-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QDsdBqcuXDoKBil3zDu8UNMxwbd0RAP3knRPMOmkmlF222LiGCNHeHQOsaFSF+ZJ DwpuUQsrW1oMU8EwZflswQ== 0000950134-02-010796.txt : 20020830 0000950134-02-010796.hdr.sgml : 20020830 20020830112310 ACCESSION NUMBER: 0000950134-02-010796 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020830 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020830 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRINITY INDUSTRIES INC CENTRAL INDEX KEY: 0000099780 STANDARD INDUSTRIAL CLASSIFICATION: RAILROAD EQUIPMENT [3743] IRS NUMBER: 750225040 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06903 FILM NUMBER: 02753697 BUSINESS ADDRESS: STREET 1: 2525 STEMMONS FREEWAY CITY: DALLAS STATE: TX ZIP: 75207-2401 BUSINESS PHONE: 2146314420 FORMER COMPANY: FORMER CONFORMED NAME: TRINITY STEEL CO INC DATE OF NAME CHANGE: 19720407 8-K 1 d99548e8vk.txt FORM8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 30, 2002 TRINITY INDUSTRIES, INC. DELAWARE 1-6903 75-0225040 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.) 2525 STEMMONS FREEWAY, DALLAS, TEXAS 75207-2401 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 631-4420 ================================================================================ Item 5. Other Events As of December 31, 2001, the Registrant modified its segment reporting to align the reportable segments with current management responsibilities and internal reporting. The modified segment information was presented in the Registrant's annual report on Form 10-K filed March 20, 2002. The periods presented included the nine month's ended December 31, 2001 and fiscal years ended March 31, 2001 and 2000. In September 2001, the Registrant changed its year-end from March 31 to December 31. Segment information in the new reporting format is presented in this filing for each of the four quarters in the calendar years 2001, 2000 and 1999. Management's Discussion and Analysis of Financial Condition and Results of Operations for the 2001 and 2000 quarters are included for additional analysis. Item 7. Exhibits (c) Exhibits Exhibit 99.1 - Quarterly Segment Information for calendar years 2001, 2000, and 1999 and Supplemental Management's Discussion and Analysis of Operating Results for the 2001 and 2000 quarters. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TRINITY INDUSTRIES, INC. By: /s/ Jim S. Ivy --------------------------------- Jim S. Ivy Senior Vice President & Chief Financial Officer Date: August 30, 2002 3 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 99.1 Quarterly Segment Information for calendar years 2001, 2000, and 1999 and Supplemental Management's Discussion and Analysis of Operating Results for the 2001 and 2000 quarters.
EX-99.1 3 d99548exv99w1.txt QUARTERLY SEGMENT INFORMATION EXHIBIT 99.1 Trinity Industries, Inc. Basis of Presentation As of December 31, 2001, the Company (or "Trinity") modified its segment reporting to align the reportable segments with current management responsibilities and internal reporting. The modifications consisted primarily of combining the Company's railcar manufacturing operations with its railcar parts and components businesses to form the Trinity Rail Group, combined the leasing and managing of railcars into the Trinity Railcar Leasing and Management Services Group (this group also includes the sale of railcars from the lease fleet), and moved the fittings operations to the Construction Products Group. Trinity's Form 10-K for the nine months ended December 31, 2001, filed March 20, 2002, presented segment information in the changed format for the nine months ended December 31, 2001 and for fiscal years ended March 31, 2001 and 2000. In September, 2001, Trinity changed its year-end to December 31 from March 31. Presented in this exhibit is segment information, in the new reporting format, for each of the four quarters in the calendar years 2001, 2000 and 1999. Supplemental Management's Discussion and Analysis of Operating Results comparing by quarter years 2001 to 2000 and years 2000 to 1999 are included for additional analysis. The new reporting format includes the following business segments: (1) the Trinity Rail group, which manufactures and sells railcars and component parts; (2) the Construction Products group, which manufactures and sells highway guardrail and safety products, concrete and aggregate, girders and beams used in the construction of highway and railway bridges, and weld fittings used in pressure piping systems; (3) the Inland Barge group, which manufactures and sells barges and related products for inland waterway services; (4) the Industrial Products group, which manufactures and sells container heads and pressure and non-pressure containers for the storage and transportation of liquefied gases and other liquid and dry products; and (5) the Trinity Railcar Leasing and Management Services group, which provides services such as fleet management and leasing. Finally, All Other includes the Company's captive insurance and transportation companies, structural towers, and other peripheral businesses. 4 TRINITY INDUSTRIES, INC. Quarterly Segment Information Year Ended December 31, 2001 (in millions) (unaudited)
REVENUES: Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 2001 2001 2001 2001 Dec. 31, 2001 --------- --------- --------- --------- ------------- Trinity Rail Group Outside $ 178.7 $ 187.9 $ 95.5 $ 237.9 $ 700.0 Intersegment 114.7 50.4 48.8 43.6 257.5 --------- --------- --------- --------- --------- Total 293.4 238.3 144.3 281.5 957.5 Construction Products Group Outside 116.6 155.7 144.5 127.0 543.8 Intersegment 1.5 2.1 1.7 1.2 6.5 --------- --------- --------- --------- --------- Total 118.1 157.8 146.2 128.2 550.3 Inland Barge Group Outside 58.4 49.6 50.6 48.0 206.6 Intersegment 0.1 -- -- -- 0.1 --------- --------- --------- --------- --------- Total 58.5 49.6 50.6 48.0 206.7 Industrial Products Group Outside 33.2 31.0 38.8 36.9 139.9 Intersegment 5.3 0.7 0.8 0.8 7.6 --------- --------- --------- --------- --------- Total 38.5 31.7 39.6 37.7 147.5 Railcar Leasing & Manage- ment Services Group 20.1 26.5 24.6 42.9 114.1 All Other Outside 11.7 16.9 18.9 14.6 62.1 Intersegment 15.8 10.1 9.4 8.6 43.9 --------- --------- --------- --------- --------- Total 27.5 27.0 28.3 23.2 106.0 Eliminations (137.4) (63.3) (60.7) (54.2) (315.6) --------- --------- --------- --------- --------- Consolidated Total $ 418.7 $ 467.6 $ 372.9 $ 507.3 $ 1,766.5 ========= ========= ========= ========= =========
