed mechanical issues in the Adelaide Outer Harbor, we nevertheless reported an adjusted operating ratio of 70.0% due to the smooth start-up of iron ore shipments from a new mine. Meanwhile, RailAmerica’s fourth quarter financial results were solid while it was held in a voting trust, contributing adjusted equity earnings of $19.1 million.”
For the full year of 2012, profit was $52.4 million, falling from $119.5 million in 2011. Annual operating revenue rose 5% from $829.1 million in 2011 to $874.9 million in 2012.
“The integration of RailAmerica is well underway, with new regional management teams largely established, overlapping functions being rationalized and best practices being established in each department,” Hellmann said. “We are optimistic that we will complete the vast majority of the integration work by the end of the second quarter of 2013.”