Trinity Industries, Inc. (Form: 8-K)

Investor Contact:
James Perry, Vice President and Treasurer
Trinity Industries, Inc.
214/589-8412

Trinity Industries, Inc. Reports Strong Fourth Quarter Results and Record Annual Revenues
and Net Income

DALLAS – February 21, 2007 – Trinity Industries, Inc. (NYSE:TRN) today reported earnings from continuing operations of $57.8 million, or $0.73 per common diluted share for the fourth quarter ended December 31, 2006. Earnings from continuing operations for the same quarter of 2005 were $40.2 million, or $0.52 per common diluted share. Revenues for the fourth quarter of 2006 increased 15 percent to $835.0 million compared to revenues of $727.0 million for the same period in 2005.

Net income for the fourth quarter of 2006 was $56.5 million, or $0.71 per common diluted share compared with net income of $25.4 million or $0.33 per common diluted share for the same quarter of 2005. Included in the earnings per share for the fourth quarter of 2006 was a favorable $0.05 per common diluted share due to lower than anticipated state taxes.

For the year ended December 31, 2006, the Company reported earnings from continuing operations of $215.5 million, or $2.72 per common diluted share, compared with earnings from continuing operations of $110.5 million or $1.44 per common diluted share for 2005. For the year ended December 31, 2006, the Company reported net income of $230.1 million, or $2.90 per common diluted share, compared with net income of $86.3 million or $1.13 per common diluted share for 2005. Revenues for the year ended December 31, 2006 increased 19 percent to $3,218.9 million compared to revenues of $2,709.7 million for 2005.

“The fourth quarter capped a strong year of revenue and earnings growth for Trinity,” said Timothy R. Wallace, Trinity’s Chairman, President, and CEO. “All of our businesses achieved higher revenues. We continue to grow a diversified portfolio of businesses and are achieving operational efficiencies in several of our businesses. Our markets remain healthy and we have positioned our businesses to take advantage of the opportunities in those markets.”

Trinity received orders for 10,093 railcars during the fourth quarter and shipped 6,300 railcars. Trinity’s North American railcar order backlog rose to approximately 35,930 at December 31, the highest level in the Company’s history. This represents an increase of more than 3,700 railcars from the September 30, 2006 order backlog and an increase of more than 17,100 railcars from the December 31, 2005 railcar order backlog.

The Company continues to grow its railcar leasing business. Trinity increased its lease fleet during the fourth quarter bringing the fleet total to approximately 30,550 at December 31, 2006. This compares to approximately 24,900 at December 31, 2005 and approximately 20,300 at December 31, 2004. “We continue to invest in our railcar lease fleet which provides multiple benefits to the Company,” Wallace said.

“The Inland Barge Group’s backlog grew to approximately $464 million at December 31, 2006, enabling long-term production planning and operational efficiencies,” Wallace concluded.

Trinity Industries, Inc., with headquarters in Dallas, Texas, is a holding company of diversified industrial companies with market-leading positions. Trinity reports 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. Trinity’s web site may be accessed at 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.

Trinity Industries, Inc.
Condensed Consolidated Income Statement
(in millions, except per share amounts)


	Three Months Ended December 31,
	2006			2005
Revenues	$	835.0		$	727.0
Operating profit	$	98.0		$	70.4
Other expense		10.4			10.2

Income from continuing operations before income taxes		87.6			60.2
Provision for income taxes		29.8			20.0

Income from continuing operations		57.8			40.2
Discontinued operations:
Loss on sale of discontinued operations, net of benefit for income taxes of $1.1		(0.6	)		—
Loss from discontinued operations, net of benefit for income taxes of $(0.8) and $(3.8)		(0.7	)		(14.8	)

Net income		56.5			25.4
Dividends on Series B preferred stock		—			(0.8	)

Net income applicable to common shareholders	$	56.5		$	24.6

Net income (loss) applicable to common shareholders per common share (1):
Basic:
Continuing operations	$	0.74		$	0.55
Discontinued operations		(0.02	)		(0.21	)

