Trinity Industries, Inc. reported net income attributable to Trinity stockholders of $66.9 million, or $0.43 per common diluted share, for the third quarter ended Sept. 30, 2017. Net income for the same quarter of 2016 was $84.2 million, or $0.55 per common diluted share. Revenues for the third quarter of 2017 totaled $973.6 million compared to revenues of $1.1 billion for the same quarter of 2016.
“Our financial results for the third quarter were better than we expected, primarily due to the performance of our railcar leasing business,” said Timothy R. Wallace, Trinity’s chairman, CEO and president. “Profit for the railcar leasing business increased 50 percent year-over-year, resulting from solid operating results and a significant volume of leased railcar sales. In general, the market environment for many of our businesses remains highly challenging.”
The Railcar Leasing and Management Services Group reported revenues and operating profit of $275.1 million and $120.6 million, respectively, in the third quarter of 2017, an increase of 58.4 percent and 49.8 percent, respectively, compared to the same quarter of 2016.The increases in revenues and operating profit reflect higher leased railcar sales and asset management advisory fees. The increase in operating profit was partially offset by an increase in fleet maintenance and compliance expenses.
The Inland Barge Group reported revenues of $28.1 million in the third quarter of 2017 compared to revenues of $98.9 million in the third quarter of 2016. Operating loss for this group was $0.7 million in the third quarter of 2017 compared to a profit of $11.7 million in the third quarter of 2016. The decreases in revenues and operating profit compared to the same quarter last year were primarily due to significantly lower barge deliveries. The Inland Barge Group received orders of $63.4 million during the quarter and, as of Sept., 30, 2017, had a backlog of $126.0 million compared to a backlog of $90.7 million as of June 30, 2017.
The Construction Products Group reported revenues of $131.9 million in the third quarter of 2017 compared to revenues of $139.8 million in the third quarter of 2016. Operating profit and profit margin were $16.9 million and 12.8 percent in the third quarter of 2017 compared to $23.8 million and 17.0 percent in the same quarter last year.
The decreases in revenues and operating profit compared to the same quarter last year were primarily due to lower volumes in its highway products and construction aggregates businesses, partially offset by higher volumes in the group’s other product lines due to the acquisition of a trench shoring business during the quarter. Additionally, one of the company’s highway products plants experienced an equipment failure in August that reduced operating profit by approximately $2.0 million.