Trinity Industries, Inc. Provides Business Update and Announces Dates for Earnings Release
27 Januar 2009 - 11:19PM
PR Newswire (US)
DALLAS, Jan. 27 /PRNewswire-FirstCall/ -- Trinity Industries, Inc.
(NYSE: TRN) today reported that it delivered approximately 7,050
railcars in the fourth quarter of 2008. This represents an increase
as compared to approximately 6,740 railcar deliveries in the fourth
quarter of 2007. The Company received orders for approximately
1,180 railcars during the fourth quarter of 2008. The Company has
elected to indefinitely defer the investment of $800 million in
approximately 10,000 railcars for multiple lessees in the ethanol
industry that were scheduled for delivery to Trinity's leasing
company in 2010 and 2011. Following the removal of these railcars,
TrinityRail's order backlog at December 31, 2008 totaled
approximately $720 million, representing approximately 8,260
railcars. "For planning purposes we have removed certain railcars
from TrinityRail's order backlog due to the lack of stability in
the economy, credit markets, the volatility in the ethanol
industry, and changes in the financial condition of certain
third-party lessees," said Timothy R. Wallace, Trinity's Chairman,
CEO, and President. "This is a long-range planning decision and the
removal of the 2010 and 2011 railcars from the backlog does not
impact our current production plans for 2009." TrinityRail's order
backlog now includes approximately 7,010 railcars scheduled for
delivery in 2009 and approximately 1,250 railcars scheduled for
delivery in 2010. Railcars for use in the ethanol industry comprise
approximately 1,740 of the railcars in the updated order backlog.
As a result of the declining demand for railcars, the Company has
idled, or is in the process of idling, four railcar manufacturing
facilities. These facilities are located in Missouri, Oklahoma, and
Texas. Further reductions in workforce have taken place at other
plants in Georgia, Texas, and Mexico. The Company has also reduced
its workforce in the corporate headquarters. Further reductions
will be made if production declines. At this time, Trinity expects
to deliver 6,000 to 7,000 railcars in the first half of 2009. The
Company has also idled a wind tower facility in Oklahoma,
consolidating capacity. At this time, the Company does not plan to
convert any railcar facilities to wind tower operations. "These are
very difficult times for the North American railcar manufacturing
industry and the global economy as a whole," said Wallace. "We have
significantly reduced our railcar manufacturing capacity in the
last few months and will continue to monitor demand very closely.
We have seasoned management with deep experience in working through
various cycles in the economy and remain prepared to adjust with
the cyclical nature of our businesses. We expect to reduce railcar
manufacturing capacity further if demand does not recover in the
near-term. It is not a pleasant experience to reduce our workforce
and we are sensitive to the timing of these necessary actions."
Trinity will report its quarterly financial results for the three
and twelve months ended December 31, 2008 after the financial
markets close on February 18, 2009. The Company will conduct a
conference call at 11:00 a.m. Eastern on February 19, 2009 to
discuss its fourth quarter results. To listen to the call, please
visit the Investor Relations section of the Company's website,
http://www.trin.net/. An audio replay may be accessed through the
Company's website or by dialing (402) 220-0121 until 11:59 p.m.
Eastern on February 26, 2009. At this time, the Company expects its
first quarter 2009 earnings from continuing operations to range
from $0.25 to $0.35 per common diluted share. Trinity Industries,
Inc., headquartered in Dallas, Texas, is a multi-industry company
that owns a variety of market-leading businesses which provide
products and services to the industrial, energy, transportation,
and construction sectors. Trinity reports its financial results in
five principal business segments: the Rail Group, the Railcar
Leasing and Management Services Group, the Inland Barge Group, the
Construction Products Group, and the Energy Equipment Group. For
more information, visit: http://www.trin.net/. Some statements in
this release, which are not historical facts, are "forward-looking
statements" as defined by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include statements about
Trinity's estimates, expectations, beliefs, intentions or
strategies for the future, and the assumptions underlying these
forward-looking statements. Trinity uses the words "anticipates,"
"believes," "estimates," "expects," "intends," "forecasts," "may,"
"will," "should," and similar expressions to identify these
forward-looking statements. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from historical experience or our present expectations.
For a discussion of such risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see "Forward-Looking Statements" in the
Company's Annual Report on Form 10-K for the most recent fiscal
year. DATASOURCE: Trinity Industries, Inc. CONTACT: James E. Perry,
Vice President, Finance and Treasurer of Trinity Industries, Inc.,
+1-214-589-8412 Web Site: http://www.trin.net/
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