	$	0.72		$	0.34

Diluted:
Continuing operations	$	0.73		$	0.52
Discontinued operations		(0.02	)		(0.19	)

	$	0.71		$	0.33

Weighted average number of shares outstanding:
Basic		77.8			72.0
Diluted		79.5			77.9

(1) Earnings per share information has been adjusted to reflect the 3-for-2 stock split.
Trinity Industries, Inc.
Condensed Consolidated Income Statement
(in millions, except per share amounts)


	Year Ended December 31,
	2006			2005
Revenues	$	3,218.9		$	2,709.7
Operating profit	$	382.6		$	204.1
Other expense		34.1			28.0

Income from continuing operations before income taxes		348.5			176.1
Provision for income taxes		133.0			65.6

Income from continuing operations		215.5			110.5
Discontinued operations:
Gain on sale of discontinued operations, net of provision for income taxes of $12.2		20.4			—
Loss from discontinued operations, net of benefit for income taxes of $(1.7) and $(8.3)		(5.8	)		(24.2	)

Net income		230.1			86.3
Dividends on Series B preferred stock		—			(3.2	)

Net income applicable to common shareholders	$	230.1		$	83.1

Net income (loss) applicable to common shareholders per common share(1):
Basic:
Continuing operations	$	2.80		$	1.51
Discontinued operations		0.19			(0.34	)

	$	2.99		$	1.17

Diluted:
Continuing operations	$	2.72		$	1.44
Discontinued operations		0.18			(0.31	)

	$	2.90		$	1.13

Weighted average number of shares outstanding:
Basic		76.9			71.0
Diluted		79.3			76.7

(1)

Earnings per share information has been adjusted to reflect the 3-for-2 stock split.


	Three Months Ended
	December 31,
Revenues:	2006			2005
Rail Group	$	537.4		$	491.6
Construction Products Group		167.1			155.9
Inland Barge Group		105.5			81.7
Energy Equipment Group		97.1			74.9
Railcar Leasing and Management Services Group		114.2			58.6
All Other		15.7			12.0
Eliminations		(202.0	)		(147.7	)

Total Consolidated	$	835.0		$	727.0


	Three Months Ended
	December 31,
Operating profit (loss):	2006			2005
Rail Group	$	66.8		$	53.7
Construction Products Group		12.0			10.9
Inland Barge Group		15.5			9.0
Energy Equipment Group		9.2			10.5
Railcar Leasing and Management Services Group		40.2			16.3
All Other		(1.5	)		0.1
Corporate		(11.1	)		(9.6	)
Eliminations		(33.1	)		(20.5	)

Total Consolidated	$	98.0		$	70.4


	Year Ended December 31,
Revenues:	2006			2005
Rail Group	$	2,142.6		$	1,816.3
Construction Products Group		695.3			621.6
Inland Barge Group		371.2			240.7
Energy Equipment Group		336.5			234.8
Railcar Leasing and Management Services Group		303.7			203.7
All Other		55.2			43.8
Eliminations		(685.6	)		(451.2	)

Total Consolidated	$	3,218.9		$	2,709.7


	Year Ended December 31,
Operating profit (loss):	2006			2005
Rail Group	$	253.9		$	135.0
Construction Products Group		61.5			55.3
Inland Barge Group		44.5			15.7
Energy Equipment Group		45.7			31.9
Railcar Leasing and Management Services Group		106.5			55.8
All Other		(8.8	)		(4.2	)
Corporate		(37.9	)		(35.0	)
Eliminations		(82.8	)		(50.4	)

Total Consolidated	$	382.6		$	204.1

Trinity Industries, Inc.
Condensed Consolidated Balance Sheet
(in millions)


