LOS ANGELES Trinity Industries Inc (TRN.N) 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 rail.
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 a share.
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.
(Reporting by Nichola Groom; Editing by David Gregorio)