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

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

Trinity Industries, Inc. Reports Highest Quarterly Revenues in Company History
and Earnings Growth of 37% for Fourth Quarter

DALLAS – February 20, 2008 – Trinity Industries, Inc. (NYSE:TRN) today reported earnings from continuing operations of $78.5 million, or $0.97 per common diluted share for the fourth quarter ended December 31, 2007. The quarter’s earnings increased 37% over the same quarter in 2006 and were the highest fourth quarter earnings in the Company’s history. Earnings from continuing operations for the same quarter of 2006 were $57.4 million, or $0.72 per common diluted share.

Net income for the fourth quarter of 2007 was $78.3 million, or $0.97 per common diluted share compared with net income of $56.5 million, or $0.71 per common diluted share for the same quarter a year ago.

Revenues for the fourth quarter of 2007 were $1.1 billion compared with revenues of $835.0 million for the same quarter in 2006. Revenues in the fourth quarter of 2007 were the highest quarterly revenues in the Company’s history.

For the year ended December 31, 2007, the Company reported earnings from continuing operations of $293.8 million, or $3.65 per common diluted share, compared with earnings from continuing operations of $215.5 million or $2.72 per common diluted share in 2006. For the year ended December 31, 2007, the Company reported net income of $293.1 million, or $3.65 per common diluted share, compared with net income of $230.1 million, or $2.90 per common diluted share in 2006.

For the year ended December 31, 2007, the Company reported record revenues of $3.8 billion as compared to revenues of $3.2 billion in 2006.

“Our fourth quarter results represent a strong finish to a great year for Trinity,” said Timothy R. Wallace, Trinity’s Chairman, President, and CEO. “I credit our employees for our record revenues and high level of earnings. Our employees’ dedication to operational excellence during the fourth quarter accelerated the momentum that began building early in the year.”

As previously reported TrinityRail^® shipped approximately 6,740 railcars and received firm orders for approximately 7,310 railcars during the fourth quarter. As of December 31, 2007, TrinityRail’s^® order backlog totaled approximately $2.7 billion, representing approximately 31,870 railcars, as compared to a railcar order backlog of approximately $2.9 billion, representing approximately 35,930 railcars as of December 31, 2006.

Trinity’s railcar leasing business continued to grow during the fourth quarter of 2007. At December 31, 2007, Trinity Industries Leasing Company’s fleet totaled approximately 36,090 railcars. This compares to approximately 30,550 railcars as of December 31, 2006.

During the fourth quarter, Trinity sold $190.2 million of railcars to TRIP Rail Leasing LLC (“TRIP”), including $96.1 million from Trinity’s leasing company. Since TRIP’s inception in June 2007, through December 31, it has purchased $516.2 million of railcars from Trinity, including both new car purchases and purchases from Trinity’s leasing company. All railcar sales to TRIP have firm leases with independent third parties.

TRIP is a leasing company formed in June 2007. It has committed to purchase approximately $1.4 billion worth of railcars during a two-year period from Trinity’s railcar manufacturing companies and leasing company. Trinity holds a 20% equity ownership in TRIP Rail Holdings LLC, TRIP’s parent company, and is responsible for managing the cars.

The Inland Barge Group’s backlog grew 62%, to approximately $753 million as of December 31, 2007, compared to approximately $464 million as of December 31, 2006. Revenues for the Inland Barge Group grew 30% during the fourth quarter as compared to the same quarter of 2006. “We are pleased with the Barge Group’s strong operating performance in the fourth quarter and throughout all of 2007,” Wallace said.

Revenues in the Energy Equipment Group grew 46% during the fourth quarter over the same quarter in 2006, while operating profit grew 82%, a result of the steady expansion of Trinity’s structural wind towers business for sale to customers in the wind energy industry. The Construction Products Group’s revenues grew 7% over the same quarter in 2006. “Our initiatives during the past few years, which were designed to strengthen our multi-industry structure, are showing results,” Wallace said.

First Quarter 2008 and Full Year 2008 Earnings Outlook
For the first quarter of 2008, the Company expects earnings from continuing operations ranging from $0.69 to $0.74 per common diluted share. For 2008, the Company expects earnings from continuing operations ranging from $3.20 to $3.50 per common diluted share.

Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on February 21, 2008 to discuss its fourth 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) 220-2650 until 11:59 p.m. Eastern on February 28, 2008.

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.

