Major railcar and barge builder Trinity Industries's soared 63 percent in the second quarter to $30 million, despite disruptions to a barge production facility in Missouri.
Revenue rose 31 percent from a year earlier to $710.5 million, as rail group sales more than doubled to $281 million and swung to a $15.4 million segment profit from a $2.7 million loss in the 2010 quarter. Barge receipts rose 18 percent to $118 million, and barge profit jumped 59 percent to $19 million.
In other business lines, railcar lease revenue gained, wind tower sales grew mildly and revenue contracted for Trinity’s construction steel products unit although it remained larger than all other lines except railcar building.
Equipment builders book income once they deliver the units, and Trinity shipped out 3,115 railcars in the period while taking orders to build 7,860 more.
That points to future growth ahead, in line with other companies such as equipment leasing firm CIT Rail starting to lock in more car orders through 2012.
“We continue to be encouraged by the level of demand for products in our railcar and barge businesses. This is reflected in their improving order backlogs,” said Timothy R. Wallace, Trinity's chairman, president and CEO.
The car building backlog as of June 30 grew to 27,240 units worth about $2.2 billion, from a March 31 level of 22,490 railcars worth $1.8 billion. The barge backlog was worth $494 million on June 30, up from $461 million three months earlier.
Trinity said its factors that can affect its performance for the rest of the year include how quickly the Missouri barge facility recovers from flooding, and how efficiently its rail units ramp up to meet higher demand.