OPERATING PROFIT (LOSS): Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 2001 2001 2001 2001 Dec. 31, 2001 --------- --------- --------- --------- ------------- Trinity Rail Group $ (38.6) $ 4.0 $ (3.6) $ (66.2) $ (104.4) Construction Products Group 3.3 16.8 17.8 11.0 48.9 Inland Barge Group 1.8 2.9 2.1 4.8 11.6 Industrial Products Group (1.1) (0.4) 2.4 1.9 2.8 Railcar Leasing & Manage- ment Services Group 7.8 10.1 9.1 11.0 38.0 All Other (14.7) (3.2) (2.0) (15.9) (35.8) Eliminations & Corporate Items (16.7) (7.6) (7.0) (4.4) (35.7) --------- --------- --------- --------- --------- Consolidated Total $ (58.2) $ 22.6 $ 18.8 $ (57.8) $ (74.6) ========= ========= ========= ========= =========
5 TRINITY INDUSTRIES, INC. Quarterly Segment Information Year Ended December 31, 2000 (in millions) (unaudited)
REVENUES: Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 2000 2000 2000 2000 Dec. 31, 2000 --------- --------- --------- --------- ------------- Trinity Rail Group Outside $ 370.6 $ 249.0 $ 226.2 $ 164.1 $ 1,009.9 Intersegment 30.6 25.8 43.8 97.4 197.6 --------- --------- --------- --------- --------- Total 401.2 274.8 270.0 261.5 1,207.5 Construction Products Group Outside 134.5 154.9 155.5 122.0 566.9 Intersegment 2.3 3.1 3.6 2.9 11.9 --------- --------- --------- --------- --------- Total 136.8 158.0 159.1 124.9 578.8 Inland Barge Group 54.3 51.7 51.7 41.1 198.8 Industrial Products Group Outside 48.3 41.9 41.8 43.4 175.4 Intersegment 1.8 1.3 1.8 1.4 6.3 --------- --------- --------- --------- --------- Total 50.1 43.2 43.6 44.8 181.7 Railcar Leasing & Manage- ment Services Group 35.9 24.7 65.7 18.2 144.5 All Other Outside 2.8 11.5 9.8 12.4 36.5 Intersegment 14.1 14.2 9.1 6.7 44.1 --------- --------- --------- --------- --------- Total 16.9 25.7 18.9 19.1 80.6 Eliminations (48.8) (44.4) (58.3) (108.4) (259.9) --------- --------- --------- --------- --------- Consolidated Total $ 646.4 $ 533.7 $ 550.7 $ 401.2 $ 2,132.0 ========= ========= ========= ========= =========
OPERATING PROFIT (LOSS): Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 2000 2000 2000 2000 Dec. 31, 2000 --------- --------- --------- --------- -------------- Trinity Rail Group $ 37.9 $ 16.7 $ (16.9) $ 3.6 $ 41.3 Construction Products Group 10.2 16.3 11.8 (2.3) 36.0 Inland Barge Group 6.6 6.5 1.9 1.5 16.5 Industrial Products Group 2.3 1.9 1.9 2.7 8.8 Railcar Leasing & Manage- ment Services Group 13.8 9.3 16.9 8.0 48.0 All Other (3.0) (5.1) (10.3) (29.0) (47.4) Eliminations & Corporate Items (11.9) (8.1) (20.2) (15.0) (55.2) --------- --------- --------- --------- --------- Consolidated Total $ 55.9 $ 37.5 $ (14.9) $ (30.5) $ 48.0 ========= ========= ========= ========= =========
6 TRINITY INDUSTRIES, INC. Quarterly Segment Information Year Ended December 31, 1999 (in millions) (unaudited)
REVENUES: Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 1999 1999 1999 1999 Dec. 31, 1999 --------- --------- --------- --------- ------------- Trinity Rail Group Outside $ 513.3 $ 422.3 $ 419.0 $ 420.1 $ 1,774.7 Intersegment 29.8 17.7 7.3 10.7 65.5 --------- --------- --------- --------- --------- Total 543.1 440.0 426.3 430.8 1,840.2 Construction Products Group Outside 126.9 149.6 158.2 139.1 573.8 Intersegment 4.1 2.6 2.8 2.4 11.9 --------- --------- --------- --------- --------- Total 131.0 152.2 161.0 141.5 585.7 Inland Barge Group 47.6 51.7 55.3 48.8 203.4 Industrial Products Group Outside 38.4 40.5 44.1 46.3 169.3 Intersegment 2.0 1.8 2.3 2.2 8.3 --------- --------- --------- --------- --------- Total 40.4 42.3 46.4 48.5 177.6 Railcar Leasing & Manage- ment Services Group 48.4 28.4 22.4 44.8 144.0 All Other Outside 0.5 0.9 1.0 1.7 4.1 Intersegment 12.6 12.7 13.7 13.9 52.9 --------- --------- --------- --------- --------- Total 13.1 13.6 14.7 15.6 57.0 Eliminations (48.5) (34.8) (26.1) (29.2) (138.6) --------- --------- --------- --------- --------- Consolidated Total $ 775.1 $ 693.4 $ 700.0 $ 700.8 $ 2,869.3 ========= ========= ========= ========= =========
OPERATING PROFIT (LOSS): Quarter Ended ------------------------------------------------ March 31, June 30, Sep. 30, Dec. 31, Year Ended 1999 1999 1999 1999 Dec. 31, 1999 --------- --------- --------- --------- ------------- Trinity Rail Group $ 57.6 $ 50.2 $ 47.3 $ 39.2 $ 194.3 Construction Products Group 8.0 17.0 21.1 13.8 59.9 Inland Barge Group 2.8 5.6 7.4 6.1 21.9 Industrial Products Group (0.6) 3.6 3.4 3.7 10.1 Railcar Leasing & Manage- ment Services Group 14.9 12.3 9.5 15.7 52.4 All Other 0.2 (1.5) (2.3) (1.4) (5.0) Eliminations & Corporate Items (16.5) (9.8) (9.5) (8.3) (44.1) --------- --------- --------- --------- --------- Consolidated Total $ 66.4 $ 77.4 $ 76.9 $ 68.8 $ 289.5 ========= ========= ========= ========= =========
7 Trinity Industries, Inc. Supplemental Management's Discussion and Analysis of Operating Results Three Months Ended December 31, 2001 Compared to Three Months Ended December 31, 2000 Revenues for the three months ended December 31, 2001 increased to $507.3 million from $401.2 million for the three months ended December 31, 2000 primarily due to the merger of Thrall Car Manufacturing Company ("Thrall") on October 26, 2001, increased sales of railcars from the lease fleet, and higher Construction Products revenues due to more favorable weather conditions. Operating loss was $57.8 million in the 2001 period, which included $64.3 million of unusual charges, compared to an operating loss of $30.5 million in the 2000 period, which included $36.2 million of unusual charges. TRINITY RAIL GROUP
Three Months Ended December 31, --------------------- 2001 2000 -------- -------- (in millions) Revenues ................................................. $ 281.5 $ 261.5 Operating profit (loss) including unusual charges ................................................ $ (66.2) $ 3.6 Operating profit (loss) before unusual charges ........... $ (15.9) $ 9.5 Operating profit (loss) margin before unusual charges ................................................ (5.6)% 3.6%