Condensed Consolidated Income Statements
(in millions, except per share amounts)


	Three Months Ended December 31,
	2007			2006
Revenues	$	1,103.3		$	835.0
Operating profit	$	146.1		$	98.0
Other expense		17.1			10.8

Income from continuing operations before income taxes		129.0			87.2
Provision for income taxes		50.5			29.8

Income from continuing operations		78.5			57.4
Discontinued operations:
Loss on sale of discontinued operations, net of benefit for income taxes of $- and $(1.1)		—			(0.6	)
Loss from discontinued operations, net of benefit for income taxes of $- and $ (0.6)		(0.2	)		(0.3	)

Net income	$	78.3		$	56.5

Net income per common share:
Basic:
Continuing operations	$	0.99		$	0.74
Discontinued operations		—			(0.01	)

	$	0.99		$	0.73

Diluted:
Continuing operations	$	0.97		$	0.72
Discontinued operations		—			(0.01	)

	$	0.97		$	0.71

Weighted average number of shares outstanding:
Basic		79.1			77.8
Diluted		80.5			79.5

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


	Year Ended December 31,
	2007			2006
Revenues	$	3,832.8		$	3,218.9
Operating profit	$	512.8		$	382.6
Other expense		49.6			34.1

Income from continuing operations before income taxes		463.2			348.5
Provision for income taxes		169.4			133.0

Income from continuing operations		293.8			215.5
Discontinued operations:
Gain on sale of discontinued operations, net of provision for income taxes of $- and $12.2		—			20.4
Loss from discontinued operations, net of benefit for income taxes of $(0.2) and $(1.7)		(0.7	)		(5.8	)

Net income	$	293.1		$	230.1

Net income per common share:
Basic:
Continuing operations	$	3.73		$	2.80
Discontinued operations		(0.01	)		0.19

	$	3.72		$	2.99

Diluted:
Continuing operations	$	3.65		$	2.72
Discontinued operations		(0.00	)		0.18

	$	3.65		$	2.90

Weighted average number of shares outstanding:
Basic		78.7			76.9
Diluted		80.4			79.3


	Three Months Ended December 31,
Revenues:	2007			2006
Rail Group	$	592.4		$	537.4
Construction Products Group		178.3			167.1
Inland Barge Group		137.4			105.5
Energy Equipment Group		141.8			97.1
Railcar Leasing and Management Services Group		194.3			114.2
All Other		19.4			15.7
Eliminations – lease subsidiary		(137.6	)		(184.4	)
Eliminations – other		(22.7	)		(17.6	)

Consolidated Total	$	1,103.3		$	835.0


Operating profit (loss):	Three Months Ended December 31,
	2007			2006
Rail Group	$	76.4		$	66.8
Construction Products Group		13.3			12.0
Inland Barge Group		26.3			15.5
Energy Equipment Group		16.7			9.2
Railcar Leasing and Management Services Group		46.9			40.2
All Other		(0.2	)		(1.5	)
Corporate		(8.2	)		(11.1	)
Eliminations – lease subsidiary		(22.2	)		(33.0	)
Eliminations – other		(2.9	)		(0.1	)

Consolidated Total	$	146.1		$	98.0


	Year Ended December 31,
Revenues:	2007			2006
Rail Group	$	2,381.5		$	2,142.6
Construction Products Group		733.0			695.3
Inland Barge Group		493.2			371.2
Energy Equipment Group		433.9			336.5
Railcar Leasing and Management Services Group		631.7			303.7
All Other		69.8			55.2
Eliminations – lease subsidiary		(828.5	)		(620.0	)
Eliminations – other		(81.8	)		(65.6	)

Consolidated Total	$	3,832.8		$	3,218.9


Operating profit (loss):	Year Ended December 31,
	2007			2006
Rail Group	$	347.6		$	253.9
Construction Products Group		58.2			61.5
Inland Barge Group		72.6			44.5
Energy Equipment Group		50.1			45.7
Railcar Leasing and Management Services Group		161.2			106.5
All Other		1.8			(8.8	)
Corporate		(34.9	)		(37.9	)
Eliminations – lease subsidiary		(138.0	)		(83.3	)
Eliminations – other		(5.8	)		0.5

Consolidated Total	$	512.8		$	382.6

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


	December 31,			December 31,
	2007			2006
Cash and cash equivalents	$	289.6		$	311.5
Receivables, net of allowance		296.5			252.5
Inventories		586.7			528.9
Net property, plant, and equipment (1)		2,069.8			1,590.3
Other assets		800.6			742.4

	$	4,043.2		$	3,425.6

Accounts payable and accrued liabilities	$	684.3		$	655.8
Debt (2)		1,374.2			1,198.9
Deferred income		58.4			42.9
Other liabilities		199.6			124.5
Stockholders’ equity		1,726.7			1,403.5

	$	4,043.2		$	3,425.6

(1) Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment	$	1,065.6		$	943.1
Accumulated depreciation		(565.4	)		(564.6	)

