Greenbrier Companies Inc (NYSE:GBX) saw its share prices strengthen on the release of third-quarter figures Friday.
The Lake Oswego, Oregon-based company, a leading international supplier of equipment and services to global freight transportation markets, told investors the company achieved $1 billion liquidity target through combination of cash, borrowing capacity, and spending reductions.
Liquidity consists of $735.3 million in cash and available borrowing capacity of $136.8 million; lower capital expenditures of $50.0 million, reduced annualized selling and administrative expense of $30.0 million and reduced annualized overhead expense of $65.0 million.
GBX also generated operating cash flow in excess of $220.0 million in the quarter from decreases in working capital and robust syndication activity.
This offset a working capital increase in the first six months of the year, resulting in nine months year-to-date operating cash flow of $89.0 million.
Net earnings attributable to Greenbrier for the quarter were $27.8 million, or $0.83 per diluted share, on revenue of $762.6 million. Net earnings include a $2.5 million, net of tax, ($0.08 per share) of integration related expenses from the American Railcar Industries (ARI) acquisition and $4.8 million, net of tax, ($0.14 per share) of severance expenses.
Said CEO William Furman, "Greenbrier delivered strong operational results in the quarter while maintaining a constant focus on the safety and health of our employees through the pandemic and its related economic shocks.
"Third-quarter performance reflects our near-term priorities of keeping our factories operating under essential industry status, significantly increasing liquidity and adjusting our capacity to align with our evolving demand expectations."
GBX shares galloped $2.92, or 13.4%, to $24.64.