Overall revenues for the Trinity Rail group increased due primarily to the contribution of the Thrall operations. Operating loss was $66.2 million ($15.9 million loss excluding unusual charges) in the quarter ended December 31, 2001. This compares to operating profit of $3.6 million ($9.5 million profit excluding unusual charges) in the same quarter of the prior year. Results declined due to the current downturn in the North American railcar industry and integration expenses recorded in the current quarter related to the Thrall merger. Comparison to the prior year for Trinity Rail group revenues and operating profit was affected by the level of railcars delivered to customers of Trinity's leasing company. Approximately 15% of railcar deliveries for the current quarter were to the Company's leasing fleet. This compares to sales to the leasing fleet for the year ago quarter of approximately 37%. Sales to Trinity's leasing subsidiary and related profits are eliminated in consolidation. For the current quarter, revenues from the sale of railcars to the leasing subsidiary were $42.6 million while profit was $1.7 million. This compares with revenues and profit from the sale of railcars to the lease fleet of $95.7 million and $6.4 million, respectively, for the same quarter a year ago. 8 CONSTRUCTION PRODUCTS GROUP
Three Months Ended December 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 128.2 $ 124.9 Operating profit (loss) including unusual charges .............................................. $ 11.0 $ (2.3) Operating profit before unusual charges ................ $ 11.9 $ 4.9 Operating profit margin before unusual charges ......... 9.3% 3.9%
Revenues and operating profit increased in the current quarter in the Construction Products group due primarily to improved weather conditions. INLAND BARGE GROUP
Three Months Ended December 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 48.0 $ 41.1 Operating profit including unusual charges ............. $ 4.8 $ 1.5 Operating profit before unusual charges ................ $ 4.8 $ 2.2 Operating profit margin before unusual charges ......... 10.0% 5.4%
In the Inland Barge group, operating profit was $4.8 million compared to $1.5 million for the same period last year. Prior year's results included $0.7 million of unusual charges. The increase in operating profit was attributable to increased deliveries of the more profitable tank barges partially offset by lower volumes in hopper barge sales. Operating profit margins, which were up in the current quarter due to special work, will return to more normal levels in future periods. INDUSTRIAL PRODUCTS GROUP
Three Months Ended December 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 37.7 $ 44.8 Operating profit including unusual charges ............. $ 1.9 $ 2.7 Operating profit before unusual charges ................ $ 1.9 $ 3.4 Operating profit margin before unusual charges ......... 5.0% 7.6%
In the Industrial Products group, revenues and operating profit were $37.7 million and $1.9 million, respectively in the current period compared to revenues and operating profit of $44.8 million and $2.7 million ($3.4 million profit excluding unusual charges), respectively for the same period 9 last year. Reduced revenues and operating profit in the Industrial Products group was primarily a result of reduced demand from gas distributors and pricing pressures in the Mexico liquefied petroleum gas market. RAILCAR LEASING AND MANAGEMENT SERVICES GROUP
Three Months Ended December 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 42.9 $ 18.2 Operating profit ....................................... $ 11.0 $ 8.0 Operating profit margin ................................ 25.6% 44.0%
Revenues in the Railcar Leasing & Management Services group increased to $42.9 million for the three months ended December 31, 2001 compared to $18.2 million for the three months ended December 31, 2000. The increase was due primarily to the sale of cars from the lease fleet in the current quarter ($14.7 million) and increased leasing revenues. Operating profit increased to $11.0 million from $8.0 million. Sale of cars from the lease fleet accounted for $1.4 million of the increase and the remainder was due primarily to increased profit from leasing activities. ALL OTHER Revenues in All Other increased in the current quarter compared to the same quarter a year ago due primarily to increased windtower revenues. Current period operating loss of $15.9 million included $13.1 million of unusual charges primarily related to exiting our internet related business and to our windtower business, which has been affected by the Enron bankruptcy. Prior quarter operating loss of $29.0 million included $20.9 million of unusual charges primarily related to exiting the concrete mixer and related business and environmental liabilities. Three Months Ended September 30, 2001 Compared to Three Months Ended September 30, 2000 Revenues for the three months ended September 30, 2001 declined to $372.9 million from $550.7 million for the three months ended September 30, 2000 primarily due to reduced railcar shipments and related declines in railcar component parts sales. Operating profit was $18.8 million compared to an operating loss of $14.9 million. The prior quarter operating loss included $48.9 million of unusual charges related primarily to restructuring the railcar operations, exiting the flange and valve businesses, writing down certain inventory, curtailing international barge operations, disposing of excess assets, and cutting back corporate employees. 10 TRINITY RAIL GROUP
Three Months Ended September 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 144.3 $ 270.0 Operating profit (loss) including unusual charges .............................................. $ (3.6) $ (16.9) Operating profit (loss) before unusual charges ......... $ (3.6) $ 10.4 Operating profit (loss) margin before unusual charges .............................................. (2.5)% 3.9%
Revenues for the Trinity Rail group declined from $270.0 million for the quarter ended September 30, 2000 to $144.3 million in the quarter ended September 30, 2001 due to the current downturn in the railcar industry which resulted in a 54% reduction in shipments of new cars over the same period last year and reduced sales prices. Operating loss of $3.6 million was recorded in the current quarter compared to a loss of $16.9 million in the same quarter of a year ago. The year ago loss included unusual charges of $27.3 million related to restructuring the railcar operations. In the current quarter, revenues from the sale of railcars to the leasing company were $46.6 million while profit was $2.3 million. This compares with revenues and profit on railcars sold to the lease fleet of $42.4 million and $3.7 million, respectively, for the same quarter a year ago. Sales to Trinity's leasing company and related profits are eliminated in consolidation. CONSTRUCTION PRODUCTS GROUP