		500.2			378.5

Leasing:
Machinery and other		36.1			35.1
Equipment on lease		1,996.7			1,511.5
Accumulated depreciation		(214.4	)		(163.9	)

		1,818.4			1,382.7

Deferred profit on railcars sold to the Leasing Group		(248.8	)		(170.9	)

	$	2,069.8		$	1,590.3

(2) Debt
Corporate/Manufacturing – Recourse:
Revolving credit facility	$	—		$	—
Convertible subordinated notes		450.0			450.0
Senior notes		201.5			201.5
Other		3.1			1.8

		654.6			653.3
Leasing – Recourse:
Equipment trust certificates		75.7			119.1

Total recourse		730.3			772.4

Leasing – Non-recourse:
Secured railcar equipment notes		334.1			347.5
Warehouse facility		309.8			79.0

		643.9			426.5

	$	1,374.2		$	1,198.9

“EBITDA” is defined as net income (loss) plus interest expense, income taxes, and depreciation and amortization. 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.


	Three Months Ended December 31,
	2007		2006
Income from continuing operations	$	78.5	$	57.4
Add:
Interest expense		20.4		17.6
Provision for income taxes		50.5		29.8
Depreciation and amortization expense		32.9		24.3

Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization expense	$	182.3	$	129.1


	Year Ended December 31,
	2007		2006
Income from continuing operations	$	293.8	$	215.5
Add:
Interest expense		76.2		64.1
Provision for income taxes		169.4		133.0
Depreciation and amortization expense		118.9		87.6

Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization expense	$	658.3	$	500.2

Fourth Quarter 2007 Results Conference Call
James E. Perry, Vice President, Finance and Treasurer
February 21, 2008 — FINAL

Thank you, Collin
Good morning from Dallas, Texas and welcome to the Trinity Industries Fourth Quarter 2007 Results Conference Call. I’m James Perry, Vice President, Finance and Treasurer for Trinity. Thank you for being with us today.

•

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

Also in the room today is Chas Michel, Vice President, Controller, and Chief Accounting Officer.

A replay of this conference call will be available starting one hour after the conference call ends today through midnight on Thursday, February 28th. The replay number is (402) 220-2650.

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.

“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.”

On December 31^st, 2007, our borrowings at the corporate level were the 450 million dollars of convertible subordinated notes, 201.5 million dollars of senior notes and 3.1 million dollars of other indebtedness. The Leasing Company’s debt included 334.1 million dollars of Secured Railcar Equipment Notes, 75.7 million dollars of Equipment Trust Certificates and 309.8 million dollars outstanding under our railcar leasing warehouse facility.

Our Total Debt to Total Capital ratio was 44 percent on December 31^st, 2007, as compared to 46 percent at December 31st, 2006. Net of cash, our Net Debt to Total Capital ratio was 39 percent on December 31^st, 2007, the same as the ratio at December 31st, 2006. On December 31^st, 2007, our cash position was 289.6 million dollars.

Last week, our leasing subsidiary, Trinity Industries Leasing Company, increased its non-recourse warehouse facility from 400 million dollars to 600 million dollars and maintained the availability period of the facility through August, 2009. We anticipate a structured lease financing during 2008, but this increase, combined with our cash at year-end of 289.6 million dollars and our 425 million dollar corporate revolving credit facility, provides us with adequate liquidity to continue the growth of our lease fleet.

In December, 2007, Trinity announced authorization for a 200 million dollar share repurchase program through 2009. During the fourth quarter, we purchased 104,200 shares of stock in the open market for 2.9 million dollars. We will provide details of our purchases when we report our results at the end of each quarter.

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

Remember, a replay of this call will be available starting one hour after this call ends today through midnight, Thursday, February 28th. The access number is (402) 220-2650. 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 continue to be pleased with our results. 2007 was a record year for Trinity in many respects. Our revenues increased 19% to an all time high of $3.8 billion dollars. The majority of our revenue increase was derived from internal expansion initiatives. Our net income increased 27% to a record $293 million in 2007. This is the 4^th year of strong revenue growth. Our revenues have increased more than $2.5 billion in the last 4 years. This is over a 200% increase.

All of our business segments continued to perform well during the 4^th quarter. Our focus on operational excellence and manufacturing flexibility helped each of our businesses increase their profitability. We are continuing to invest in resources to improve and grow our businesses. During 2007, we continued to shift production to product lines with the greatest opportunities for growth and returns.

