Press Releases

Greenbrier Announces Third Quarter Results, Growth in Backlog

The Greenbrier Companies, Inc. announced today a net loss of $2.0 million, or $.14 per share, on revenues of $91 million for its third quarter ended May 31, 2002. This compares to a net loss of $1.3 million, or $.09 per share, on revenues of $148 million in the third fiscal quarter of 2001.

For the nine months ended May 31, 2002, net loss was $23.8 million, or $1.69 per share, on revenues of $270 million. This compares to net earnings of $1.7 million, or $.12 per share, on revenues of $459 million for the first nine months of fiscal 2001. The current year's results include special charges taken in the second quarter of $19.2 million pre-tax ($12.2 million after-tax, or $.86 per share), for write-downs of intangible assets and workforce and other reductions.

The majority of special charges and operating losses for the year to date, and for the third quarter were related to the Company's European operations. Earlier in the year, the Company reduced the scale of its European operations to decrease costs. European operating losses in the third quarter were $1.5 million, $1.1 million less than in the second quarter, and $2.7 million less than in the first quarter.

The Company's new railcar manufacturing backlog as of May 31, 2002 grew to 2,700 railcars valued at $140 million, compared to 1,900 railcars valued at $100 million at February 28, 2002. During the quarter, orders were received for 1,500 units and deliveries were 700 units.

William A. Furman, president and chief executive officer, noted, "Greenbrier continues to focus on liquidity, cash flow, and a strong balance sheet, rather than reported profits during the current downturn. Our markets are showing signs of improvement in both North America and Europe. Pricing remains intense, as excess production capacity for new railcars still exists. Greenbrier's share of the new railcar market continues to exceed its share of industry capacity. The Company experienced growth in its quarterly backlog for the first time in nearly two years. Greenbrier's backlog in North America at March 31, 2002 was about 25% of total industry backlog. We anticipate that when June 30 statistics are released, our market share will be at least as great as the prior quarter."

Furman added, "Greenbrier continues to have solid financial performance in its marine manufacturing, railcar repair and services, and leasing businesses. These businesses provided nearly 50% of total Company revenues for the year to date. We expect them to continue to provide revenue, earnings and cash flow stability during the weak new railcar market."

Mark Rittenbaum, senior vice president and treasurer, said, "The Company's balance sheet and cash flow remain strong. Cash provided by operations for the year to date was $20 million; cash balances increased during the quarter. Also during the quarter, an additional $8 million of debt was retired, bringing the total to $52 million for the year to date."

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 49,000 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 10, 2002
        7:30 am 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,
                                                     2002           2001
    Cash and cash equivalents                      $66,455        $77,299
    Accounts and notes receivable                   31,659         50,555
    Inventories                                     86,277         94,581
    Investment in direct finance leases             75,389        103,576
    Equipment on operating leases                  146,083        150,126
    Property, plant and equipment                   71,739         76,898
    Intangible assets                                9,309         26,450
    Other                                           24,273         26,695

                                                  $511,184       $606,180

  Liabilities and Stockholders' Equity
    Revolving notes                                $15,912        $32,986
    Accounts payable and accrued liabilities       130,139        135,898
    Deferred participation                          53,294         56,176
    Deferred income taxes                           17,306         26,920
    Notes payable                                  152,732        177,575

    Subordinated debt                               27,787         37,491

    Minority interest                                4,893          5,025

    Stockholders' equity                           109,121        134,109

                                                  $511,184       $606,180

                                            THE GREENBRIER COMPANIES, INC.

  (In thousands, except per share amounts, unaudited)

                           Three Months Ended          Nine Months Ended
                                May 31,                     May 31,
                           2002         2001          2002          2001
    Manufacturing        $72,217      $129,032     $213,372      $398,985
    Leasing & services    18,431        19,317       56,227        60,266
                          90,648       148,349      269,599       459,251

  Cost of revenue
    Manufacturing         69,191       116,841      207,356       366,693
    Leasing & services    12,142        10,851       33,003        32,030
                          81,333       127,692      240,359       398,723

  Margin                   9,315        20,657       29,240        60,528

  Other costs
    Selling and
     expense               8,857        13,969       28,549        38,354
    Interest expense       4,421         6,298       14,591        16,739
    Special Charges           --            --       19,212            --
                          13,278        20,267       62,352        55,093

  Earnings (loss) before
   income tax expense,
   minority interest,
   equity in unconsolidated
   subsidiary             (3,963)          390      (33,112)        5,435

  Income tax benefit
   (expense)               2,284        (1,394)      10,391        (4,168)

  Earnings (loss) before
   minority interest,
   equity in unconsolidated
   subsidiary             (1,679)       (1,004)     (22,721)        1,267

  Minority interest           35            16          132            (3)

  Equity in unconsolidated
   subsidiary               (327)         (339)      (1,251)          478

  Net earnings (loss)    $(1,971)      $(1,327)    $(23,840)       $1,742

  Basic earnings (loss)
   per common share       $(0.14)       $(0.09)      $(1.69)        $0.12

  Diluted earnings (loss)
   per common share       $(0.14)       $(0.09)      $(1.69)        $0.12

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

                                            THE GREENBRIER COMPANIES, INC.

  (In thousands, except per share amounts, unaudited)

                                                      Nine Months Ended
                                                           May 31,
                                                     2002           2001
  Cash flows from operating activities:
  Net earnings (loss)                             $(23,840)        $1,742
  Adjustments to reconcile net earnings
   (loss) to net cash provided by (used in)
   operating activities:
    Deferred income taxes                           (9,614)        (1,531)
    Deferred participation                          (2,882)         1,698
    Depreciation and amortization                   16,840         16,536
    Gain on sales of equipment                        (813)        (1,186)
    Special charges -- Impairment                   14,791             --
    Other                                              216            265
  Decrease (increase) in assets:
    Accounts and notes receivable                   18,896         (3,771)
    Inventories                                      8,998        (21,140)
    Other                                            2,318          1,831
  Decrease in liabilities:
    Accounts payable and accrued liabilities        (5,136)       (26,403)
  Net cash provided by (used in) operating
   activities                                       19,774        (31,959)
  Cash flows from investing activities:
    Acquisitions, net of cash acquired                  --           (282)
    Principal payments received under direct
     finance leases                                 14,608         15,315
    Proceeds from sales of equipment                20,461         47,328
    Purchase of property and equipment             (12,864)       (47,115)
  Net cash provided by investing activities         22,205         15,246
  Cash flows from financing activities:
    Change in revolving notes                      (17,074)        19,800
    Proceeds from notes payable                      4,250         50,801
    Repayments of notes payable                    (29,448)       (22,765)
    Repayment of subordinated debt                  (9,704)            --
    Dividends                                         (847)        (3,815)
    Purchase of Company's common stock                  --           (959)
  Net cash provided by (used in) financing
   activities                                      (52,823)        43,062

  Increase (decrease) in cash and cash
   equivalents                                     (10,844)        26,349
  Cash and cash equivalents
    Beginning of period                             77,299         12,908
    End of period                                  $66,455        $39,257


SOURCE: Greenbrier Companies, Inc.

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