Three Months Ended September 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 146.2 $ 159.1 Operating profit including unusual charges ............. $ 17.8 $ 11.8 Operating profit before unusual charges ................ $ 17.8 $ 18.3 Operating profit margin before unusual charges ......... 12.2% 11.5%
Revenues for the Construction Products group decreased in the current quarter to $146.2 million from $159.1 million in the same quarter a year ago. The decrease was mainly due to reduced Highway Safety products revenues and to exiting the flange and valve businesses. Operating profit increased in the current quarter due primarily to the impact of $6.5 million of unusual charges related to exiting the flange and valve businesses in the year ago quarter. 11 INLAND BARGE GROUP
Three Months Ended September 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 50.6 $ 51.7 Operating profit including unusual charges ............. $ 2.1 $ 1.9 Operating profit before unusual charges ................ $ 2.1 $ 5.6 Operating profit margin before unusual charges ......... 4.2% 10.8%
In the Inland Barge group, operating profit was $2.1 million compared to $1.9 million for the same period last year. Last year's operating profit included unusual charges of $3.7 million to curtail international barge operations. Excluding the unusual charge, the decline in operating profit was predominately the result of reduced sales prices, primarily on hopper barges, due to very competitive markets. INDUSTRIAL PRODUCTS GROUP
Three Months Ended September 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 39.6 $ 43.6 Operating profit ....................................... $ 2.4 $ 1.9 Operating profit margin ................................ 6.1% 4.4%
In the Industrial Products group, operating profit was $2.4 million compared to $1.9 million for the same period last year. Increased operating profit from domestic sales of liquefied petroleum gas containers was partially offset by reduced demand from gas distributors and pricing pressures in the Mexico liquefied petroleum gas market. RAILCAR LEASING AND MANAGEMENT SERVICES GROUP
Three Months Ended September 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 24.6 $ 65.7 Operating profit ....................................... $ 9.1 $ 16.9 Operating profit margin ................................ 37.0% 25.7%
Revenues in the Railcar Leasing & Management Services group for the current quarter were $24.6 million compared to $65.7 12 million for the same quarter of the prior year. The prior year period included sales from the lease fleet of $47.4 million compared to $0.4 million in the current period. Operating profit on the sale of cars was $8.6 million in the prior quarter compared to $0.1 million in the current quarter. Accordingly, operating profit was higher in the prior period from the increased sale of cars from the lease fleet. ALL OTHER Revenues in All Other increased in the current quarter compared to the same quarter a year ago due primarily to increased windtower revenues. This increase was partially offset by the reduction in revenues as a result of exiting the concrete mixer and related business. Operating loss in the current period of $2.0 million compares with operating loss of $10.3 million in the previous year's period. The prior year period included the operating losses associated with the concrete mixer and related business. Three Months Ended June 30, 2001 Compared to Three Months Ended June 30, 2000 Revenues for the three months ended June 30, 2001 decreased to $467.6 million from $533.7 million primarily due to reduced car shipments in the Trinity Rail group and lower revenues in the Industrial Products group. Operating profit decreased to $22.6 million compared to $37.5 million. TRINITY RAIL GROUP
Three Months Ended June 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 238.3 $ 274.8 Operating profit ....................................... $ 4.0 $ 16.7 Operating profit margin ................................ 1.7% 6.1%
Revenues for the Trinity Rail group decreased to $238.3 million from $274.8 million while operating profit decreased to $4.0 million from $16.7 million. The decline in revenues and operating profit was a result of the significant weakening in demand for new railcars in North America. This creates a very competitive market. Trinity Rail group operating margins declined due to average sales price declines and inefficiencies associated with changeover of production lines to different car types and start up of new products. For the current quarter, revenues from the sale of railcars to the leasing company were $48.1 million while profit was $2.6 million. This compares with revenues and profit on railcars sold to the lease fleet of $24.4 million and $2.0 million, respectively, for the same quarter a year ago. 13 CONSTRUCTION PRODUCTS GROUP
Three Months Ended June 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 157.8 $ 158.0 Operating profit ....................................... $ 16.8 $ 16.3 Operating profit margin ................................ 10.6% 10.3%
Revenues for the Construction Products group remained stable at $157.8 million for the current period, while operating profit increased slightly to $16.8 million. Operating profit increases in the Concrete & Aggregate portion of this segment were offset by losses in the Bridge business related to flooding in the Houston plant. INLAND BARGE GROUP
Three Months Ended June 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 49.6 $ 51.7 Operating profit ....................................... $ 2.9 $ 6.5 Operating profit margin ................................ 5.8% 12.6%
Revenues for the Inland Barge group were $49.6 million for the current quarter and $51.7 million for the prior year quarter. Operating profit decreased to $2.9 million from $6.5 million. Decreased operating profit was due mainly to competitive price pressures for both hopper barges and tank barges. INDUSTRIAL PRODUCTS GROUP
