Genesee & Wyoming Reports Traffic for June 2016 and the Second Quarter of 2016

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for June 2016 and the second quarter of 2016.

G&W’s traffic in June 2016 was 244,197 carloads, a decrease of 10,016 carloads, or 3.9%, compared with June 2015.

G&W’s traffic in the second quarter of 2016 was 706,916 carloads, a decrease of 40,956 carloads, or 5.5%, compared with the second quarter of 2015.

The table below sets forth summary total carloads by segment for June 2016 and June 2015.

June 2016 Highlights by Segment

• North American Operations: Traffic in June 2016 was 131,338 carloads, a decrease of 4.4% compared with June 2015. The decrease was primarily due to reduced shipments of coal & coke, metals, pulp & paper and minerals & stone traffic.
• Australian Operations: Traffic in June 2016 was 14,199 carloads, a decrease of 14.5% compared with June 2015. The decrease was primarily due to reduced metallic ores and agricultural products traffic.
• U.K./European Operations: Traffic in June 2016 was 98,660 carloads, a decrease of 1.6% compared with June 2015. The decrease was primarily due to reduced coal & coke and minerals & stone traffic, partially offset by increased intermodal traffic.

The table below sets forth North American Operations carload information for June 2016 and June 2015 by commodity group.

• North American Operations traffic decreased 6,048 carloads, or 4.4%.
• Coal & coke traffic decreased 2,361 carloads, or 12.3%, primarily due to decreased shipments of utility coal in G&W’s Northeast and Midwest regions.
• Metals traffic decreased 1,472 carloads, or 11.4%, primarily due to decreased shipments in G&W’s Southern and Canada Regions.
• Pulp & paper traffic decreased 1,264 carloads, or 8.3%, primarily due to decreased shipments across most of G&W’s regions.
• Minerals & stone traffic decreased 1,248 carloads, or 6.5%, primarily due to decreased shipments in G&W’s Central region following unseasonably wet weather in late May and early June 2016.
• All remaining traffic increased by a net 297 carloads.

The table below sets forth Australian Operations carload information for June 2016 and June 2015 by commodity group.

The decrease in Australian Operations traffic was primarily due to reduced metallic ores traffic as a result of the previously announced closure of a customer manganese mine and also due to reduced agricultural products traffic primarily as a result of low global crop prices.

The table below sets forth U.K./European Operations carload information for June 2016 and June 2015 by commodity group.

• U.K./European Operations traffic decreased 1,557 carloads, or 1.6%.
• Coal & coke traffic decreased 4,106 carloads, or 54.9%, primarily due to decreased shipments in the U.K. and Poland.
• Minerals & stone traffic decreased 2,159 carloads, or 13.7%, primarily due to decreased shipments in the U.K. and Poland.
• Intermodal traffic increased 4,621 carloads, or 6.0%, primarily due to increased shipments in the U.K.
• All remaining traffic increased by a net 87 carloads.

Second Quarter of 2016 Traffic

The table below sets forth summary total carloads by segment for the second quarter of 2016 and the second quarter of 2015.

The table below sets forth North American Operations carload information for the second quarter of 2016 and the second quarter of 2015 by commodity group.

The table below sets forth Australian Operations carload information for the second quarter of 2016 and the second quarter of 2015 by commodity group.

The table below sets forth U.K./European Operations carload information for the second quarter of 2016 and the second quarter of 2015 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, income from operations or net income.

G&W’s three reportable segments are summarized as follows:

• The North American Operations segment is comprised of eight operating regions in the U.S. and Canada. This segment represents approximately 60% of G&W’s total operating revenues and approximately 80% of G&W’s total income from operations.
• The Australian Operations segment is comprised of operations in South Australia, the Northern Territory and New South Wales. This segment represents approximately 10% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.
• The U.K./European Operations segment is comprised of operations in the U.K. and continental Europe. This segment represents approximately 30% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.

About G&W

Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 10 operating regions with 7,500 employees and more than 2,800 customers.

• G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
• G&W’s U.K./European Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

For more information, visit gwrr.com.

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