GWR - Genesee & Wyoming Reports Traffic for May 2019

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for May 2019.

G&W’s total traffic in May 2019 was 264,098 carloads, a decrease of 28,998 carloads, or 9.9%, compared with May 2018. G&W’s same railroad traffic in May 2019 decreased 16,250 carloads, or 5.8%, compared with G&W’s traffic in May 2018, excluding carloads from G&W’s former Continental European intermodal business (ERS), which was sold in June 2018, and short line lease expirations in Canada (Goderich-Exeter Railway (GEXR) and Southern Ontario Railway (SOR)) in the fourth quarter of 2018.

G&W’s traffic in the second quarter of 2019 through May was 519,745 carloads, a decrease of 43,452 carloads, or 7.7%, compared with the second quarter of 2018 through May. G&W’s same railroad traffic in the second quarter of 2019 through May decreased 17,065 carloads, or 3.2%, compared with the second quarter of 2018 through May, excluding carloads from ERS, which was sold in June 2018, and short line lease expirations in Canada (GEXR and SOR) in the fourth quarter of 2018.

The table below sets forth summary total carloads by segment.

Highlights by Segment

• North American Operations: Traffic in May 2019 was 138,795 carloads, a decrease of 8.1% compared with May 2018. Same railroad traffic in May 2019 decreased 6.2% compared with May 2018, excluding short line lease expirations in Canada, primarily due to decreased coal & coke, metals and pulp & paper traffic. North American traffic in May 2019 was affected by severe weather and flooding.
• Australian Operations: Traffic in May 2019 was 46,494 carloads, a decrease of 9.3% compared with May 2018, primarily due to decreased agricultural products, coal & coke and minerals & stone traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
• U.K./European Operations: Traffic in May 2019 was 78,809 carloads, a decrease of 13.2% compared with May 2018. Same railroad traffic in May 2019 decreased 2.9% compared with May 2018, excluding traffic from ERS, primarily due to decreased minerals & stone traffic in Poland and the U.K. and coal & coke traffic in the U.K., partially offset by increased petroleum products traffic in the U.K.

The table below sets forth North American Operations carload information by commodity group.

The following highlights relate to North American same railroad traffic:

• Coal & coke traffic decreased 4,179 carloads, or 20.8%, primarily due to decreased shipments in G&W’s Southern Region partially resulting from flooding in Arkansas that affected a connecting Class I.
• Metals traffic decreased 1,766 carloads, or 13.2%, primarily due to decreased shipments in G&W’s Midwest, Northeast and Coastal regions.
• Pulp & paper traffic decreased 1,392 carloads, or 9.5%, primarily due to decreased containerboard shipments in G&W’s Southern Region in part due to unplanned maintenance outages at several customer facilities.
• All remaining traffic decreased by a net 1,823 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations by commodity group.

• Agricultural products traffic decreased 2,733 carloads, or 55.0%, primarily due to a weaker 2018-2019 South Australia grain harvest.
• Coal & coke traffic decreased 938 carloads, or 2.8%, primarily due to decreased shipments in the Hunter Valley.
• Minerals & stone decreased 789 carloads, or 13.7%, as gypsum traffic was negatively impacted due to an incident at a customer port facility.
• All remaining traffic decreased by a net 295 carloads.

The table below sets forth U.K./European Operations carload information by commodity group.

The following highlights relate to U.K./European same railroad traffic:

• Minerals & stone traffic decreased 1,396 carloads, or 8.2%, due to decreased shipments in Poland and the U.K.
• Coal & coke traffic decreased 1,267 carloads or 81.1%, primarily due to decreased shipments in the U.K.
• Petroleum products traffic increased 1,220 carloads due to new jet fuel shipments in the U.K.
• All remaining traffic decreased by a net 892 carloads.

Second Quarter of 2019 Through May

The table below sets forth summary total carloads by segment.

The table below sets forth North American Operations carload information by commodity group.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations by commodity group.

The table below sets forth U.K./European Operations carload information by commodity group.

Other

The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.

Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

About G&W

G&W owns or leases 120 freight railroads organized in eight locally managed operating regions with 8,000 employees serving 3,000 customers.

• G&W’s six North American regions serve 41 U.S. states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
• G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

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