Three Months Ended June 30, --------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 31.7 $ 43.2 Operating profit (loss) ............................... $ (0.4) $ 1.9 Operating profit (loss) margin ......................... (1.3)% 4.4%
Industrial Products group revenues decreased to $31.7 million compared to $43.2 million, while operating profit decreased to a loss of $0.4 million from profit of $1.9 million. The reduction of revenues and operating profit was primarily a 14 result of reduced demand from gas distributors and pricing pressures in the Mexico market. RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended June 30, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 26.5 $ 24.7 Operating profit ....................................... $ 10.1 $ 9.3 Operating profit margin ................................ 38.1% 37.7%
Railcar Leasing & Management Services group revenues and operating profit increased in the current quarter due primarily to increased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $5.7 million compared to $0.6 million in the prior quarter. Operating profit on lease fleet sales were $1.1 million in the current quarter compared to $0.1 million in the prior quarter. ALL OTHER Operating loss in All Other decreased in the current quarter compared to the same quarter a year ago due primarily to increased windtower profits. This increase was partially offset by operating losses recorded by the concrete mixer and related business. Three Months Ended March 31, 2001 Compared to Three Months Ended March 31, 2000 Revenues for the three months ended March 31, 2001 decreased to $418.7 million from $646.4 million primarily due to reduced car shipments in the Trinity Rail group, lower revenues in the Industrial Products group, and fewer railcars sold from the lease fleet. Operating profit decreased to a loss of $58.2 million compared to profit of $55.9 million. The current period loss included unusual charges of $55.8 million related primarily to restructuring the railcar operations and related plant closings and litigation reserves. 15 TRINITY RAIL GROUP
Three Months Ended March 31, --------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 293.4 $ 401.2 Operating profit (loss) including unusual charges .............................................. $ (38.6) $ 37.9 Operating profit before unusual charges ................ $ 8.6 $ 37.9 Operating profit margin before unusual charges .............................................. 2.9% 9.4%
Revenues for the Trinity Rail group decreased to $293.4 million from $401.2 million while operating profit decreased to a loss of $38.6 million from profit of $37.9 million. The current year loss included unusual charges of $47.2 million. The decline in revenues and operating profit before unusual charges was a result of the significant weakening in demand for new railcars in North America. Operating margins declined due primarily to unabsorbed overhead from lower volumes. For the current quarter, revenues from the sale of railcars to the leasing company were $113.0 million while profit was $5.8 million. This compares with revenues and profit on railcars sold to the lease fleet of $29.7 million and $2.2 million, respectively, for the same quarter a year ago. CONSTRUCTION PRODUCTS GROUP
Three Months Ended March 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 118.1 $ 136.8 Operating profit ....................................... $ 3.3 $ 10.2 Operating profit margin ................................ 2.8% 7.5%
Revenues for the Construction Products group decreased to $118.1 million for the current period, while operating profit decreased to $3.3 million. This decrease in operating results was due mainly to poor weather conditions during the current quarter that depressed operations for both highway safety and concrete and aggregate products. 16 INLAND BARGE GROUP
Three Months Ended March 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 58.5 $ 54.3 Operating profit ....................................... $ 1.8 $ 6.6 Operating profit margin ................................ 3.1% 12.2%
Revenues for the Inland Barge group were $58.5 million for the current quarter and $54.3 million for the prior year quarter. Operating profit decreased to $1.8 million from $6.6 million. Decreased operating profit was due mainly to competitive price pressures for both hopper barges and tank barges. INDUSTRIAL PRODUCTS GROUP
Three Months Ended March 31, --------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 38.5 $ 50.1 Operating profit (loss) ............................... $ (1.1) $ 2.3 Operating profit (loss) margin ......................... (2.9)% 4.6%
Industrial Products group revenues decreased to $38.5 million compared to $50.1 million, while operating profit decreased to a loss of $1.1 million from profit of $2.3 million. The reduction of revenues and operating profit was primarily a result of competitive pressure in pricing for domestic liquefied petroleum gas containers and reduced demand from gas distributors in the Mexico market. RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended March 31, -------------------- 2001 2000 -------- -------- (in millions) Revenues ............................................... $ 20.1 $ 35.9 Operating profit ....................................... $ 7.8 $ 13.8 Operating profit margin ................................ 38.8% 38.4%
Railcar Leasing & Management Services group revenues and operating profit decreased in the current quarter due primarily to decreased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $1.7 million compared to $19.7 million in the prior quarter. Operating profit on lease fleet sales were $0.2 million in the current quarter compared to $5.5 million in the prior quarter. 17 ALL OTHER Operating loss in All Other increased in the current quarter to $14.7 million from $3.0 million for the same quarter of the previous year. The current year loss included unusual charges of $8.0 million related to exiting the concrete mixer and related business. Three Months Ended December 31, 2000 Compared to Three Months Ended December 31, 1999 Revenues for the three months ended December 31, 2000 were $401.2 million compared to $700.8 million for the same period of the prior year primarily due to reduced railcar shipments and related declines in railcar component parts sales and reduced revenues in the Construction Products group. Operating loss of $30.5 million in the current quarter compared to an operating profit of $68.8 million in the same quarter of the prior year. The current period operating loss included unusual charges of $36.2 million primarily related to exiting the concrete mixer and related business and flange and valve businesses and environmental liabilities associated with previously closed facilities. TRINITY RAIL GROUP
