Home / Americas / Greenbrier announces USD 1.24 bn orders for 14,100 railcars

Greenbrier announces USD 1.24 bn orders for 14,100 railcars

The Greenbrier Companies announced that it received new orders in its first quarter ended November 30, 2014 for 14,100 railcar units valued at USD 1.24 billion. Orders for the quarter include small-cube covered hopper cars for sand and cement transportation, boxcars, double-stack intermodal units, automobile carrying cars, gondolas and tank cars, both for crude oil and other commodity types. The average selling price for the orders reflects the diversity of railcar types ordered. (These orders include 11,400 units valued at nearly USD  billion received in September and October 2014 which Greenbrier previously disclosed on October 30, 2014.)

William A. Furman, Chairman and CEO said, “Our strategy to diversify our product mix continues to pay off, with nearly two-thirds of the orders received being non-energy related. We are well positioned to meet this broad-based demand with our efficient, flexible and lower-cost facilities. Greenbrier’s business has never been better balanced than it is now.”

“We anticipate the regulatory picture for tank cars transporting hazardous materials will be clarified with final US and Canadian government actions in early 2015,” Furman said. “This will prompt an additional wave of new tank car orders and tank car retrofits, regardless of current oil prices. Greenbrier is strategically positioned to meet this demand.”

Furman concluded, “The future is bright for Greenbrier. We remain committed to operational excellence in each of our businesses and enhancing the long-term trajectory of key metrics, including financial goals of at least 20% aggregate gross margin and 25% ROIC by the second half of fiscal 2016. Our robust and diverse order book moves us one step closer to achieving these goals.”

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