Wednesday, Trinity Industries, Inc. (TRN) reported a net loss in the second quarter, reflecting charges and lower revenues. However, excluding charges, it reported profit that beat Wall Street view. Looking forward, the company said it expects a more challenging operating environment.
The company recorded a net loss of $209.4 million, or $2.75 per share for the second quarter compared with earnings of $84.2 million, or $1.03 per share last year. The latest quarterly results included an after tax charge of $243.3 million for the impairment of goodwill related to its rail businesses.
Excluding charges, earnings were $33.9 million, or $0.43 per share for the second quarter. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.27 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter were $716.1 million, down from $945.5 million in the comparable quarter last year. Analysts expected the company to report revenue of $676.30 million.
For the six month ended June 30, 2009, the company recorded a net loss of $175.5 million, or $2.30 per share. Excluding charges, it reported net income of $67.8 million, or $0.86 per share, compared with $148.0 million, or $1.81 per share last year.
Revenues for the six months ended June 30, 2009 were $1.51 billion as compared to $1.84 billion in the same period last year.
Looking forward, the company estimates earnings of between $0.22 and $0.30 per share for the third quarter of 2009. Based on the current order inquiries, normal seasonality and existing backlogs, the company expects that earnings in the fourth quarter could be near a breakeven level.
Timothy Wallace, Trinity's CEO said, "We anticipate a more challenging operating environment going forward as our new order volume is not keeping pace with completion of orders in our railcar and barge backlogs. We continue to concentrate on cost reductions, maximizing efficiencies in our facilities, and aggressively pursuing new orders."
TRN closed Wednesday's regular trading at $15.00 down $0.58 or 3.72% on a volume of 2.09 million shares on the NYSE.
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