Trinity Industries, Inc. (TRN) Wednesday reported a sharp decline in profit for the third quarter, reflecting lower revenue from all business segments. The company also provided earnings guidance for the fourth quarter.
Net income for the quarter declined to $23.2 million or $0.29 per share from $89.6 million or $1.09 per share a year ago. Income from continuing operations were $23.2 million or $0.29 per share, compared to $91.0 million or $1.11 per share in the previous year.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share. Analysts' estimates typically exclude special items.
The Dallas, Texas-based company's total revenues for the quarter declined to $557.4 million from $1.15 billion last year. Analysts expected a revenues of $563.65 million for the third quarter.
By segment, revenue from Rail Group declined to $166.1 million from $752.7 million last year. During the quarter, TrinityRail shipped about 1,630 railcars and received orders for about 1,000 railcars.
Construction Products Group revenue decreased 27% to $146.3 million from $201.0 million and Inland Barge Group revenue declined to $113.8 million from $160.6 million last year. The Inland Barge Group received orders worth more than $110 million during the third quarter of 2009 and had a backlog of about $350 million as of September 30, 2009.
Revenue from Energy Equipment Group was $132.7 million, down from $184.5 million in the year ago quarter. The order backlog for structural wind towers as of September 30, 2009 totaled about $1.1 billion.
Revenue from Railcar Leasing and Management Group declined to $81.5 million from $207.3 million a year ago. Trinity Industries Leasing Company had about 49,470 railcars in its fleet as of September 30, 2009. Lease fleet utilization was 97.2% as of September 30, 2009. Other revenues declined to $11.2 million from $21.5 million last year.
Interest expense for the quarter increased to $31.3 million from $26.6 million in the previous year.
For the nine-month period, net loss was $152.3 million or $2.00 per share, compared to an income of $237.6 million or $2.90 per share in the same period of the previous year. Revenues for the period declined to $2.07 billion from $3.00 billion last year.
Looking forward, the company estimates earnings in the range of $0.08 to $0.13 per share for the fourth quarter of 2009. Analysts anticipate earnings of $0.06 per share for the next quarter.
TRN closed Wednesday's regular trading at $16.72, down 0.65 or 3.74%, on a volume of 1.64 million shares on the NYSE. In after hours, the stock further went down 0.22 or 1.32 %, trading at $16.50.
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