Press Releases

Greenbrier Reports Break-Even Second Quarter; Major New Railcar Orders

The Greenbrier Companies, Inc. today announced break-even results for the second quarter ended February 28, 2001, in line with previously disclosed revised expectations. In addition, subsequent to quarter end, the company announced new orders for 2,700 railcars valued at $110 million and the completion of a $50 million private placement of senior term debt.

Revenues for the second quarter of fiscal 2001 were $157 million, down from the $173 million in the second quarter of fiscal 2000. Net earnings for the second quarter were $70 thousand, or $.00 per diluted share, down from $4.3 million, or $.30 per diluted share, in the comparable quarter of the prior fiscal year.

For the six months ended February 28, 2001, revenues were $311 million, up from $286 million in the same six-month period of fiscal 2000. Net earnings for the fiscal 2001 six month period were $3.1 million, or $.22 per diluted share, compared to $4.7 million, or $.33 per diluted share in the comparable 2000 period.

The current year's second quarter results were impacted by a reduction in North American new railcar production, timing differences between the actual production and delivery of new railcars, and lower than anticipated new railcar margins on the production of certain car types. Greenbrier currently anticipates that earnings for the fiscal year 2001 as a whole will range from $.40 - $.60 per share.

The company's new railcar manufacturing backlog, as of February 28, 2001, was 4,300 units valued at $260 million, compared to 6,200 units valued at $360 million at November 30, 2000. Subsequent to quarter end, the company announced new orders for 2,700 railcars valued at $110 million and, as a result, the company anticipates that its backlog as of May 31, 2001 will be stable or improve slightly compared to the February 28, 2001 backlog.

Bill Furman, president and chief executive officer, noted, "Overall, new railcar demand in North America remains soft. Greenbrier has performed relatively well in this environment, doubling its marketshare over the last year to over 20% of the total market. However, we are not immune to this downturn and, as a result, have significantly reduced production, laid-off personnel, and instituted cost containment measures. We believe we remain well-positioned to compete in the current intensely competitive marketplace."

The Greenbrier Companies, headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry in North America. 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 and refurbishes freight cars for the European market through its manufacturing operations in Poland and various sub-contractor facilities throughout Europe. At Greenbrier's Portland, Oregon manufacturing facility, it builds ocean-going barges for the maritime industry. Greenbrier owns or manages a fleet of approximately 44,000 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.

The Greenbrier Companies will host a teleconference to discuss second quarter results. Teleconference details are as follows:

   Tuesday, April 3, 2001
   7:30 a.m. Pacific Daylight Time
   Real-time Audio Access:  ("Newsroom" at

Please access the site 10 minutes prior to the start time. Following the call, a replay will be available on the same site.

                                           THE GREENBRIER COMPANIES, INC.

  (In thousands, except per share amounts, unaudited)

                                         February 28,          August 31,
                                                 2001                2000

    Cash and cash equivalents                 $11,283             $12,908
    Accounts and notes receivable              62,368              66,150
    Inventories                               133,979             127,484
    Investment in direct finance leases       115,171             124,780
    Equipment on operating leases             120,770             122,074
    Property, plant and equipment              79,720              77,628
    Intangible assets                          22,743              23,001
    Other                                      31,348              30,084

                                             $577,382            $584,109

  Liabilities and Stockholders' Equity
    Revolving notes                           $37,004             $13,019
    Accounts payable and
     accrued liabilities                      131,138             147,792
    Deferred participation                     55,591              54,266
    Deferred income taxes                      23,136              25,238
    Notes payable                             145,877             159,363

    Subordinated debt                          37,748              37,748

    Minority interest                           5,087               5,068

    Stockholders' equity                      141,801             141,615

                                             $577,382            $584,109

                                   THE GREENBRIER COMPANIES, INC.

  (In thousands, except per share amounts, unaudited)

                              Three Months Ended        Six Months Ended
                           Feb. 28,      Feb. 29,      Feb. 28,  Feb. 29,
                               2001          2000          2001      2000

    Manufacturing          $135,175      $149,387      $269,954  $241,182
    Leasing and services     21,743        23,436        40,948    44,643
                            156,918       172,823       310,902   285,825

  Cost of revenue
    Manufacturing           129,490       132,070       249,854   212,083
    Leasing and services     10,983        12,332        21,178    24,546
                            140,473       144,402       271,032   236,629

  Margin                     16,445        28,421        39,870    49,196

  Other costs
    Selling and
     administrative expense  10,454        16,184        24,384    28,589
    Interest expense          5,448         5,061        10,442    10,039
                             15,902        21,245        34,826    38,628

  Earnings before
   income tax expense,
   minority interest, equity
   in unconsolidated
   subsidiary                   543         7,176         5,044    10,568

  Income tax expense        (1,402)       (3,726)       (2,773)   (5,963)

  Earnings before minority
   interest, equity in
   unconsolidated subsidiary  (859)         3,450         2,271     4,605

  Minority interest             104         (397)          (19)   (1,144)

  Equity in unconsolidated
   subsidiary                   825         1,250           817     1,266

  Net earnings                  $70        $4,303        $3,069    $4,727

  Basic earnings per
   common share               $0.00         $0.30         $0.22     $0.33

  Diluted earnings per
   common share               $0.00         $0.30         $0.22     $0.33

  Weighted average common
   shares outstanding:
    Basic                    14,121        14,255        14,151    14,255
    Diluted                  14,146        14,267        14,170    14,295

SOURCE: Greenbrier Companies, Inc.

Contact: Mark Rittenbaum or Bruce Harmon, both of The Greenbrier
Companies, Inc., 503-684-7000

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