Press Releases

Greenbrier Reports Increase in First Quarter Earnings to $.21 Per Share

The Greenbrier Companies today announced earnings for the first quarter ended November 30, 2000 of $.21 per share.

Revenues for the first quarter of fiscal 2001 were $154 million, up 36% from the $113 million in the first quarter of fiscal 2000. Net earnings for the first quarter were $3.0 million, or $.21 per diluted share, up dramatically from $.4 million, or $.03 per diluted share, in the comparable quarter of the prior fiscal year.

The company's new railcar manufacturing backlog as of November 30, 2000 remained strong at 6,200 units valued at $360 million, compared to 7,800 units valued at $440 million at August 31, 2000.

Mark Rittenbaum, vice president and treasurer, said, "Increased new railcar deliveries for the quarter, as well as improved performance from European operations led the way to the Company's solid financial results."

William A. Furman, president and chief executive officer, noted, "We remain well-positioned in the North American marketplace with long new railcar backlogs, robust intermodal railcar demand, where Greenbrier is the market leader; and our unique leasing capabilities. However, the market remains intensely competitive. As have our competitors, we have adjusted production in North America to reflect the overall slowdown in railcar demand."

Furman added, "We are pleased with our continuing momentum in the European market, where we are now operating at increased levels of profitability. It is anticipated that this momentum will continue to build over the year and serve to help insulate us from the slowdown in North American operations."

The Greenbrier Companies, headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry in North America and Europe. Greenbrier builds new railroad freight cars in the U.S., Canada and Mexico, and repairs and refurbishes freight cars and wheels at eleven locations across North America. The company also builds new railroad freight cars for the European market through its manufacturing operations in Poland. At Greenbrier's Portland, Oregon manufacturing facility, it builds ocean-going barges for the maritime industry. Greenbrier owns or manages a fleet of approximately 39,000 railcars.

Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements as to expectations, beliefs and future financial performance. These forward-looking statements are dependent on a number of factors, business risks and issues, a change in which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such factors, risks and issues are set forth from time to time under "Forward-Looking Statements," in Management's Discussion and Analysis of Financial Condition and Results of Operations in Greenbrier's SEC filings and reports. Any forward-looking statement speaks only as of the date on which such statement is made. Greenbrier undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.


  (In thousands, unaudited)

                                                November 30,    August 31,
                                                    2000           2000

    Cash and cash equivalents                       $5,610         12,908
    Accounts and notes receivable                   60,842         66,150
    Inventories                                    130,379        127,484
    Investment in direct finance leases            119,821        124,780
    Equipment on operating leases                  161,752        122,074
    Property, plant and equipment                   77,713         77,628
    Intangibles assets                              22,021         23,001
    Other                                           32,082         30,084
                                                  $610,220       $584,109

  Liabilities and stockholders' equity
    Revolving notes                                $61,351        $13,019
    Accounts payable and accrued liabilities       134,282        147,792
    Deferred participation                          55,011         54,266
    Deferred income taxes                           22,814         25,238
    Notes payable                                  152,448        159,363

    Subordinated debt                               37,748         37,748

    Minority interest                                5,095          5,068

    Stockholders' equity                           141,471        141,615
                                                  $610,220       $584,109


  (In thousands, except per
   share amounts, unaudited)

                                                     Three Months Ended
                                                         November 30,
                                                    2000           1999
    Manufacturing                                 $134,779        $91,749
    Leasing and services                            19,205         21,253
                                                   153,984        113,002

  Cost of revenue
    Manufacturing                                  120,364         80,013
    Leasing and services                            10,195         12,214
                                                   130,559         92,227

  Margin                                            23,425         20,775

  Other costs
    Selling and administrative expense              13,930         12,405
    Interest expense                                 4,994          4,978
                                                    18,924         17,383

  Earnings before income tax expense,
   minority interest and equity in
   unconsolidated subsidiary                         4,501          3,392

  Income tax expense                                (1,371)        (2,237)

  Earnings before minority interest
   and equity in unconsolidated subsidiary           3,130          1,155

  Minority interest                                   (123)          (746)

  Equity in unconsolidated subsidiary                   (8)            15

  Net earnings                                      $2,999           $424

  Basic earnings per share                           $0.21          $0.03

  Diluted earnings per share                         $0.21          $0.03

  Weighted average shares outstanding:
    Basic                                           14,179         14,255
    Diluted                                         14,194         14,305

SOURCE: Greenbrier Companies

Contact: Mark Rittenbaum or Bruce Harmon of The Greenbrier Companies,

Company News On-Call: or fax,
800-758-5804, ext. 327175