Trinity Industries Posts $18 Million 2Q Profit

Railcar and barge builder Trinity Industries posted an $18.4 million profit on $543 million in sales in the second quarter, a sharp turnaround from last year’s $209.4 million loss on $716 in revenue.

That 2009 quarter was the low point of the freight recession, and Trinity booked a $325 million impairment charge to recognize lost goodwill in its dominant rail business.

This year it still had a $2.7 million operating loss in its rail segment, but that shows recovery from the nearly $329 million operating loss for the rail group’s 2009 period.

Its orders backlog is rising again; it grew to 3,990 cars on order worth $300 million as of June 30, up from 2,980 cars to build for $250 million on March 31.

But Trinity’s diversification is also one of its strengths. Sales from its construction products unit, which sells steel rebar and other support materials for road, bridge and other building projects, led all its segments in the April-June quarter at $171 million. Railcar fleet lease and management revenue followed at $120 million, and wind tower production brought in $115 million.

Its traditional railcar mainstay business generated receipts of $113 million, less than half its level of a year earlier, and barge building brought nearly $100 million in sales.

All the main business units except for construction products saw their sales decline from the 2009 quarter. Operating profits increased both for the railcar leasing and construction products groups.

--Contact John Boyd at jboyd@joc.com.