Genesee & Wyoming Reports Traffic for June 2018

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for June 2018 and the second quarter of 2018.

G&W’s total traffic in June 2018 was 271,166 carloads, a decrease of 3,422 carloads, or 1.2%, compared with June 2017. G&W’s same railroad traffic in June 2018 increased 5,740 carloads, or 2.2%, compared with G&W’s traffic in June 2017, excluding carloads from G&W’s former Continental European intermodal business (ERS), which was sold in June 2018.

G&W’s total traffic in the second quarter of 2018 was 834,363 carloads, an increase of 24,281 carloads, or 3.0%, compared with the second quarter of 2017. G&W’s same railroad traffic in the second quarter of 2018 was 812,297 carloads, an increase of 29,863, or 3.8%, compared with G&W’s same railroad traffic in the second quarter of 2017. Second quarter same railroad traffic excludes all traffic from ERS in Q2 2018 and Q2 2017 as well as April 2018 and May 2018 traffic from the Heart of Georgia Railroad, Inc. (HOG) which was acquired on May 31, 2017.

The table below sets forth summary total carloads by segment.

Highlights by Segment

• North American Operations: Traffic in June 2018 was 143,337 carloads, an increase of 5.7% compared with June 2017, primarily due to metals, coal & coke and other commodity group traffic.
• Australian Operations: Traffic in June 2018 was 48,487 carloads, an increase of 5.4% compared with June 2017, primarily due to increased coal & coke traffic, partially offset by decreased metallic ores and agricultural products traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
• U.K./European Operations: Traffic in June 2018 was 79,342 carloads, a decrease of 14.6% compared with June 2017. Excluding traffic from ERS, same railroad traffic in June 2018 was 79,342 carloads, a decrease of 5.3% compared with same railroad traffic in June 2017 of 83,774 carloads, primarily due to decreased intermodal traffic in the U.K.

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

• Metals traffic increased 2,788 carloads, or 24.1%, primarily due to increased scrap steel and coil shipments in G&W’s Southern Region and scrap steel in G&W’s Midwest Region.
• Coal & coke traffic increased 2,728 carloads, or 15.6%, primarily due to increased shipments in G&W’s Midwest and Northeast regions, partially offset by decreased shipments in G&W’s Central Region.
• Other commodity group traffic increased 1,633 carloads, or 30.0%, primarily due to increased empty overhead car shipments in most G&W regions.
• All remaining traffic increased by a net 534 carloads.

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

• Coal & coke traffic increased 4,748, or 17.4%, primarily due to increased spot coal shipments for various customers in the Hunter Valley.
• Metallic ores traffic decreased 1,080 carloads, or 36.3%, primarily due to the planned, temporary shutdown of an iron ore mine in October 2017.
• Agricultural products traffic decreased 1,029 carloads, or 19.9%, primarily due to a weaker 2017-2018 harvest in South Australia.
• All remaining traffic decreased by a net 150 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.

• Intermodal traffic decreased 5,517 carloads, or 8.3%, due to decreased shipments in the U.K. in part due to operational issues at a U.K. port.
• All remaining traffic increased by a net 1,085 carloads.

Second Quarter of 2018 Traffic

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 121 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

• G&W’s seven North American regions serve 41 U.S. states and four Canadian provinces and include 115 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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