Greenbrier cuts back on spending and reports smaller 2nd-qtr loss despite decrease in revenue

Greenbrier cuts costs and takes smaller 2Q loss

LAKE OSWEGO, Ore. — Railroad freight car maker Greenbrier Cos. said Wednesday it reduced its loss in the fiscal second quarter as it cut costs in response to declining sales.

Greenbrier said it lost $4.8 million, or 28 cents per share, in the three months ended Feb. 28. That’s down from $7.5 million, or 45 cents per share, a year earlier. Its revenue fell 30 percent, to $200 million from $287.1 million, but the company reduced its spending by 35 percent.

According to Thomson Reuters, analysts expected a loss of 23 cents per share.

The company cut its manufacturing costs by 46 percent and refurbishment and parts costs by 22 percent.

Greenbrier said its manufacturing revenue dropped to $88.1 million from $145.6 million, refurbishment and parts revenue fell to $94.3 million from $121.7 million, and leasing and service revenue declined to $17.6 million from $19.9 million.

The company delivered 800 new railcar units in the second quarter, down from 1,300 a year earlier. At the end of February it had a backlog of 4,400 units worth a total of $380 million, down from 15,100 units valued at $1.31 billion a year ago.

Greenbrier said it experiencing early signs of greater activity and demand in all its businesses, with more railcar loadings, lower railroad velocity, and fewer railcars kept in storage. The company said it is optimistic the economy is beginning to recover from its downturn and said the second half of its fiscal year will be “significantly stronger” than the first half, but it still expects revenue to be lower in 2010 than 2009.

The company also said it filed a registration statement for an offering of $300 million in stock, but said it has no plans to sell new stock.

Greenbrier shares closed 8 cents higher at $12.07 Tuesday.

(This version CORRECTS date to Wednesday from Tuesday)