	December 31,			December 31,
	2006			2005
Cash and equivalents	$	311.5		$	136.0
Accounts receivable		252.5			218.7
Inventories		528.9			408.5
Net property, plant, and equipment, at cost (1)		1,590.3			1,079.2
Other assets		742.4			744.1

	$	3,425.6		$	2,586.5

Accounts payable and accrued liabilities	$	655.8		$	595.8
Debt (2)		1,198.9			689.0
Deferred income		42.9			45.2
Other liabilities		124.5			83.4
Series B preferred stock		—			58.7
Stockholders’ equity		1,403.5			1,114.4

	$	3,425.6		$	2,586.5

(1) Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment	$	943.1		$	861.7
Accumulated depreciation		(564.6	)		(549.6	)

		378.5			312.1

Leasing:
Equipment on lease		1,511.4			964.9
Machinery		35.2			33.4
Accumulated depreciation		(163.9	)		(145.9	)

		1,382.7			852.4

Deferred profit on railcars sold to the Leasing Group		(170.9	)		(85.3	)

	$	1,590.3		$	1,079.2

(2) Debt
Corporate/Manufacturing — Recourse
Revolving commitment	$	—		$	—
Convertible subordinated notes		450.0			—
Senior notes		201.5			300.0
Other		1.8			2.6

		653.3			302.6

Leasing – Recourse
Equipment trust certificates		119.1			130.1

Total recourse		772.4			432.7

Leasing – Non-recourse
Secured railcar equipment note		347.5			—
Warehouse facility		79.0			256.3

		426.5			256.3

	$	1,198.9		$	689.0

“EBITDA” is defined as net income (loss) plus income taxes, interest expense, and depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the EBITDA calculations, 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.


	Three Months Ended December 31,
	2006		2005
Income from continuing operations	$	57.8	$	40.2
Add:
Provision for income taxes		29.8		20.0
Depreciation and amortization expense		24.3		19.4
Interest expense		17.6		10.3

Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization	$	129.5	$	89.9


	Year Ended December 31,
	2006		2005
Income from continuing operations	$	215.5	$	110.5
Add:
Provision for income taxes		133.0		65.6
Depreciation and amortization expense		87.6		76.2
Interest expense		64.1		42.2

Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization	$	500.2	$	294.5

Fourth Quarter 2006 Results Conference Call
James E. Perry, Vice President and Treasurer
February 22, 2007

Good morning from Dallas, Texas and welcome to the Trinity Industries’ Fourth Quarter 2006 Results Conference Call. I’m James Perry, Vice President and Treasurer for Trinity. Thank you for being with us today.

•

Steve Menzies, Senior Vice President and Group President of the Rail Group; and

Following that, we’ll move to the Q&A session.
A replay of this conference call will be available starting one hour after the conference call ends today through midnight on Thursday, March 1st. The replay number is (402) 220-0428.

I would also like to welcome to our call our audio web cast listeners today. Replay of this broadcast will also be available on our website located at www.t-r-i-n.net.

Before we get started, let me remind you that:
“Today’s conference call contains forward looking statements as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to estimates, expectations, intentions and predictions of future financial performance. Statements that are not historical facts are forward looking. Participants are directed to Trinity’s Form 10-K and other SEC filings for a description of certain of the business issues and risks, a change in any of which could cause actual results or outcomes to differ materially from those expressed in the forward looking statements.”

At December 31st, 2006 our borrowings at the corporate level were the 450 million dollars of convertible subordinated notes, 201.5 million dollars of senior notes and 1.8 million dollars of other indebtedness. The Leasing Company’s debt included 347.5 million dollars of Secured Railcar Equipment Notes, 119.1 million dollars of Equipment Trust Certificates and 79.0 million dollars outstanding under our railcar leasing warehouse facility.

Our total debt to total capital ratio was 46 percent at December 31st, 2006, up from the comparable amount of 37 percent at December 31st, 2005, principally due to financing for current and future lease fleet expansion. Net of cash, our net debt to total capital ratio was 39 percent at December 31, 2006, up from the comparable amount of 32 percent at December 31st, 2005. At December 31, 2006, our cash position was 311.5 million dollars.

