Genesee & Wyoming Inc. reported profit in the first quarter of 2013 of $82.7 million, up from $22.2 million in the first quarter of 2012.
The company’s net income for the quarter was boosted by the retroactive short-line tax credit for 2012 and a net gain on the sale of assets, partly offset by the costs of integrating RailAmerica’s operations and refinancing and debt prepayment expenses.
Revenue rose 80.9 percent year-over-year to $375.2 million, despite weakness in Canadian winter wheat exports and some North American steel shipments, and the company is performing in line with its RailAmerica acquisition plan, according to President and CEO Jack Hellman.
“In Australia, shipments of iron ore from a new mine continued to grow, a trend that we expect to be further supported by the expansion of our existing narrow gauge iron ore service starting in the second quarter of 2013,” he said. “In the United States, we experienced higher lumber and forest products shipments due to a stronger U.S. housing market as well as significant growth in crude-by-rail shipments on both the West Coast and the Gulf Coast. With the integration of RailAmerica operations now largely complete, we are focused on new commercial development, further reducing the expenses of the combined company, as well as carefully evaluating several new investment opportunities.”