Tuesday, May 01, 2001, 11:53 am EST
Railroad company declares stock split, positive earnings
Before today's opening bell, Genesee & Wyoming Inc. (Nasdaq:GNWR) announced first quarter profits and a 3-for-2 stock split on the Company's common outstanding shares.
The Connecticut-based holding company beat street expectations for Q1 by one cent, with EPS totaling $0.72, compared with $0.87 for the year ago period. Excluding gains, GNWR earned a net income of $4 million.
The board also announced the Company's first-ever stock split; a 3-for-2 payable June 15 for shareholders of record on may 31. There are currently 4.55 million shares outstanding and a float of 2.2 million.
CEO Mortimer B. Fuller III states, "The stock split underscores the sustained strength of Genesee & Wyoming's stock price, which has appreciated over 100% in the past 12 months, and reflects our positive long term outlook driven by the balanced earnings power of our North American and Australian operations".
Mr. Fuller continues, "We are taking steps in North America to improve our cost structure in those regions where shipments have weakened. As a result, we expect an improvement in our North American operating ratio in the second quarter, supported by continued strength of coal shipments. In addition, we are seeing a more attractive environment for U.S. acquisitions, and we have the capital available to execute on the right opportunities."
GNWR shares are currently trading up +1.45 to $27.90 on average volume of 12.6 thousand shares.
About the Company:
GWI is a leading operator of short line and regional freight railroads in the United States, Canada, Mexico, Australia and Bolivia, and provides freight car switching and related services to industrial companies that have extensive railroad facilities within their complexes. The Company operates in five countries on three continents over 7,700 miles of owned and leased track. (company press release)
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