Press Releases

Greenbrier Reports Third Quarter Results in Line With Earlier Revised Expectations; Declares Quarterly Dividend of $.09 per Share

The Greenbrier Companies, Inc. today announced results for the third quarter ended May 31, 2001 in line with previously disclosed expectations. The company also announced a quarterly cash dividend of $.09 per share, payable on August 15, 2001 to stockholders of record as of July 25, 2001.

Revenues for the third quarter of fiscal 2001 were $148 million, down from the $172 million in the third quarter of fiscal 2000. Net earnings before unusual charges were essentially breakeven for the third quarter ended May 31, 2001. The fiscal third quarter 2001 results include unusual charges of $1.2 million (after-tax), or $.08 per share, related to previously disclosed work force reductions and production slowdowns made in response to the continued softness in the North American railroad supply market. After unusual charges, net loss for the third quarter was $1.3 million, or $.09 per diluted share, compared to net earnings of $4.2 million, or $.30 per diluted share, in the comparable quarter of the prior fiscal year.

For the nine months ended May 31, 2001, revenues were $459 million, compared to $458 million in the same nine-month period of fiscal 2000. Net earnings for the fiscal 2001 nine month period were $1.7 million, or $.12 per diluted share, compared to $9.0 million, or $.63 per diluted share, in the comparable 2000 period.

The company continues to evaluate certain of its rail investments, which could result in other unusual charges being recorded this fiscal year. Greenbrier anticipates results to range from break-even to a small loss, for the fiscal year as a whole, prior to any charges that could result from the evaluation of certain of its rail investments.

The company's new railcar manufacturing backlog, as of May 31, 2001, was 4,600 units valued at $230 million, compared to 4,300 units valued at $260 million at February 28, 2001.

Bill Furman, president and chief executive officer, noted, "Market conditions in North America remain soft, and we are cautious as to the timing of a recovery given the present state of the economy. There are some signs that overall economic activity is responding to the fiscal and monetary policies being pursued in the U.S., and it is likely that the railroad industry will respond earlier than other sectors when a recovery does occur. Greenbrier remains well-positioned to compete in the current intensely competitive marketplace, as evidenced in part by the fact that during the quarter our backlogs increased slightly, while industry backlogs continue to decline. Greenbrier continues to aggressively manage its costs. The latest round of cost-reductions and production adjustments enhance our competitive position and keeps costs in line with our revenue base during the current downturn."

Furman added, "The company remains very liquid with a positive net cash flow. Further steps to enhance corporate liquidity were taken since the end of the second fiscal quarter, including the placement of $50 million of long-term debt, renewal of maturing bank credit facilities and syndication commitments from leasing companies to purchase new railcars on lease to third parties. The company ended the quarter with nearly $40 million in cash and $125 million in unused credit facilities. The company's Board of Directors intends to evaluate the dividend policy at the end of the fiscal year, in light of market conditions and balance sheet considerations at such time."

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 42,000 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 third quarter results. Teleconference details are as follows:

   Wednesday, July 11, 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)

                                                   May 31,       August 31,
                                                    2001            2000
   Cash and cash equivalents                       $39,257        $12,908
   Accounts and notes receivable                    69,921         66,150
   Inventories                                     129,258        127,484
   Investment in direct finance leases             109,026        124,780
   Equipment on operating leases                   128,231        122,074
   Property, plant and equipment                    78,480         77,628
   Intangible assets                                25,428         23,001
   Other                                            28,108         30,084

                                                  $607,709       $584,109

  Liabilities and Stockholders' Equity
   Revolving notes                                 $32,819        $13,019
   Accounts payable and accrued liabilities        127,893        147,792
   Deferred participation                           55,964         54,266
   Deferred income taxes                            23,707         25,238
   Notes payable                                   186,757        159,363

   Subordinated debt                                37,491         37,748

   Minority interest                                 5,072          5,068

   Stockholders' equity                            138,006        141,615

                                                  $607,709       $584,109

                                             THE GREENBRIER COMPANIES, INC.

  (In thousands, except per share amounts, unaudited)

                       Three Months Ended May 31,  Nine Months Ended May 31,

                             2001        2000         2001         2000
   Manufacturing           $129,032    $147,054     $398,985    $388,236
   Leasing and services      19,317      24,861       60,266      69,504
                            148,349     171,915      459,251     457,740

  Cost of revenue
   Manufacturing            116,841     131,041      366,693     343,124
   Leasing and services      10,851      11,817       32,030      36,363
                            127,692     142,858      398,723     379,487

  Margin                     20,657      29,057       60,528      78,253

  Other costs
   Selling and
    administrative expense   13,969      13,600       38,354      42,189
   Interest expense           6,298       5,979       16,739      16,018
                             20,267      19,579       55,093      58,207

  Earnings before income
   tax expense,
   minority interest,
   equity in earnings (loss)
   of unconsolidated
   subsidiary                   390       9,478        5,435      20,046

  Income tax expense        (1,394)     (4,928)      (4,168)    (10,891)

  Earnings (loss) before
   minority interest,
   equity in earnings (loss)
   of unconsolidated
   subsidiary               (1,004)       4,550        1,267       9,155

  Minority interest              16       (368)          (3)     (1,512)

  Equity in earnings (loss)
   of unconsolidated
     Subsidiary               (339)          59          478       1,325

  Net earnings (loss)      $(1,327)      $4,241       $1,742      $8,968

  Basic earnings (loss)
   per common share         $(0.09)       $0.30        $0.12       $0.63

  Diluted earnings (loss)
   per common share         $(0.09)       $0.30        $0.12       $0.63

  Weighted average common
   shares outstanding:
    Basic                    14,121      14,255       14,141      14,255
    Diluted                  14,121      14,255       14,165      14,275


SOURCE: The Greenbrier Companies, Inc.

Contact: Mark Rittenbaum of The Greenbrier Companies, Inc.,