Now, here’s Tim Wallace.
Tim
Steve
Bill
Thanks, Bill. Now our operator will prepare us for the Q & A session.

Remember, a replay of this call will be available starting one hour after this call ends today through midnight, Thursday, March 1st. The access number is (402) 220-0428. Also, this replay will be available on our website located at
www.t-r-i-n.net.
We look forward to visiting with you again on our next conference call. Thank you for joining us this morning.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Tim Wallace, Chairman, President and CEO

I am very pleased with our progress. 2006 was another growth year for Trinity. Our revenues increased 19% to an all time high of $3.2 billion dollars. Our net income was a record $230 million. The majority of our revenue increase was derived from internal expansion initiatives.

All of our business segments continued to perform well. We are positioned to continue to benefit from several key market trends. Our focus on operational excellence and other initiatives designed to extend our backlogs are continuing to pay off.

Fortunately, each quarter continues to build on the momentum from the previous quarter. We expect 2007 to be another growth year. We are fortunate to have a very experienced, seasoned group of employees. Our people have become very experienced at converting our production lines to accommodate changing market trends. During 2006, we were able to shift production throughout our company to areas with the greatest opportunities for growth and returns. We will continue to do so during 2007.

In our North American railcar business, our 2006 annual shipments increased 10% to approximately 25,240 units. Our target goal is to increase railcar shipments between 10% and 15% in 2007. During 2006, we increased our margins, launched new production lines in Mexico and enhanced our production flexibility. Our short term objectives for our North American rail business are to: complete our current round of line conversions, enhance our profitability through productivity initiatives and pursue orders that extend our production lines. Steve Menzies will provide more details.

Our 4^th quarter railcar shipments totaled 6,300 units. This was right in line with our expectations. Our 4^th quarter railcar orders increased our backlog to an all time record of approximately 35,930 units. This is in part due to an increase in demand for railcars servicing the renewable fuels market. Our production flexibility allowed us to pursue a large number of orders for railcars that transport renewable fuel products.

Demand for railcar products in North America continuously shifts between various railcar types. Fortunately, the depth of our product line and our production flexibility allow us to pursue orders for railcar types currently in demand.

Trinity’s barge business continues to perform well. We have a very good backlog of orders and our customers are continuing to visit with us about opportunities for future business. Our barge backlog extends into 2008. During 2006, we improved our barge profitability as we simultaneously expanded our barge production. We are continuing to search for a variety of ways to increase our barge production capacity and enhance our flexibility. We expect 2007 to be another growth year for barge revenues and profitability. Bill will provide more details during his update.

Our Construction Products businesses are continuing to perform well. Weather conditions in the southwestern part of the United States were construction friendly during the 4^th quarter, but turned sour during the early part of this year. Texas weather in particular has been unusually cold and wet during the early weeks of the first quarter of 2007. We are no stranger to bad weather and will be aggressive in our actions to recover once the weather improves. Fortunately, demand for our construction products remains steady. We are continuing to enhance the overall value of our concrete and aggregates businesses by acquiring small, concrete and aggregate operations. Our highway products business is expecting steady demand during the construction season.

Our structural wind towers business is continuing to grow. The demand for wind towers is steady. We are in the process of expanding our capacity by converting an idle railcar plant located in southern Illinois to produce wind tower structures. We will use this facility to serve the mid-west market. We are also looking at a variety of other options to increase our production capacity in this business.

Trinity’s leasing company continues to grow while performing a vital strategic role in our business. We are positioned very well to be able to provide a large number of new railcars in a strong lease market. Steve Menzies will provide more details about this in his report.

In summary, I am pleased with our 4^th quarter results and I remain very optimistic about the opportunities for our businesses. We continue to have positive momentum moving throughout our company. At this time I’ll turn it over to Steve for his comments.

