RailAmerica Acquisition Hits Genesee & Wyoming's Earnings

RailAmerica Acquisition Hits Genesee & Wyoming's Earnings

Genesee & Wyoming reported its net income in the fourth quarter of 2012 was $13.4 million, down from $33.3 million in the fourth quarter of 2011.

The earnings were affected by GWI’s acquisition of RailAmerica. Fourth quarter earnings included after-tax charges of $30.7 million associated with the transaction.

Quarterly operating revenue was $227.3 million, up 8 percent from $210.4 million in the same quarter in the previous year. The company said growth in Australian iron ore shipments drove the increase.

For the full year of 2012, GWI’s profit was $52.4 million, falling from $119.5 million in 2011. Annual operating revenue rose 5 percent from $829.1 million in 2011 to $874.9 million in 2012.

“The integration of RailAmerica is well underway, with new regional management teams largely established, overlapping functions being rationalized and best practices being established in each department,” said Jack Hellmann, president and CEO of GWI, in a written statement. “We are optimistic that we will complete the vast majority of the integration work by the end of the second quarter of 2013.”