Genesee & Wyoming Q2 profit beats Street, ups 2010 view

By: | at 08:00 PM | Intermodal  

Genesee & Wyoming Inc., which owns and operates short-line and regional railroads, posted better-than-expected quarterly results, helped by an increase in freight revenue, and raised its 2010 outlook.

For 2010, the company expects earnings from continued operations of $1.75 to $1.80 a share, up from its prior view of $1.65 a share.

It now expects revenue of $610 million to $615 million, up from its prior view of $590 million to $600 million.

Analysts on average were expecting earnings of $1.72 a share, on revenue of $613.7 million, according to Thomson Reuters I/B/E/S.

For the third quarter, the company forecast earnings from continued operations of 46 cents to 50 cents a share, on revenue of $155 million to $160 million.

“While macroeconomic trends in North America and Europe continue to be uncertain, GWI’s shipments have improved and remained stable since March 2010,” Chief Executive John Hellman said in a statement.

“Our Australian business continues to perform well and we anticipate doubling the size of that franchise with the acquisition of FreightLink in the fourth quarter of this year.”

Genesee & Wyoming bought Australia’s FreightLink for A$334 million ($277.2 million) in June to expand its footprint the mineral-rich country.

For the second quarter, the company reported earnings of $20.6 million, or 49 cents a share, compared with $7.4 million, or 20 cents a share, in the year-ago period.

It earned 50 cents a share from continuing operations.

Revenue rose 22 percent to $158.5 million. Freight revenue rose 26 percent to $100.2 million. (Reuters)