Trinity Industries, Inc
Analysts Conference Call
February 22, 2007
Comments by Steve Menzies

Thank you, Tim. Good morning!
Industry demand for railcars in North America remained strong during the 4^th quarter of 2006 with orders placed for more than 17,100 railcars. This is a continuation of the strong pace which began in early 2004 and has continued throughout 2005 and 2006. Total orders for 2006 exceeded 93,800, a significant increase over the 81,000 railcars ordered in 2005. These strong order levels continue to support our view that we are experiencing a market plateau at historically high industry demand levels. We expect railcar demand to remain healthy in most key market segments in which we compete.

As we have mentioned previously, railcar demand will shift periodically from car type to car type. The North American railcar market is currently driven by demand for tank cars and covered hoppers serving the renewable fuels and agricultural industries. We also see consistent demand for railcars carrying cement and aggregates used in infrastructure projects and commercial construction. Recent order inquiries support continued demand for tank cars, covered hoppers and autoracks. Coal car demand has subsided pending completion of rail capacity expansion projects designed to improve system fluidity. However, we have received a modest number of coal car orders. These orders reflect the need to replace older steel coal cars as well as keen interest in design innovations in our new coal cars. Long term, we believe broad demand for coal cars will return.

As Tim mentioned, Trinity received slightly more than 10,000 railcar orders during the 4th quarter of 2006. Many of these orders will extend production lines for a variety of railcars. Specifically, we received orders for covered hoppers for agricultural products and cement; coal cars, autoracks and tank cars. Our customer mix was diverse as agricultural and industrial shippers, railroads, utilities and third party lessors placed orders with us during the 4th quarter. Current inquiry levels indicate further momentum for orders for a variety of railcars for delivery through 2009.

I would like to make a few comments, at this time, regarding the renewable fuels business. The growth in ethanol and bio-diesel and the significant demand for railcars to transport these products has been a key driver behind the growth of Trinity’s railcar backlog as well as the overall railcar market. We believe that the demand for ethanol, bio-diesel and their feedstocks and co-products will be on-going. Construction schedules for a few bio-fuels projects have been delayed. In the few instances where construction delays required railcar delivery dates to be changed, it has provided us additional flexibility to meet other customers’ current needs. In summary, the development of bio-fuels economics, production technologies and logistics is in its early stages, however rail transportation will be central to this industry’s growth. We intend to work closely with the leading companies in the renewable fuels industry to ensure our products and services meet the industry’s needs.

Our production flexibility is one reason Trinity’s North American railcar production backlog increased more than 11% from the 3rd quarter 2006 to more than approximately 35,930 railcars at the end of the year. We are pleased with our progress to convert production lines at several facilities to respond to the growth in renewable fuels. In fact, we are actually ahead of schedule providing additional, available rail cars in a very tight, near term market. In addition, the expansion of our production at our facilities in Mexico has also progressed well. In 2006, 36% of our railcar production came from Mexico. In 2007, we expect over 42% of our total shipments to be from our facilities in Mexico. These successes are, in large part, due to our experienced supervisory personnel and established labor force combined with Trinity’s proven railcar designs and production resources. Our production teams are to be commended for their outstanding performance. We expect extended production runs of railcars serving the renewable fuels market allowing us to realize additional production efficiencies. Our overall goal is to maximize our returns by optimizing production capabilities and product mix. The increases in our backlog are evidence of our ability to quickly shift our production to meet changing market and customer requirements.

Trinity Industries Railcar Leasing and Management Services Group continued to grow its railcar fleet during the 4th quarter. Trinity shipped approximately 2,300 new railcars to its Leasing Company during the 4th quarter. This represents about 37% of Trinity’s 4th quarter railcar shipments. In total, we added 7,800 new railcars to our lease fleet during 2006 increasing our end of the year lease fleet from approximately 24,900 in 2005 to 30,550 as of December 31, 2006. A point of comparison that further illustrates our lease fleet growth; in 2001, our lease fleet totaled 11,800 railcars. The investment in our leasing business helps us develop long term relationships with the end users of our railcars as well as to generate a significant, long-term, stable earnings stream that reduces our susceptibility to market cycles.

