Greenbrier Books $460 Million in Railcar Orders for Q2

Greenbrier (NYSE: GBX  ) is profiting from a slowdown in rail velocity. The company today released the order tally for its just-ended Q2, saying that it had received new orders for 5,600 railcars for a total value at around $460 million. That total includes a recent order for 1,200 intermodal platforms. The remainder is a mix of small cube covered hoppers, tank cars, boxcars for paper and forest products, gondola cars for metal goods, and other railcars.

Greenbrier said that it is taking advantage of current conditions on its market, quoting its CEO William Furman as saying that "our business is benefiting from broad-based demand for all of our car types, including increased demand for intermodal platforms as intermodal loadings accelerate and rail velocity slows due to system congestion."

Going forward, the company is well placed to benefit from potential changes in legislation concerning railway transport. Following a recent catastrophe in North Dakota, legislators are considering new laws that would outlaw an older type of fuel-carrying railcar blamed for the incident. If these laws are enacted they would likely mandate the replacement of such railcars, a potential boon for manufacturers like Greenbrier. 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2862455, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:49:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement