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Genesee & Wyoming Reports Traffic for May 2019

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DARIEN, Conn.–(BUSINESS WIRE)–Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes
for May 2019.

G&W’s total traffic in May 2019 was 264,098 carloads, a decrease of
28,998 carloads, or 9.9%, compared with May 2018. G&W’s same railroad
traffic in May 2019 decreased 16,250 carloads, or 5.8%, compared with
G&W’s traffic in May 2018, excluding carloads from G&W’s former
Continental European intermodal business (ERS), which was sold in June
2018, and short line lease expirations in Canada (Goderich-Exeter
Railway (GEXR) and Southern Ontario Railway (SOR)) in the fourth quarter
of 2018.

G&W’s traffic in the second quarter of 2019 through May was 519,745
carloads, a decrease of 43,452 carloads, or 7.7%, compared with the
second quarter of 2018 through May. G&W’s same railroad traffic in the
second quarter of 2019 through May decreased 17,065 carloads, or 3.2%,
compared with the second quarter of 2018 through May, excluding carloads
from ERS, which was sold in June 2018, and short line lease expirations
in Canada (GEXR and SOR) in the fourth quarter of 2018.

The table below sets forth summary total carloads by segment.

                     
Segment May 2019 May 2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

North American Operations 138,795 151,078 (12,283) (8.1%) (6.2%)
Australian Operations(2) 46,494 51,249 (4,755) (9.3%) (9.3%)
U.K./European Operations 78,809 90,769 (11,960) (13.2%) (2.9%)
Total G&W Operations 264,098 293,096 (28,998) (9.9%) (5.8%)

 

(1) Excludes 3,123 carloads in May 2018 from short line leases in
Canada (GEXR and SOR), which expired in the fourth quarter of 2018
and 9,625 carloads in May 2018 from ERS, which was sold in June 2018.
(2) 51.1% owned by G&W.
 

Highlights by Segment

  • North American Operations: Traffic in May 2019 was 138,795 carloads, a
    decrease of 8.1% compared with May 2018. Same railroad traffic in May
    2019 decreased 6.2% compared with May 2018, excluding short line lease
    expirations in Canada, primarily due to decreased coal & coke, metals
    and pulp & paper traffic. North American traffic in May 2019 was
    affected by severe weather and flooding.
  • Australian Operations: Traffic in May 2019 was 46,494 carloads, a
    decrease of 9.3% compared with May 2018, primarily due to decreased
    agricultural products, coal & coke and minerals & stone traffic.
    Carload information for G&W’s 51.1% owned Australian Operations is
    presented on a 100% basis.
  • U.K./European Operations: Traffic in May 2019 was 78,809 carloads, a
    decrease of 13.2% compared with May 2018. Same railroad traffic in May
    2019 decreased 2.9% compared with May 2018, excluding traffic from
    ERS, primarily due to decreased minerals & stone traffic in Poland and
    the U.K. and coal & coke traffic in the U.K., partially offset by
    increased petroleum products traffic in the U.K.

The table below sets forth North American Operations carload information
by commodity group.

                     
North American Operations: May 2019 May 2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

Agricultural Products 18,668 18,586 82 0.4% 2.2%
Autos & Auto Parts 3,422 3,078 344 11.2% 19.3%
Chemicals & Plastics 15,453 16,472 (1,019) (6.2%) (1.4%)
Coal & Coke 15,897 20,076 (4,179) (20.8%) (20.8%)
Food & Kindred Products 5,066 5,344 (278) (5.2%) (0.8%)
Intermodal 1,191 1,198 (7) (0.6%) (0.6%)
Lumber & Forest Products 12,007 13,171 (1,164) (8.8%) (8.2%)
Metallic Ores 1,354 1,587 (233) (14.7%) (14.6%)
Metals 11,572 13,930 (2,358) (16.9%) (13.2%)
Minerals & Stone 21,425 22,000 (575) (2.6%) (1.5%)
Petroleum Products 8,137 8,531 (394) (4.6%) (2.1%)
Pulp & Paper 13,225 14,652 (1,427) (9.7%) (9.5%)
Waste 5,134 5,367 (233) (4.3%) (3.7%)
Other 6,244 7,086 (842) (11.9%) (7.7%)
Total Carloads 138,795 151,078 (12,283) (8.1%) (6.2%)

 

(1) Excludes 3,123 carloads in May 2018 from short line leases in
Canada (GEXR and SOR), which expired in the fourth quarter of 2018.
 

