* Says to add 260 jobs
* Co says may lose key marine barge order
* Says to cut production of marine barges
* Says marine revenue, margins to fall if deal goes
* Shares rise as much as 8 pct
(Recasts throughout; adds background, details)
Aug 25 Greenbrier Cos Inc (GBX.N) said it
received about $130 million worth of new railcar and
refurbishment orders and plans to add jobs at its plant, in a
sign that the nascent recovery in the railcar market is on
Shares of the company were up 4 percent at $9.90 in late
morning trade Wednesday on the New York Stock Exchange. They
touched a high of $10.30 in early trade. The stock has shed
nearly a quarter of its value in the last 12 months due to
uncertainties in the freight market.
The company's railcar business, which accounts for a major
chunk of its revenue, has been picking up steadily this year as
long-idled railcars come out of storage and are in need of
In a statement, Greenbrier said it received orders for more
than 1,000 new double-stack intermodal containers and covered
hopper cars, which are used to transport commodities like coal
and iron ore.
It will also re-engineer and modify about 1,100 existing
double-stack platforms, which are large-sized cargo containers,
from smaller dimensions.
The orders are from five separate customers including major
railroad and leasing companies in North America, the company
said. Some of Greenbrier's biggest railcar customers include GE
(GE.N), and railroad operators BNSF and Union Pacific (UNP.N).
In April, the company acquired a lease portfolio of nearly
4,000 railcars along with private equity form WL Ross & Co.
Lake Oswego, Oregon-based Greenbrier, which competes with
American Railcar (ARII.O) and FreightCar America (RAIL.O), will
also add 260 employees at its Gunderson facility by recalling
furloughed workers or hiring new ones.
WEAK MARINE UNIT
The company's marine market continues to remain uncertain
as it indicated it may lose a contract from a top customer.
Greenbrier said if the orders are cancelled, it plans to
cut production of barges and plans to divert about 175 workers
from its marine barge construction facility to new railcar
Faced with the possible loss of the large order, Greenbrier
said it was in talks with the customer, which accounts for 85
percent of its marine order backlog of $75 million, for
modification of the contract.
The company said the loss or postponement of the contract
could reduce revenue and margins at its marine unit in the
fourth quarter and the next fiscal year.
Greenbrier did not identify the customer but its annual
filing shows that ocean transportation and logistics firm
Crowley Maritime is one of its top marine customers.
The news follows Greenbrier's decision earlier this year to
cut production of marine barges due to uncertainty caused by
the Gulf of Mexico oil spill and other regulatory issues.
The company was faced with a similar situation about a year
back when one of its railcar customers, GE (GE.N), wanted a
renegotiation of a contract due to weak freight market.
In December 2009, GE modified contract terms with
Greenbrier to cut a railcar supply order by half to 6,000
(Reporting by A.Ananthalakshmi in Bangalore; Editing by
Saumyadeb Chakrabarty and Gopakumar Warrier)