UPDATE: Genesee & Wyoming Q4 Profit Misses Expectations

reported weaker-than-expected earnings for the fourth quarter. The Darien, Connecticut-based company posted quarterly net income of $87.6 million, or $1.53 per share, compared to $58.1 million, or $1.03 per share, in the year-ago period. Excluding items, the company earned $1.12 per share. Its operating revenue climbed 6.1% to $415.6 million. However, analysts were expecting earnings of $1.19 per share on revenue of $417.18 million. G&W's same railroad freight revenue rose to $298.1 million in the fourth quarter from $297.5 million, while same railroad non-freight revenue climbed to $96.8 million from $94.2 million. G&W's traffic rose 8.1%, to 510,141 carloads in the quarter. Its income from operations surged 19.7% to $113.5 million, while adjusted income from operations jumped 18.4% to $113.4 million in the quarter. Adjusted operating ratio widened 2.9 percentage points to 72.7% in the quarter. Jack Hellmann, President and CEO of G&W, said, "Our financial results for the fourth quarter of 2014 were solid, as our North American operations performed well thanks to a good U.S. economy, which more than offset weakness in our Australian operations. In the fourth quarter, G&W's revenues increased 6%, our operating ratio improved 3.1 percentage points to 72.7%, and our adjusted diluted EPS increased 19.1%." Genesee & Wyoming shares gained 0.51% to close at $86.20 yesterday.