The following highlights relate to North American same railroad traffic:

  • Coal & coke traffic decreased 4,179 carloads, or 20.8%, primarily due
    to decreased shipments in G&W’s Southern Region partially resulting
    from flooding in Arkansas that affected a connecting Class I.
  • Metals traffic decreased 1,766 carloads, or 13.2%, primarily due to
    decreased shipments in G&W’s Midwest, Northeast and Coastal regions.
  • Pulp & paper traffic decreased 1,392 carloads, or 9.5%, primarily due
    to decreased containerboard shipments in G&W’s Southern Region in part
    due to unplanned maintenance outages at several customer facilities.
  • All remaining traffic decreased by a net 1,823 carloads.

The table below sets forth carload information for G&W’s 51.1% owned
Australian Operations by commodity group.

                 
Australian Operations(1): May 2019 May 2018

Total
Change

Total %
Change

Agricultural Products 2,239 4,972 (2,733) (55.0%)
Coal & Coke 32,884 33,822 (938) (2.8%)
Intermodal 4,673 4,855 (182) (3.7%)
Metallic Ores 1,689 1,806 (117) (6.5%)
Minerals & Stone 4,984 5,773 (789) (13.7%)
Petroleum Products 25 21 4 19.0%
Total Carloads 46,494 51,249 (4,755) (9.3%)

 

(1) 51.1% owned by G&W.
 
  • Agricultural products traffic decreased 2,733 carloads, or 55.0%,
    primarily due to a weaker 2018-2019 South Australia grain harvest.
  • Coal & coke traffic decreased 938 carloads, or 2.8%, primarily due to
    decreased shipments in the Hunter Valley.
  • Minerals & stone decreased 789 carloads, or 13.7%, as gypsum traffic
    was negatively impacted due to an incident at a customer port facility.
  • All remaining traffic decreased by a net 295 carloads.

The table below sets forth U.K./European Operations carload information
by commodity group.

                     
U.K./European Operations: May 2019 May 2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

Agricultural Products 104 217 (113) (52.1%) (52.1%)
Coal & Coke 295 1,562 (1,267) (81.1%) (81.1%)
Intermodal 61,564 71,968 (10,404) (14.5%) (1.2%)
Minerals & Stone 15,626 17,022 (1,396) (8.2%) (8.2%)
Petroleum Products 1,220 1,220 NM NM
Total Carloads 78,809 90,769 (11,960) (13.2%) (2.9%)

 

(1) Excludes 9,625 carloads in May 2018 from ERS, which was sold in
June 2018.
 

The following highlights relate to U.K./European same railroad traffic:

  • Minerals & stone traffic decreased 1,396 carloads, or 8.2%, due to
    decreased shipments in Poland and the U.K.
  • Coal & coke traffic decreased 1,267 carloads or 81.1%, primarily due
    to decreased shipments in the U.K.
  • Petroleum products traffic increased 1,220 carloads due to new jet
    fuel shipments in the U.K.
  • All remaining traffic decreased by a net 892 carloads.

Second Quarter of 2019 Through May

The table below sets forth summary total carloads by segment.

                     
Segment

QTD May
2019

QTD May
2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

North American Operations 278,698 287,016 (8,318) (2.9%) (1.0%)
Australian Operations(2) 89,617 99,478 (9,861) (9.9%) (9.9%)
U.K./European Operations 151,430 176,703 (25,273) (14.3%) (2.9%)
Total G&W Operations 519,745 563,197 (43,452) (7.7%) (3.2%)

 

(1) Excludes 5,564 carloads in QTD May 2018 from short line leases
in Canada (GEXR and SOR), which expired in the fourth quarter of
2018 and 20,823 carloads in QTD May 2018 from ERS, which was sold in
June 2018.
(2) 51.1% owned by G&W.
 

The table below sets forth North American Operations carload information
by commodity group.

