Trinity Industries, Inc. Reports Third Quarter Results

Trinity Industries, Inc. (NYSE:TRN) today reported net income of $23.2 million, or $0.29 per common diluted share for the third quarter ended September 30, 2009. Net income for the same quarter of 2008 was $89.6 million, or $1.09 per common diluted share.

For the nine month period ended September 30, 2009, the Company reported a net loss of $152.3 million, or $2.00 per common diluted share. The results include an after tax charge of $243.3 million in the second quarter for the impairment of goodwill related to its rail businesses. Net income was $91.0 million, or $1.15 per common diluted share, excluding the charge for the impairment of goodwill. Net income for the same period in 2008 was $237.6 million, or $2.90 per common diluted share.

Revenues for the third quarter of 2009 were $557.4 million compared with revenues of $1,154.6 million for the same quarter of 2008. Revenues for the nine months ended September 30, 2009 were $2.1 billion as compared to $3.0 billion in the same period of 2008.

“We continued to improve our liquidity position and strengthen our balance sheet during the third quarter,” said Timothy R. Wallace, Trinity's Chairman, CEO, and President. “Our unrestricted cash balance rose to $545.4 million at the end of the quarter from $440.9 million as of June 30, 2009. Our businesses remained highly focused on obtaining orders that extend their production lines and reducing costs as they right-sized their capacity.”

During the third quarter of 2009, TrinityRail® shipped approximately 1,630 railcars and received orders for approximately 1,000 railcars. As of September 30, 2009, TrinityRail’s order backlog totaled approximately $264 million, representing approximately 3,160 railcars.

Trinity Industries Leasing Company (“TILC”) had approximately 49,470 railcars in its fleet as of September 30, 2009. This compares to TILC’s fleet of approximately 43,910 railcars as of September 30, 2008. Lease fleet utilization was 97.2% as of September 30, 2009.

Operating profit for the Inland Barge Group in the third quarter of 2009 was $26.7 million, as compared to $29.8 million in the same quarter of 2008. Revenues were $113.8 million in the third quarter of 2009, as compared to $160.6 million in the third quarter of 2008. The Inland Barge Group received orders worth more than $110 million during the third quarter of 2009 and had a backlog of approximately $350 million as of September 30, 2009.

The Energy Equipment Group recorded revenues of $132.7 million in the third quarter of 2009, as compared to $184.5 million in the same quarter of 2008. The Group produced operating profit of $16.2 million in the third quarter of 2009, as compared to $32.5 million in the same quarter of 2008. The order backlog for structural wind towers as of September 30, 2009 totaled approximately $1.1 billion.

Revenues in the Construction Products Group totaled $146.3 million in the third quarter of 2009, a decline of 27% from the same quarter in 2008. These businesses recorded an operating profit of $13.1 million in the third quarter of 2009, compared to $17.2 million in the third quarter of 2008.

Earnings Outlook

The Company estimates earnings of between $0.08 and $0.13 per common diluted share for the fourth quarter of 2009.

Conference Call

Trinity will hold a conference call at 11:00 a.m. Eastern on October 29, 2009 to discuss its third quarter results. To listen to the call, please visit the Investor Relations section of the Trinity Industries website, www.trin.net. An audio replay may be accessed through the Company’s website or by dialing (402) 220-2331 until 11:59 p.m. Eastern on November 7, 2009.

Trinity Industries, Inc., headquartered in Dallas, Texas, is a multi-industry company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity’s estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements. Trinity uses the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” and similar expressions to identify these forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the most recent fiscal year.

See our September 30, 2009 Quarterly Reports on Form 10Q for a discussion of the adjusted 2008 financial information resulting from the adoption of new accounting pronouncements. Certain prior year balances have been reclassified to conform to the 2009 presentations.

Trinity Industries, Inc.
Reconciliation of EBITDA
(in millions)
(unaudited)

“EBITDA” is defined as net income (loss) plus interest expense, income taxes, and depreciation and amortization including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating performance, or as an alternative to operating cash flows as a measure of liquidity. We have reported EBITDA because we regularly review EBITDA as a measure of our ability to incur and service debt. In addition, we believe our debt holders utilize and analyze our EBITDA for similar purposes. We also believe EBITDA assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA measure presented in this press release may not always be comparable to similarly titled measures by other companies due to differences in the components of the calculation.