Press Releases

Greenbrier Reports First Quarter Loss; Will Not Pay Quarterly Dividend
PRNewswire-FirstCall
LAKE OSWEGO, Ore.

The Greenbrier Companies, Inc. today announced a net loss of $5.0 million for its first quarter ending November 30, 2001, on declining manufacturing revenues and margins and increased losses from its international operations, particularly in Europe. The Company cited a weak market in North America as contributing to reduced manufacturing revenue and lower margins and said that it would reduce the scale of its European operation to adjust to present market conditions. The Company also announced it would not pay its regular quarterly dividend in light of the present market downturn.

Revenues for the first quarter of fiscal 2002 were $80 million, down from $154 million in the first quarter of fiscal 2001. The Company's new railcar deliveries for the quarter of 1,100 units were half that in the prior year's first quarter and backlogs continue to decline. Net loss for the quarter ended November 30, 2001 was $5.0 million, or $.36 per diluted share, compared to net earnings of $3.0 million, or $.21 per diluted share, in the comparable quarter of the prior fiscal year.

The Company's new railcar manufacturing backlog as of November 30, 2001 was 2,400 units valued at $130 million, compared to 3,700 units valued at $200 million at August 31, 2001.

William A. Furman, president and chief executive officer, noted, "Market conditions in the North American rail supply industry remain depressed and this condition has also spread to Europe. This has hit our railcar manufacturing segment very hard. While Greenbrier has been able to grow its new railcar market share to over 20% in North America, industry order rates are down more than 75% from three years ago and price competition is fierce. On the other hand, our leasing, railcar repair, marine and industrial forge businesses continue to do reasonably well. These segments account for about $160 million in annual revenue. Greenbrier has consolidated its North American new railcar production at its Gunderson facility in Portland, Oregon. Commencing in January, its other two new railcar facilities, Gunderson-Concarril and TrentonWorks, will be temporarily shut down. The Company's European operations were a major factor in first quarter losses for the entire company. We are reducing our scale of operation in Europe to match present market circumstances. Management is aggressively pursuing means to improve the financial performance in Europe."

Mark Rittenbaum, senior vice president and treasurer, said: "Greenbrier continues to maintain a strong liquidity position with cash balances of $69 million and unused bank lines of almost $110 million at the end of the quarter. Paydowns of indebtedness aggregating $18 million were also made during the quarter. European operations accounted for over $4 million of the reported $5 million first quarter loss. Nearly 30% of the losses in Europe were due to amortization and depreciation expense, both non-cash items. Because this unit has not been profitable historically, pre-tax losses drop to the bottom line without a tax benefit and generate net operating loss carryforwards."

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 50,000 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 first quarter results. Teleconference details are as follows:

      Wednesday, January 9, 2002
      7:30 a.m. Pacific Standard Time
      Real-time Audio Access:  ("Newsroom" at http://www.gbrx.com )

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.

    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except per share amounts, unaudited)

                                                November 30,    August 31,
                                                    2001           2001
  Assets
    Cash and cash equivalents                      $68,518        $77,299
    Accounts and notes receivable                   37,114         50,555
    Inventories                                    109,226         94,581
    Investment in direct finance leases             91,813        103,576
    Equipment on operating leases                  151,361        150,126
    Property, plant and equipment                   75,388         76,898
    Intangible assets                               25,081         26,450
    Other                                           26,401         26,695

                                                  $584,902       $606,180

  Liabilities and Stockholders' Equity
    Revolving notes                                $28,289        $32,986
    Accounts payable and accrued liabilities       141,829        135,898
    Deferred participation                          55,188         56,176
    Deferred income taxes                           24,356         26,920
    Notes payable                                  168,019        177,575

    Subordinated debt                               33,818         37,491

    Minority interest                                4,982          5,025

    Stockholders' equity                           128,421        134,109

                                                  $584,902       $606,180


                      THE GREENBRIER COMPANIES, INC.

    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts, unaudited)

                                                     Three Months Ended
                                                        November 30,
                                                    2001           2000
  Revenue
    Manufacturing                                  $61,643       $134,779
    Leasing & services                              18,239         19,205
                                                    79,882        153,984

  Cost of revenue
    Manufacturing                                   58,284        120,364
    Leasing & services                              10,231         10,195
                                                    68,515        130,559

  Margin                                            11,367         23,425

  Other costs
    Selling and administrative expense              10,372         13,930
    Interest expense                                 5,487          4,994
                                                    15,859         18,924

  Earnings (loss) before income tax, minority
   interest, equity in loss of unconsolidated
   subsidiary                                      (4,492)          4,501

  Income tax benefit (expense)                          85        (1,371)

  Earnings (loss) before minority interest and
   equity in loss of unconsolidated subsidiary     (4,407)          3,130

  Minority interest                                  (128)          (123)

  Equity in loss of unconsolidated Subsidiary        (508)            (8)

  Net earnings (loss)                             $(5,043)         $2,999

  Basic earnings (loss) per common share           $(0.36)          $0.21

  Diluted earnings (loss) per common share         $(0.36)          $0.21

  Weighted average common shares outstanding:
    Basic                                           14,121         14,179
    Diluted                                         14,121         14,194


    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands, except per share amounts, unaudited)

                                                     Three Months Ended
                                                        November 30,
                                                    2001            2000
  Cash flows from operating activities:
  Net earnings (loss)                             $(5,043)         $2,999
  Adjustments to reconcile net earnings (loss)
   to net cash used in operating activities:
    Deferred income taxes                            (957)        (2,424)
    Deferred participation                           (988)            745
    Depreciation and amortization                    5,819          5,243
    Gain on sales of equipment                       (182)          (460)
    Other                                              729           (20)
  Decrease (increase) in assets:
    Accounts and notes receivable                   13,441          5,308
    Inventories                                   (18,010)       (18,849)
    Other                                              345        (2,077)
  Increase (decrease) in liabilities:
    Accounts payable and accrued liabilities         4,565       (13,499)
  Net cash used in operating activities              (281)       (23,034)
  Cash flows from investing activities:
    Principal payments received under direct
     finance leases                                  5,208          4,893
    Proceeds from sales of equipment                 3,241          2,160
    Purchase of property and equipment             (2,012)       (31,172)
  Net cash provided by (used in) investing
   activities                                        6,437       (24,119)
  Cash flows from financing activities:
    Change in revolving notes                      (4,697)         48,332
    Proceeds from notes payable                         --          1,447
    Repayments of notes payable                    (9,393)        (7,816)
    Dividends                                        (847)        (1,274)
    Purchase of treasury stock                          --          (834)
  Net cash provided by (used in) financing
   activities                                     (14,937)         39,855

  Decrease in cash and cash equivalents            (8,781)        (7,298)
  Cash and cash equivalents
    Beginning of period                             77,299         12,908
    End of period                                  $68,518         $5,610


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SOURCE: The Greenbrier Companies, Inc.

Contact: Mark Rittenbaum of The Greenbrier Companies, Inc.,
+1-503-684-7000