Genesee & Wyoming Reports Traffic for February 2019

Genesee & Wyoming Inc. (G&W) (NYSE: GWR) today reported traffic volumes for February 2019.

G&W’s total traffic in February 2019 was 237,072 carloads, a decrease of 17,198 carloads, or 6.8%, compared with February 2018. G&W’s same railroad traffic in February 2019 decreased 4,429 carloads, or 1.8%, compared with G&W’s traffic in February 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 first quarter of 2019 through February was 504,866 carloads, a decrease of 26,535 carloads, or 5.0%, compared with the first quarter of 2018 through February. G&W’s same railroad traffic in the first quarter of 2019 through February decreased 1,250 carloads, or 0.2%, compared with the first quarter of 2018 through February, 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.

Highlights by Segment

• North American Operations: Traffic in February 2019 was 121,261 carloads, a decrease of 4.8% compared with February 2018. Same railroad traffic in February 2019 decreased 3.1% compared with February 2018, excluding short line lease expirations in Canada, primarily due to decreased coal & coke and lumber & forest products traffic. North American shipments were adversely impacted by severe winter weather events that affected G&W’s railroads, customers and connecting Class I carriers in G&W’s Canada, Midwest and Western Regions.
• Australian Operations: Traffic in February 2019 was 43,043 carloads, a decrease of 0.7% compared with February 2018, primarily due to decreased agricultural products traffic, partially offset by increased coal & coke traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
• U.K./European Operations: Traffic in February 2019 was 72,768 carloads, a decrease of 12.9% compared with February 2018. Same railroad traffic in February 2019 decreased 0.4% compared with February 2018, excluding traffic from ERS, primarily due to decreased minerals & stone traffic in Poland, partially offset by increased petroleum products traffic in the U.K. and coal & coke traffic in Poland.

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

The following highlights relate to North American same railroad traffic:

• Coal & coke traffic decreased 3,330 carloads, or 16.0%, primarily due to decreased shipments in G&W’s Central and Midwest regions due to the impact of winter weather events on our connecting Class I railroads.
• Lumber & forest products traffic decreased 1,571 carloads, or 13.8%, primarily due to weather-related shipment delays.
• All remaining traffic increased by a net 1,031 carloads.

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

• Agricultural products traffic decreased 3,338 carloads, or 75.9%, primarily due to a weaker 2018-2019 South Australia grain harvest.
• Coal & coke traffic increased 3,334 carloads, or 11.7%, primarily due to increased shipments in the Hunter Valley.
• All remaining traffic decreased by a net 291 carloads.

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

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

• Minerals & stone traffic decreased 1,721 carloads, or 12.6%, primarily due to decreased aggregates shipments in Poland.
• Petroleum products traffic increased 910 carloads due to new jet fuel business in the U.K.
• Coal & coke traffic increased 749 carloads, or 40.1%.
• All remaining traffic decreased by a net 202 carloads.

First Quarter of 2019 Through February

The table below sets forth summary total carloads by segment.

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

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

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

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.

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