Greenbrier Receives Orders For 15,000 Railcars Worth $1.37 Bln

Railroad freight car equipment maker Greenbrier Companies, Inc. (GBX) said Wednesday that it has received new orders for 15,000 railcar units valued at $1.37 billion.

The orders announced by Greenbrier today include orders received in June 2014 for 2,700 railcar units valued at about $320 million, which the company previously disclosed on July 2, 2014. The orders received by the company since September 1, 2013 have now surpassed $3.72 billion.

Lake Oswego, Oregon-based Greenbrier noted that the order comprises a broad range of railcar types, including tank cars, small cube covered hopper cars for sand and cement service, medium cube covered hopper cars for grain service, automotive carrying cars, and a recent award for 3,100 double-stack intermodal units.

In addition, Greenbrier has received a recent deck cargo barge order, which brings its total marine backlog to $112 million and extends the company's marine backlog to 2016.

Since September 1, 2013 and to date, Greenbrier has received orders for almost 39,000 railcars in North America and Europe, valued at $3.72 billion. The company noted that average sales price of $95,000 reflects the diversity of railcar types ordered.

William Furman, Chairman and CEO of Greenbrier said, "We are particularly pleased by demand and strength in the intermodal market and Greenbrier's award of 3,100 double stack units, reflecting 100% market share of orders recently placed. This award, along with our marine backlog, stabilizes production at our flagship Gunderson facility in Portland, Oregon."

Greenbrier noted that Intermodal car loadings continue to increase and are up nearly 6 percent compared to the same period in 2013.

Shipments of petroleum and petroleum products, including crude by rail, as well as shipments of sand used in hydraulic fracturing have each grown year to date by about 12 percent, continuing to drive demand for tank cars and small cube covered hoppers.

According to Greenbrier, transport of agricultural products is also expanding rapidly as year-over-year railcar loadings for grain are up about 15 percent, leading to nearly 100 percent utilization of the existing North American grain railcar fleet.

Greenbrier also said it expects the U.S. Department of Transportation will issue its final rule on the safe movement of flammable liquids by rail before the end of 2014.

The company noted that a final rule will provide the clarity required by the industry to make investments that ensure that crude oil and other flammable commodities are classified properly and transported in tank cars that are safer at any speed.

GBX closed Tuesday's trading at $71.72, up $2.71 or 3.93 percent on a volume of 732,622 shares.

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