Greenbrier Companies Inc (NYSE:GBX) shares tumbled on reporting financial results for its third fiscal quarter ended May 31.
The company, out of Lake Oswego, Oregon, said net earnings for the quarter were $15.2 million, or $0.46 per diluted share, on revenue of $856.2 million. Quarterly results include a $10.0 million ($0.30 per share) non-cash goodwill impairment charge in the railcar repair operation and $4.3 million, net of tax, ($0.13 per share) of American Railcar Industries (ARI) acquisition costs.
Adjusted net earnings attributable to Greenbrier were $29.6 million ($0.89 per diluted share) excluding the goodwill impairment and ARI acquisition costs. Adjusted EBITDA for the quarter was $84.4 million, or 9.9% of revenue.
Orders for 6,500 diversified railcars were received during the quarter, valued at $730 million.
What’s more, Tuesday’s news release pointed out, the board declared quarterly dividend of $0.25 per share, payable on August 8 to shareholders as of July 18.
Acquisition of the manufacturing assets of ARI remains subject to regulatory review and approval.
William A. Furman, Chairman and CEO, said, "Greenbrier gained the momentum we expected during the quarter, led by improved operating efficiencies in our core North American manufacturing business.
"Greenbrier's current and expected performance is consistent with our prior comments that revenue and margin would be back-half weighted this fiscal year.
"These gains were muted in our overall financial results due to continued weakness in Greenbrier's railcar repair business and certain international operations, along with costs associated with the ARI acquisition."
Shares retreated $3.68, or 11.9%, to $27.17