Three Months Ended December 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 261.5 $ 430.8 Operating profit including unusual charges ............. $ 3.6 $ 39.2 Operating profit before unusual charges ................ $ 9.5 $ 39.2 Operating profit margin before unusual charges .............................................. 3.6% 9.1%
Trinity Rail group operating profit was $3.6 million compared to $39.2 million for the same period last year. Current period results include unusual charges of $5.9 million primarily related to a railcar repair contract. Results declined due to the current downturn in the North American railcar industry. Operating profit margins were impacted by the lower volumes, changeover of the production lines to different car types, and start up costs associated with new products. Comparison to the prior year for Railcar segment revenues and operating profit were affected by the level of railcars delivered to customers of Trinity's leasing company. Approximately 42% of railcar deliveries for the current quarter were to the Company's leasing fleet. Sales to Trinity's leasing company and related profits are eliminated in consolidation. For the current quarter, revenues from the sale of railcars to the leasing 18 company were $95.7 million while profit was $6.4 million. This compares with revenues and profit on railcars sold to the lease fleet of $9.3 million and $1.0 million, respectively, for the same quarter a year ago. CONSTRUCTION PRODUCTS GROUP
Three Months Ended December 31, --------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 124.9 $ 141.5 Operating profit (loss) including unusual charges .............................................. $ (2.3) $ 13.8 Operating profit before unusual charges ................ $ 4.9 $ 13.8 Operating profit margin before unusual charges ......... 3.9% 9.8%
Current quarter revenues and operating profit margins in the Construction Products group were negatively affected by periods of harsh winter weather and competitive pricing in certain concrete and aggregate markets. Current period operating loss of $2.3 million included unusual charges of $7.2 million related to exiting the flange and valve businesses. Additionally, operating profit margins were also impacted by an increased proportion of revenues coming from bridge sales that have lower margins. INLAND BARGE GROUP
Three Months Ended December 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 41.1 $ 48.8 Operating profit including unusual charges ............. $ 1.5 $ 6.1 Operating profit before unusual charges ................ $ 2.2 $ 6.1 Operating profit margin before unusual charges ......... 5.4% 12.5%
In the Inland Barge group, operating profit was $1.5 million compared to $6.1 million for the same period last year. Current period operating profit included unusual charges of $0.7 million related to a bad debt write-off. The decline in operating results excluding the unusual charge were predominately the result of reduced sales prices, primarily on hopper barges, due to very competitive markets. 19 INDUSTRIAL PRODUCTS GROUP
Three Months Ended December 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 44.8 $ 48.5 Operating profit including unusual charges ............. $ 2.7 $ 3.7 Operating profit before unusual charges ................ $ 3.4 $ 3.7 Operating profit margin before unusual charges ......... 7.6% 7.6%
In the Industrial Products group, operating profit was $2.7 million on revenues of $44.8 million compared to operating profit of $3.7 million on revenues of $48.5 million for the same period last year. Current period operating profit included unusual charges of $0.7 million related to a closed facility. Decreases in revenues and operating profit in the Industrial group were primarily a result of competitive pricing pressure for liquefied petroleum gas containers. RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended December 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 18.2 $ 44.8 Operating profit ....................................... $ 8.0 $ 15.7 Operating profit margin ................................ 44.0% 35.0%
Railcar Leasing & Management Services group revenues and operating profit decreased in the current quarter due primarily to decreased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $0.3 million compared to $26.0 million in the prior quarter. Operating profit on lease fleet sales were $0.1 million in the current quarter compared to $6.7 million in the prior quarter. ALL OTHER Operating loss in All Other increased in the current quarter to $29.0 million compared to $1.4 million for the same quarter of the previous year. The current year loss included unusual charges of $20.9 million primarily related to exiting the concrete mixer and related business and recording certain environmental liabilities associated with previously closed facilities. The current period also included operating losses attributable to our e-commerce initiatives. 20 Three Months Ended September 30, 2000 Compared to Three Months Ended September 30, 1999 Revenues for the three months ended September 30, 2000 were $550.7 million compared to $700.0 million for the same period of the previous year primarily due to reduced railcar shipments and related declines in railcar component parts sales. Operating loss was $14.9 million compared to operating profit of $76.9 million. The current period operating loss included unusual charges of $48.9 million related primarily to restructuring the railcar operations, exiting the flange and valve businesses, writing down certain inventory, curtailing international barge operations, disposing of excess assets, and staff reduction of corporate employees TRINITY RAIL GROUP
Three Months Ended September 30, --------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 270.0 $ 426.3 Operating profit (loss) including unusual charges .............................................. $ (16.9) $ 47.3 Operating profit before unusual charges ................ $ 10.4 $ 47.3 Operating profit margin before unusual charges ......... 3.9% 11.1%
