April 7, 2010 / 11:00 AM / 8 years ago

UPDATE 2-Greenbrier posts wider-than-expected Q2 loss

* Q2 loss/shr $0.28 vs est loss/shr $0.23

* Rev down 30 pct to $200 mln

* Says continues to expect lower rev in 2010

* Says business visibility to remain limited in 2010

(Recasts; Adds details)

April 7 (Reuters) - Railroad equipment supplier Greenbrier Cos Inc (GBX.N) posted a wider-than-expected quarterly loss hurt by higher expenses, and said it continues to expect lower revenue in 2010 compared with 2009.

“While overall visibility remains limited, we are seeing improvements in railcar loadings, declining railroad velocity, and declines in the quantity of railcars in storage,” Chief Executive William Furman said in a statement.

Greenbrier and peers such as FreightCar America (RAIL.O) and American Railcar (ARII.O) have been hit by a weak freight environment that has led to low levels of railroad traffic and high levels of storage for idle railcars.

    For the second quarter, Greenbrier posted a loss of $4.8 million, or 28 cents a share, compared with a loss of $7.5 million, or 45 cents a share a year ago.

    The latest quarter’s results of the company, in which activist investor Carl Icahn had a 4.92 percent stake as of July 2008, include non-cash charges of 8 cents a share.

    Revenue of the company, whose customers include Union Pacific Corp (UNP.N) and General Electric Co (GE.N), fell 30 percent to $200 million, while interest and foreign exchange costs rose 36 percent to $12.4 million.

    Analysts on average had expected a loss of 23 cents a share, before special items, on revenue of $178.3 million, according to Thomson Reuters I/B/E/S.

    Shares of the company closed at $12.07 Tuesday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Don Sebastian)

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