Press Releases

Greenbrier's First Quarter Earnings Grow 29% to $.35 Per Share on Revenues of $218 Million; Backlog and New Order Pipeline Remain Strong; Company Executes On Strategic Initiatives

  -- Net earnings for the first quarter of fiscal 2005 were $5.4 million, or
     $.35 per diluted share, up 29% from the net earnings of $4.2 million,
     or $.28 per diluted share, for the first quarter of fiscal 2004.
  -- Revenues for the first quarter grew to $218 million, up 61% from $135
     million in the prior year's first quarter.
  -- New railcar deliveries for the quarter were 3,200 units, up 68% from
     1,900 units for the first quarter of fiscal 2004.
  -- New railcar manufacturing backlog in North America and Europe was
     10,300 units valued at $620 million at November 30, 2004 compared with
     11,500 units valued at $620 million at November 30, 2003.
  -- Greenbrier now owns 100% of Gunderson-Concarril, the builder of freight
     cars in Mexico.  In December 2004, the Company acquired Bombardier's
     50% interest in the joint venture.  As previously announced, the
     Company anticipates the acquisition will be accretive to earnings per
     share in the second half of fiscal 2005, and will provide purchasing
     and manufacturing efficiencies, while improving the quality and price
     competitiveness of the Mexican facility.
  -- The Company announced two long-term cooperation agreements with Chinese
     railcar manufacturer, Zhuzhou Rolling Stock Works (ZRSW) in December
     2004.  Greenbrier will expand its sourcing of Chinese manufactured
     parts and components for Greenbrier freight car products and expects to
     reduce its costs.  The parties will also identify design and commercial
     collaboration opportunities in China and throughout the world.

  Financial Results:

The Greenbrier Companies today reported net earnings of $5.4 million, or $.35 per diluted share, on revenues of $218 million for its first fiscal quarter ended November 30, 2004.

William A. Furman, president and chief executive officer, said, "We continue to benefit from strong demand for our products and services. Greenbrier enjoys a high market share in the principal products it builds, and industry forecasts for 2005 indicate another strong year for new railcar orders. Our backlog also remains strong, and we continue to develop a strong pipeline of potential orders. The order cycle for double-stack railcars is expected to begin in spring and summer 2005, for fiscal 2006 production. Joint supply and planning meetings are now underway with major customers. Last year, Greenbrier received many of its orders in the late spring and summer."

Furman added, "At the beginning of the fiscal year, we set out on an ambitious agenda to grow our core businesses and to reduce costs through global sourcing efforts. We continue to make substantial progress on both these fronts and intend to maintain our focus on initiatives to grow our business profitably. Our Mexican joint venture, Gunderson-Concarril, did not meet our financial objectives during the quarter. We remain confident that with Gunderson-Concarril now under Greenbrier's control, we can more effectively manage the operations. We anticipate significantly improved financial performance in Mexico, particularly starting in the second half of fiscal 2005."

Cash Flow, Liquidity, Deliveries:

Mark Rittenbaum, senior vice president and treasurer, said, "We are on pace to deliver nearly 13,000 railcars in fiscal 2005, significantly exceeding last year's record deliveries of 10,800 units. EBITDA for the quarter was $17.3 million, compared with $14.7 million in the prior comparable quarter. Although we experienced manufacturing margin compression for the quarter, compared with the prior comparable quarter, our manufacturing margin of 8.8% was in line with the margin for all of fiscal 2004 of 8.9%. In addition, our leasing and services segment continues to deliver strong cash flow and margins."

Rittenbaum added, "The increased usage of our revolving credit lines is consistent with increased working capital needs associated with operating at higher production rates. We remain very liquid, with unused lines of credit of $90 million."

The Greenbrier Companies (, headquartered in Lake Oswego, OR, is a leading supplier of transportation equipment and services to the railroad industry. In addition to building new railroad freight cars in the U.S., Canada, and Mexico and to repairing and refurbishing freight cars and wheels at 13 locations across North America, Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 11,000 railcars, and performs management services for approximately 123,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release may contain forward-looking statements. Greenbrier uses words such as "anticipate," "believe," "plan," "expect," "future," "intend" and similar expressions to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, actual future costs and the availability of materials and a trained workforce; steel price increases and scrap surcharges; changes in product mix and the mix between manufacturing and leasing & services segment; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment; all as may be discussed in more detail under the heading "Forward Looking Statements" on pages 3 through 4 of Part I of our Annual Report on Form 10-K for the fiscal year ended August 31, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. We undertake no obligation to revise or publicly release the results of any revision to these forward- looking statements.