Trinity Rail group operating loss was $16.9 million compared to operating profit of $47.3 million for the same period last year. The current year operating loss included $27.3 million of unusual charges related to restructuring the railcar operations. Revenues and operating profit (excluding unusual charges) declined due to the current downturn in the railcar industry which resulted in reduced shipments of new cars by 37% over the same period last year and reduced sales prices. Operating profit margins were further impacted by changeover of production lines to different car types and start up costs associated with new products. For the current quarter, revenues from the sale of railcars to the leasing company were $42.4 million while profit was $3.7 million. This compares with sales and profit on railcars sold to the lease fleet of $5.1 million and $0.4 million, respectively, for the same quarter a year ago. 21 CONSTRUCTION PRODUCTS GROUP
Three Months Ended September 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 159.1 $ 161.0 Operating profit including unusual charges ............. $ 11.8 $ 21.1 Operating profit before unusual charges ................ $ 18.3 $ 21.1 Operating profit margin before unusual charges ......... 11.5% 13.1%
Revenues for the Construction Products group remained level compared to the prior year. A strong construction market for highway products was offset by a very competitive market for fittings products. Operating profit of $11.8 million for the current period included unusual charges in the amount of $6.5 million related to exiting the flange business. Excluding the unusual charges, operating profit declined somewhat due to competitive pricing in fittings products and certain concrete and aggregate markets, the impact of an increased proportion of revenues coming from bridge sales which have lower margins, and fewer work days which increased unabsorbed manufacturing burden costs. INLAND BARGE GROUP
Three Months Ended September 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 51.7 $ 55.3 Operating profit including unusual charges ............. $ 1.9 $ 7.4 Operating profit before unusual charges ................ $ 5.6 $ 7.4 Operating profit margin before unusual charges ......... 10.8% 13.4%
In the Inland Barge group, operating profit was $1.9 million compared to $7.4 million for the prior year period. Current period operating profit included unusual charges of $3.7 million related to curtailing international barge operations. Excluding the unusual charges, the decline in operating profit was predominately the result of reduced sales prices, primarily on hopper barges, due to very competitive markets. INDUSTRIAL PRODUCTS GROUP
Three Months Ended September 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 43.6 $ 46.4 Operating profit ....................................... $ 1.9 $ 3.4 Operating profit margin ................................ 4.4% 7.3%
22 In the Industrial Products segment, operating profit was $1.9 million compared to $3.4 million for the prior year period. Reduced revenues and operating profit in the Industrial Products group was primarily a result of competitive pricing pressures in the liquefied petroleum gas container business. RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended September 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 65.7 $ 22.4 Operating profit ....................................... $ 16.9 $ 9.5 Operating profit margin ................................ 25.7% 42.4%
Railcar Leasing & Management Services group revenues and operating profit increased in the current quarter due primarily to increased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $47.4 million compared to $3.4 million in the prior quarter. Operating profit on lease fleet sales were $8.6 million in the current quarter compared to $0.3 million in the prior quarter. ALL OTHER Operating loss in All Other increased in the current quarter to $10.3 million compared to $2.3 million for the same quarter of the prior year. Losses recorded in the current period were primarily attributable to a book-to-physical inventory adjustment at the concrete mixer and related business and operating losses attributable to our e-commerce initiatives. Three Months Ended June 30, 2000 Compared to Three Months Ended June 30, 1999 Revenues for the three months ended June 30, 2000 decreased to $533.7 million from $693.4 million primarily due to reduced car shipments and related downturn in railcar parts and components recorded in the Trinity Rail group. Operating profit decreased to $37.5 million compared to $77.4 million. 23 TRINITY RAIL GROUP
Three Months Ended June 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 274.8 $ 440.0 Operating profit ....................................... $ 16.7 $ 50.2 Operating profit margin ................................ 6.1% 11.4%
Revenues for the Trinity Rail group decreased to $274.8 million from $440.0 million while operating profit decreased to $16.7 million from $50.2 million. The decline in revenues and operating profit was a result of the significant weakening in demand for new railcars in North America. This created a very competitive market for new cars and related components and parts. Trinity Rail group operating margins declined due to average sales price declines and inefficiencies associated with changeover of production lines to different car types and start up of new products. For the current quarter, revenues from the sale of railcars to the leasing company were $24.4 million while profit was $2.0 million. This compares with revenues and profit on railcars sold to the lease fleet of $15.5 million and $2.9 million, respectively, for the same quarter a year ago. CONSTRUCTION PRODUCTS GROUP
Three Months Ended June 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 158.0 $ 152.2 Operating profit ....................................... $ 16.3 $ 17.0 Operating profit margin ................................ 10.3% 11.2%