Our committed lease backlog at the end of the 4th quarter increased to approximately 18,400 railcars or 51% of Trinity’s production backlog. This backlog extends into 2008 and has been instrumental in our long term production planning. Our fleet remains highly utilized at well over 99% at the end of 2006. The average age of the railcars in our lease fleet is 4.6 years and the average remaining lease term is approximately six years. Lease rates continue to rise as a result of high fleet utilization, strong levels of new car building and rising new car prices. Our renewal rate, the number of leases renewed as a percentage of expiring leases, has been very high indicating continued strong demand for existing railcars. Our average fleet lease rate has continued to increase quarter over quarter reflecting a high number of lease renewals and steadily rising lease rates.

In summary, we are pleased with the overall performance of our rail business. Our operational flexibility has allowed us to respond effectively to meet the changing demand among various railcar types. We continue to gain operating efficiencies through extended production runs favorably impacting operating margins. The growth of our leasing business has enabled us to meet the needs of our customers while enhancing the long term stability of Trinity. We expect our high level of performance to continue.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of William McWhirter,
Senior Vice President and Chief Financial Officer
February 22, 2007

My comments relate primarily to the fourth quarter of 2006. We will file our Form 10-K this morning. You will find more details there about our 2006 results. During my remarks, I will provide earnings per share guidance for the first quarter and the full year of 2007. Additionally, I will provide updated guidance with respect to operating margins in our Rail, Inland Barge and Energy Equipment groups.

For the fourth quarter of 2006, we reported earnings of 73 cents per diluted share from continuing operations. This compares with 52 cents per share from continuing operations in the same quarter of 2005. Revenues for the fourth quarter 2006 increased 15% over the same quarter last year to $835 million.

Earnings from continuing operations exceeded the high end of our expectations by 7 cents per share. The positive results were primarily due to an improved state tax position and strong performances in our North American Rail operations, Railcar Leasing business and Inland Barge operations.

At this time I will discuss the performance of our individual business segments.

Rail Group
First, our Rail Group. Revenues for this group increased 9% on a quarter-over-quarter basis. Rail Group sales to Trinity’s Leasing Group were $184 million in the fourth quarter of 2006 with profits of $33 million, or approximately 27 cents per diluted share. This compares with sales to our Leasing Group in the fourth quarter of 2005 of $133 million with profits of $20.5 million, or 17 cents per diluted share. These inter-company
sales and profits are eliminated in consolidation. The fourth quarter profit eliminations are higher than previously predicted as a result of the mix of cars that went into the fleet, coupled with the reclassification of certain cost items which accounted for 5 cents of the elimination.

At this time, we anticipate margins for the Rail Group of between 12% and 13% for the first quarter.

Our North American Railcar backlog as of December 31, 2006 consisted of approximately 35,930 railcars, with an estimated sales value of $2.9 billion.

Inland Barge Group
The Inland Barge Group’s fourth quarter performance was strong, posting revenues of $106 million and operating profit of $15.5 million. This reflected the strength of the backlog which, as of December 31, 2006, totaled approximately $464 million. This compares with $335 million one year ago.

We anticipate Inland Barge revenues of between $100 and $110 million in the first quarter. Operating profit margins are expected to range between 13% and 14% for the first quarter.

Energy Equipment Group
Now moving to the Energy Equipment Group. In 2006 we grew revenues by 43% in this segment. The growth was primarily driven by our Windtower expansion. During the fourth quarter we experienced some production issues and normal growth challenges. The result was operating profits of $9.2 million and margins of 9.5%. We expect this business’s first quarter margin to be affected by the weather and the continuing ramp up of the Windtower business. Overall, we still expect margins for the group of between 13% and 15% for 2007. We finished 2006 with revenues of $138 million in our Windtower business. For 2007, we look for revenues of between $225 and $250 million. Revenues for the entire segment will be approximately $450 million for 2007, which represents a 34% improvement in revenue over last year.