The Greenbrier Companies will host a teleconference to discuss first quarter fiscal 2005 results. Teleconference details are as follows:

    Monday, January 10, 2005
    8:00 am Pacific Standard Time
    Phone #:  630-395-0143, Password:  "Greenbrier"

    Webcast Real-time Audio Access:  ("Newsroom" at )

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

   Condensed Consolidated Balance Sheets
   (In thousands, unaudited)

                                                   November 30,  August 31,
                                                      2004          2004
    Cash and cash equivalents                       $16,305       $12,110
    Restricted cash                                   1,195         1,085
    Accounts and notes receivable                   150,627       120,007
    Inventories                                     126,115       113,122
    Investment in direct finance leases              17,125        21,244
    Equipment on operating leases                   169,517       162,258
    Property, plant and equipment                    58,083        56,415
    Other                                            21,179        22,512
                                                   $560,146      $508,753

  Liabilities and Stockholders' Equity
    Revolving notes                                 $44,723        $8,947
    Accounts payable and accrued liabilities        177,448       178,550
    Participation                                    37,513        37,107
    Deferred revenue                                  8,708         2,550
    Deferred income taxes                            26,666        26,109
    Notes payable                                    96,670        97,513

    Subordinated debt                                13,350        14,942

    Subsidiary shares subject to
     mandatory redemption                             3,746         3,746

    Stockholders' equity                            151,322       139,289
                                                   $560,146      $508,753

                                            THE GREENBRIER COMPANIES, INC.

   Condensed Consolidated Statements of Operations
   (In thousands, except per share amounts, unaudited)

                                                   Three Months Ended
                                                        November 30,
                                                    2004           2003
    Manufacturing                                 $200,397       $117,303
    Leasing & services                              17,651         17,896
                                                   218,048        135,199
  Cost of revenue
    Manufacturing                                  182,862        104,589
    Leasing & services                              10,380         10,837
                                                   193,242        115,426

  Margin                                            24,806         19,773

  Other costs
    Selling and administrative expense              12,072         10,060
    Interest and foreign exchange                    3,059          2,601
                                                    15,131         12,661

  Earnings before income taxes and equity
   in loss of unconsolidated subsidiaries            9,675          7,112

  Income tax expense                               (3,554)        (2,639)
  Earnings before equity in loss of
   unconsolidated subsidiaries                       6,121          4,473

  Equity in loss of unconsolidated
   subsidiaries                                      (731)          (318)

  Net earnings                                      $5,390         $4,155

  Basic earnings per common share                    $0.36          $0.29

  Diluted earnings per common share                  $0.35          $0.28

  Weighted average common shares:
    Basic                                           14,894         14,353
    Diluted                                         15,504         14,890

                                            THE GREENBRIER COMPANIES, INC.

   Condensed Consolidated Statements of Cash Flows
   (In thousands, unaudited)

                                                      Three Months Ended
                                                         November 30
                                                     2004           2003

  Cash flows from operating activities:
    Net earnings                                    $5,390         $4,155
    Adjustments to reconcile net earnings to
     net cash used in operating activities:
      Deferred income taxes                            845          2,988
      Depreciation and amortization                  5,285          5,297
      Gain on sales of equipment                      (86)          (146)
      Other                                             10            757
      Decrease (increase) in assets:
        Accounts and notes receivable             (25,993)        (5,062)
        Inventories                                (5,863)       (14,657)
        Other                                        2,299          1,349
      Increase (decrease) in liabilities:
        Accounts payable and accrued
         liabilities                              (10,426)       (12,183)
        Participation                                  406            477
        Deferred revenue                             5,624        (1,887)
  Net cash used in operating activities           (22,509)       (18,912)

  Cash flows from investing activities:
    Principal payments received under
     direct finance leases                           1,832          2,857
    Proceeds from sales of equipment                 2,460          4,057
    Investment in and advances to
     unconsolidated joint venture                     (57)        (1,005)
    Decrease (increase) in restricted cash              --          1,098
    Capital expenditures                          (12,395)        (9,615)
    Net cash used in investing activities          (8,160)        (2,608)

  Cash flows from financing activities:
    Changes in revolving notes                      34,363            183
    Repayments of notes payable                    (2,280)        (4,770)
    Repayment of subordinated debt                 (1,592)        (1,998)
    Proceeds from exercise of stock options            174            535
    Purchase of subsidiary shares subject
     to mandatory redemption                            --          (968)
    Net cash provided by (used in)
     financing activities                           30,665        (7,018)

    Effect of exchange rate change                   4,199          3,266

  Increase (decrease) in cash and
   cash equivalents                                  4,195       (25,272)

  Cash and cash equivalents
    Beginning of period                             12,110         77,298

    End of period                                  $16,305        $52,026

                                           THE GREENBRIER COMPANIES, INC.

   Supplemental Disclosure
   Reconciliation of Net Cash Provided by
   Operating Activities to EBITDA (1)
   (In thousands, unaudited)

                                                    Three Months Ended
                                                       November 30
                                                   2004           2003

  Net cash used in operating activities          $(22,509)      $(18,912)
  Changes in working capital                        33,953         31,963
  Deferred income taxes                              (845)        (2,988)
  Gain on sales of equipment                            86            146
  Other                                               (10)          (757)
  Income tax expense                                 3,554          2,639
  Interest and foreign exchange                      3,059          2,601

  EBITDA from operations                           $17,288        $14,692

   (1) "EBITDA" (earnings from continuing operations before interest and
       foreign exchange, taxes, depreciation and amortization) is a useful
       liquidity measurement tool commonly used by rail supply companies and
       Greenbrier.  It should not be considered in isolation or as a
       substitute for cash flows from operating activities or cash flow
       statement data prepared in accordance with generally accepted
       accounting principles.

SOURCE: The Greenbrier Companies

CONTACT: Mark Rittenbaum of The Greenbrier Companies, +1-503-684-7000