                     
North American Operations:

QTD May
2019

QTD May
2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

Agricultural Products 38,027 35,640 2,387 6.7% 8.8%
Autos & Auto Parts 6,145 6,160 (15) (0.2%) 5.9%
Chemicals & Plastics 31,216 30,761 455 1.5% 5.9%
Coal & Coke 32,585 39,105 (6,520) (16.7%) (16.7%)
Food & Kindred Products 10,145 10,225 (80) (0.8%) 3.0%
Intermodal 3,063 2,564 499 19.5% 19.5%
Lumber & Forest Products 24,010 25,445 (1,435) (5.6%) (5.0%)
Metallic Ores 2,582 3,005 (423) (14.1%) (14.0%)
Metals 23,542 26,447 (2,905) (11.0%) (7.3%)
Minerals & Stone 42,588 41,051 1,537 3.7% 5.2%
Petroleum Products 16,246 16,094 152 0.9% 4.2%
Pulp & Paper 26,001 27,731 (1,730) (6.2%) (6.0%)
Waste 10,242 9,812 430 4.4% 5.1%
Other 12,306 12,976 (670) (5.2%) (1.9%)
Total Carloads 278,698 287,016 (8,318) (2.9%) (1.0%)

 

(1) Excludes 5,564 carloads in QTD May 2018 from short line leases
in Canada (GEXR and SOR), which expired in the fourth quarter of
2018.
 

The table below sets forth carload information for G&W’s 51.1% owned
Australian Operations by commodity group.

                 
Australian Operations(1):

QTD May
2019

QTD May
2018

Total
Change

Total %
Change

Agricultural Products 3,963 10,032 (6,069) (60.5%)
Coal & Coke 63,171 65,198 (2,027) (3.1%)
Intermodal 8,826 9,121 (295) (3.2%)
Metallic Ores 3,483 3,692 (209) (5.7%)
Minerals & Stone 10,132 11,391 (1,259) (11.1%)
Petroleum Products 42 44 (2) (4.5%)
Total Carloads 89,617 99,478 (9,861) (9.9%)

 

(1) 51.1% owned by G&W.
 

The table below sets forth U.K./European Operations carload information
by commodity group.

                     
U.K./European Operations:

QTD May
2019

QTD May
2018

Total
Change

Total %
Change

Same
Railroad %
Change(1)

Agricultural Products 357 363 (6) (1.7%) (1.7%)
Coal & Coke 1,270 2,813 (1,543) (54.9%) (54.9%)
Intermodal 116,347 140,178 (23,831) (17.0%) (2.5%)
Minerals & Stone 31,053 33,349 (2,296) (6.9%) (6.9%)
Petroleum Products 2,403 2,403 NM NM
Total Carloads 151,430 176,703 (25,273) (14.3%) (2.9%)

 

(1) Excludes 20,823 carloads in QTD May 2018 from ERS, which was
sold in June 2018.
 

Other

The term carload represents physical railcars and estimated railcar
equivalents of commodities for which G&W is paid on a metric ton or
other measure to move freight, as well as intermodal units.

Historically, G&W has found that traffic information may be indicative
of freight revenues on its railroads. Freight revenues are revenues for
which G&W is paid on a per car, per container or per metric ton basis to
move freight. Activities such as railcar switching, port terminal
shunting, traction services and other similar freight-related services
are excluded from our traffic information as the resulting revenues are
not classified as freight revenue. Traffic information may not be
indicative of total operating revenues, operating expenses, operating
income or net income. Please refer to the documents G&W files from time
to time with the Securities and Exchange Commission, such as its Form
10-Q and 10-K, which contain additional information on G&W’s freight
traffic and segment reporting.

About G&W

G&W owns or leases 120 freight railroads organized in eight locally
managed operating regions with 8,000 employees serving 3,000 customers.

  • G&W’s six North American regions serve 41 U.S. states and four
    Canadian provinces and include 114 short line and regional freight
    railroads with more than 13,000 track-miles.
  • G&W’s Australia Region serves New South Wales, the Northern Territory
    and South Australia and operates the 1,400-mile Tarcoola-to-Darwin
    rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned
    by a consortium of funds and clients managed by Macquarie
    Infrastructure and Real Assets.
  • G&W’s UK/Europe Region includes the U.K.’s largest rail maritime
    intermodal operator and second-largest freight rail provider, as well
    as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more
than 40 major ports, rail-ferry service between the U.S. Southeast
and Mexico, transload services, contract coal loading, and industrial
railcar switching and repair.

For more information, visit gwrr.com.

Contacts

Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Senior
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com

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