Revenues for the Construction Products segment increased slightly to $158.0 million from $152.2 million, while operating profit decreased slightly to $16.3 million. Revenues increased due to a strong highway products market, particularly the demand for guardrail. Increased operating profit for highway products was offset by decreased operating profit from concrete and aggregates. Decreased concrete and aggregate results were primarily attributable to an unusually rainy season over the past three months in principal Texas markets and competitive pricing in certain markets. 24 INLAND BARGE GROUP
Three Months Ended June 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 51.7 $ 51.7 Operating profit ....................................... $ 6.5 $ 5.6 Operating profit margin ................................ 12.6% 10.8%
Revenues for the Inland Barge group were $51.7 million for the current quarter and $51.7 million for the prior year quarter. Operating profit increased to $6.5 million from $5.6 million, a 16.1% increase. Increased operating profit was due mainly to cost reductions and operating efficiencies. INDUSTRIAL PRODUCTS GROUP
Three Months Ended June 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 43.2 $ 42.3 Operating profit ....................................... $ 1.9 $ 3.6 Operating profit margin ................................ 4.4% 8.5%
Industrial Products group revenues increased slightly to $43.2 million compared to $42.3 million, while operating profit decreased to $1.9 million from $3.6 million. The reduction of revenues and operating profit was primarily a result of competitive pressure in pricing. RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended June 30, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 24.7 $ 28.4 Operating profit ....................................... $ 9.3 $ 12.3 Operating profit margin ................................ 37.7% 43.3%
Railcar Leasing & Management Services group revenues and operating profit decreased in the current quarter due primarily to decreased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $0.6 million compared to $8.9 million in the prior quarter. Operating profit on lease fleet sales were $0.1 million in the current quarter compared to $2.2 million in the prior quarter. 25 ALL OTHER Operating loss in All Other increased in the current quarter to $5.1 million compared to $1.5 million for the same quarter of the previous year. The increased loss was primarily attributable to operating losses in our e-commerce initiatives. Three Months Ended March 31, 2000 Compared to Three Months Ended March 31, 1999 Revenues for the three months ended March 31, 2000 decreased to $646.4 million from $775.1 million due to reduced car shipments in the Trinity Rail group, along with a decline in revenues in the related railcar parts and components businesses. These decreases were partially offset by improved results in the Construction Products group, Inland Barge group, and Industrial Products group. Operating profit decreased to $55.9 million compared to $66.4 million. Decrease operating profit in the Trinity Rail group was partially offset by increased operating profits in the Construction Products, Inland Barge, and Industrial Products groups. TRINITY RAIL GROUP
Three Months Ended March 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 401.2 $ 543.1 Operating profit ....................................... $ 37.9 $ 57.6 Operating profit margin ................................ 9.4% 10.6%
Revenues for the Trinity Rail group decreased to $401.2 million from $543.1 million while operating profit decreased to $37.9 million from $57.6 million. Lower revenues and operating profit were a result of softened demand in this business. For the current quarter, revenues from the sale of railcars to the leasing company were $29.7 million while profit was $2.2 million. This compares with revenues and profit on railcars sold to the lease fleet of $27.4 million and $3.5 million, respectively, for the same quarter a year ago. 26 CONSTRUCTION PRODUCTS GROUP
Three Months Ended March 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 136.8 $ 131.0 Operating profit ....................................... $ 10.2 $ 8.0 Operating profit margin ................................ 7.5% 6.1%
Revenues for the Construction Products group increased to $136.8 million from $131.0 million, while operating profit increased to $10.2 million from $8.0 million due to increased government spending on transportation improvements. INLAND BARGE GROUP
Three Months Ended March 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 54.3 $ 47.6 Operating profit ....................................... $ 6.6 $ 2.8 Operating profit margin ................................ 12.2% 5.9%
Revenues for the Inland Barge group increased to $54.3 million from $47.6 million. Operating profit increased to $6.6 million from $2.8 million. The improvement in operating profit was due mainly to a change in product mix, increased operating efficiency, and lower material costs. INDUSTRIAL PRODUCTS GROUP
Three Months Ended March 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 50.1 $ 40.4 Operating profit (loss) ............................... $ 2.3 $ (0.6) Operating profit (loss) margin ......................... 4.6% (1.5)%
Industrial Products group revenues increased to $50.1 million from $40.4 million while operating profit increased to $2.3 million from a loss of $0.6 million. The increase in revenues and operating profit was primarily due to increased LPG tank demand. 27 RAILCAR LEASING & MANAGEMENT SERVICES GROUP
Three Months Ended March 31, -------------------- 2000 1999 -------- -------- (in millions) Revenues ............................................... $ 35.9 $ 48.4 Operating profit ....................................... $ 13.8 $ 14.9 Operating profit margin ................................ 38.4% 30.8%
Railcar Leasing & Management Services group revenues and operating profit decreased in the current quarter due primarily to decreased sales of railcars from the lease fleet. Lease fleet sales in the current quarter were $19.7 million compared to $29.2 million in the prior quarter. Operating profit on lease fleet sales were $5.5 million in the current quarter compared to $4.8 million in the prior quarter. ALL OTHER Operating loss in All Other for the current quarter was $3.0 million compared to operating profit of $0.2 million for the same quarter of the previous year. The increased loss was primarily attributable to operating losses in our e-commerce initiatives. 28 -----END PRIVACY-ENHANCED MESSAGE-----