LOS ANGELES, July 31 Trinity Industries Inc
on Wednesday posted second-quarter earnings that
surpassed estimates, and the company raised its outlook, thanks
to thriving demand for its tank cars used to ship crude oil by
Net income was $84 million, or $1.06 per share, compared
with $67.8 million, or 84 cents per share, a year ago.
Wall Street analysts, on average, had expected earnings of
95 cents a share, according to Thomson Reuters I/B/E/S. In May,
Trinity forecast second-quarter earnings of 88 cents to 95 cents
Revenue rose 7 percent to $1.1 billion. Analysts had
expected revenue of $1.017 billion.
For the full year, Trinity said on Wednesday it expects
earnings of $4.20 to $4.40 per share. In May, it had forecast
2013 earnings of $3.80 to $4.05 per share.
Trinity has benefited in recent years as oil companies have
increased their use of the rails to ship a gusher of shale oil
production out of remote areas not served by pipelines to
refiners eager for cheaper oil.
Trinity said its order backlog was $5.1 billion.
But as price spreads for moving sweet North Dakota or
Canadian crude to premium markets on the Gulf Coast slump to
their lowest since early 2011, companies are shifting more oil
back through pipelines rather than using costlier railcars.
Some in the industry also expect stiffer regulations for
tanker cars after 47 people died this month when a train
carrying crude oil derailed and exploded, demolishing the heart
of a small Canadian town.
Trinity both manufactures and leases tank cars.