Genesee & Wyoming improved earnings in the fourth quarter through acquisitions and the performance of a few commodities. But most same-railroad results suffered from weakness in the industrial economy.
Net income of $25.3 million rose 82 percent beyond $13.9 million net in the fourth quarter of 2007. Profits came in part from a $6.5 million tax benefit and $3.9 million for the sale of assets.
But revenue of $149.2 million, compared with $134.5 million a year ago, grew because of $26.3 million from acquisitions offset by a decrease of $11.7 million in same railroad revenue.
"Despite our strong reported earnings, the fourth quarter of 2008 was a difficult one," said John C. Hellman, chief executive officer. "On the positive side, our less economically sensitive commodities such as utility coal, grain, waste and salt performed well and our five recent acquisitions collectively met our financial expectations. On the negative side, the severe deterioration of the industrial economy negatively impacted our results, especially in December. Areas of particular traffic weakness were in paper and forest products as well as steel shipments."