11 October 2017

Greenbrier Announces Orders For 3,900 Railcars

The Greenbrier Companies, Inc. (NYSE: GBX) has announced new orders during its fourth quarter ending August 31, 2017 - totalling 2,500 railcar units valued at $200 million.  Subsequent to quarter end, orders for another 1,400 units were received, valued at $120 million. This signals a strong start to Greenbrier's fiscal 2018 and brings total orders received since May 31, 2017 to 3,900 units.  

Greenbrier also reported it expects to exceed previously announced diluted EPS guidance of $3.45 to $3.65 for the fiscal year ended August 31, 2017 (excluding expected moderate non-cash impairment charges related to Greenbrier's interest in GBW Railcar Services).  Orders announced, comprise a broad range of railcar types including double-stack intermodal units, covered hoppers for carrying a variety of products, automotive-carrying railcars, and tank cars.

William A. Furman, Chairman and CEO said, "Order activity in the fourth quarter and early fiscal 2018 demonstrates the benefit of focusing on core North American business while we continue to gain traction internationally.  More than 25% of orders announced today originated from markets outside North America.  Greenbrier's strategy remains to sustain our foundational North American business while we simultaneously expand our international presence.  This strategy is helping to significantly grow Greenbrier's global market opportunity, bringing greater balance through the peaks and valleys of the economic cycle."

Furman continued, "In fiscal 2017, Greenbrier received orders for over 16,500 railcars in North America, Europe and Brazil valued at $1.5 billion. The number and value of railcars ordered in fiscal 2017 was more than double fiscal 2016.  This strong order activity contributed to our already diverse and high-quality backlog, providing visibility for fiscal 2018 and beyond.  Our backlog, combined with the order activity in the first month of the fiscal year, gives us continued confidence in current operating expectations.  While markets remain competitive, we expect EPS growth in fiscal 2018 to be driven by higher revenue and deliveries from domestic and foreign markets, broadening product lines, access to new global customers, and creative transactions like our recent multi-year agreement with Mitsubishi UFJ Lease & Finance."

Greenbrier expects to announce fiscal 2017 earnings and provide additional fiscal 2018 guidance on Friday, October 27.  Certain orders in this release are subject to customary documentation and completion of terms.  

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