Construction Products Group
Our Construction Products Group generated revenues that were up 7% when compared to the same quarter of the previous year. Operating profit was $12 million for the quarter and $61.5 million for the year ended December 31, 2006.

Our Concrete and Aggregates business accounted for 61% of this group’s revenues.

Our Highway Products business, which accounted for 31% of this group’s revenues, is also performing well.

Leasing and Management Services Group
Our Railcar Leasing and Management Services Group reported revenues of $114.2 million. Because car sales from the fleet are a regular part of the business and the timing of these sales impacts our quarterly results, we focus on year-over-year results for this segment. For the year ended December 31, 2006, revenues increased by 49% over the previous year. Additionally, total operating profit increased by $50.7 million due to the additions to the fleet, increased lease rates and car sales from the fleet. Our total investment for 2006 was approximately $530 million in net fleet additions. For 2007 we anticipate between $650 and $750 million in net fleet additions. It is clear that the investments we are making in this business are providing long-term paybacks, significant growth and diversification of earnings.

Non-leasing capital expenditures for 2006 came in at $117 million. For 2007, we see non-leasing capital expenditures at between $140 and $160 million. These figures include:

Þ $40 million allocated for further expansion of our facilities in Mexico, and
Þ $15 million for the start-up of our new Windtower plant in Clinton, Illinois.

To give you some perspective on our progress in Mexico, in 2003 we produced approximately 3,200 railcars. In 2006 we produced in excess of 9,000 railcars. Looking forward to 2007, we see production rates in excess of 12,000 railcars.

During the first quarter, we will defer approximately $190 million in revenue and between $24 and $27 million in operating profits as a result of growing our Leasing business.

We anticipate earnings from continuing operations for the first quarter to range between 61 and 66 cents per diluted share. The winter weather has affected our Construction and Energy Equipment segments for the first quarter.

Overall, our company guidance for 2007 from continuing operations is for earnings per share of between $3.00 and $3.15 for the full year on a fully diluted basis. Included in our assumptions for 2007 are:

• the elimination of approximately $105 million in profit for railcars sold to our Leasing company, or approximately 83 cents per share.

In our earnings release yesterday, we provided a reconciliation of the non-GAAP term EBITDA. EBITDA from continuing operations for the fourth quarter of 2006 was approximately $130 million as compared to $90 million in the same quarter last year. EBITDA for the year ended 2006 was $500 million.

As a reminder, our revenue for 2005 is now reported at $2.7 billion, which reflects the removal of the revenues of our European and Fittings businesses that were divested during 2006.

At this time I will turn the presentation back to James for the question and answer session.


Delaware	1-6903	75-0225040
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

2525 Stemmons Freeway, Dallas, Texas		75207-2401
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Trinity Industries, Inc.

February 22, 2007	By:	William A. McWhirter II

		Name: William A. McWhirter II
		Title: Senior Vice President and Chief Financial Officer


Exhibit No.		Description

99.1		News Release dated February 21, 2007 with respect to the operating results for the three months and year ended December 31, 2006.
99.2		Conference call script of February 22, 2007 for James E. Perry, Vice President and Treasurer.
99.3		Conference call script of February 22, 2007 for Timothy R. Wallace, Chairman, President, and Chief Executive Offficer.
99.4		Conference call script of February 22, 2007 for D. Stephen Menzies, Senior Vice President and Group President of the Rail Group.
99.5		Conference call script of February 22, 2007 of William A. McWhirter II, Senior Vice President and Chief Financial Officer.


Date of Report (Date of Earliest Event Reported):		February 21, 2007


Registrant’s telephone number, including area code:		214-631-4420