Although the U.S. economic growth has moderated, we expect 2008 to be a good year for Trinity overall. Our railcar, barge and structural wind towers businesses entered the new year with strong backlogs totaling more than $4 billion. At this point, we continue to see railcar demand moderating and primarily driven by replacement needs. We expect quarterly results for our Rail Group to be a little choppy until demand for railcars improves. In all of our businesses, we remain highly focused on execution while working to align sales with existing production run rates. Our employees are highly seasoned and adept at adjusting to changing market conditions.

In 2007 our North American railcar shipments increased 8.5% to approximately 27,370 units. TrinityRail® is focused on maintaining similar production levels during 2008. This will allow our rail businesses to retain many of the efficiencies they realized during the past few years. Predicting precise demand levels on an ongoing basis is difficult in moderate markets. Availability of equipment for rapid delivery is crucial in this type of market. Fortunately, our broad product line allows us to pursue a wide variety of orders. Steve will provide more insight into TrinityRail’s plans during his update.

Our Railcar Leasing and Management Services Group also had a great quarter. Our leasing company continues to grow while performing a strategic role for Trinity. We will continue to invest in our future by increasing the size of our lease fleet. The formation of TRIP Holdings during 2007 provided us additional financial resources and greatly enhanced our market flexibility. Steve will also provide more details about our Leasing and Management Services Group in his report.

Trinity’s Inland Barge Group continues to perform well. During 2007, our Inland Barge Group’s profitability improved and shipments increased by 25%. The increase in operating profit is directly related to productivity benefits associated with long production runs. During the 4^th quarter, our barge company’s backlog remained steady. Our customers continue to visit with us about opportunities for future business. We are exploring a variety of ways to enhance our productivity and expand product offerings. Our barge backlog extends into 2009.

Our Construction Products Group continues to perform well. Demand continues to be steady. Weather conditions in the southwestern part of the United States were construction friendly during the first part of the 4^th quarter, but deteriorated slightly in December. So far this quarter, the weather in Texas has been moderately construction friendly. Our highway products business is expecting steady demand during the construction season. During 2007, we completed 7 acquisitions of small, bolt-on concrete, aggregate and asphalt businesses. We expect to continue making similar acquisitions. We are optimistic about the potential for steady growth and improvement in this business.

Our structural wind towers business continued to expand during 2007. We grew our capacity by converting an idle railcar plant located in Southern Illinois to wind tower production and by constructing a new facility in Mexico. Wind tower structures are currently being produced in our new plant. I am very proud of the success we are having as we expand this business. We broke ground on our new plant in Mexico during the 2^nd quarter of 2007 and we expect to ship towers this month. Also during 2007, our wind tower structures business worked synergistically with several of Trinity’s other businesses. Our concrete business provided concrete for wind tower foundations and our trucking transportation company delivered wind tower structures to job sites.

Demand for wind towers is robust. Our order backlog was more than $700 million dollars at the end of the year and we have a number of inquiries in the pipeline. We continue to explore additional opportunities to serve the North American wind energy market. We are the largest, structural wind tower manufacturer in North America and have aggressive growth plans during the next 3-5 years. In our 5-year growth plan for this business we expect to reach an annual revenue level of between $800 million and $900 million.

In summary, I am very pleased with our 4^th quarter results and remain optimistic about the opportunities for our businesses. We continue to benefit from the investments we made during the past decade. Our larger businesses have strong backlogs and we are a highly flexible company. We are keeping a close watch on the vital signs of the markets we serve and are prepared to respond should the economy or demand shift in either direction. We continue to make additional investments that should benefit us for the future. Trinity currently has a great deal of positive momentum, a strong balance sheet, and great team of people working together. I expect us to continue to capitalize on opportunities. At this time I’ll turn it over to Steve Menzies for his comments.

Trinity Industries, Inc.
Analysts Conference Call
February 21, 2008
Comments by Steve Menzies

TrinityRail continued to perform well during the 4th quarter of 2007. Our shipments increased year over year, our order backlog increased from the 3^rd quarter and our lease fleet grew continued to grow.

TrinityRail shipments increased 7.1% to 6,745 railcars compared to the 4^th quarter 2006. For the year 2007, we shipped approximately 27, 370 railcars, an 8.5% increase compared to the prior year. We expect our production momentum to continue during the first half of 2008. Although, accurately forecasting exact timing of shipments is becoming more difficult given the current dynamics of the market. As Tim mentioned, we expect overall railcar demand to fluctuate throughout 2008. As a result, we are providing shipment information for the first six months as opposed to the first quarter. We believe these figures provide a more reliable estimate of shipment activity. At this time, we expect shipments totaling between 12,500 and 13,500 railcars during the first half of 2008.

A key component in our marketing strategy is ensuring railcars are available when our customers need them. Thus far, we have been very successful at anticipating the needs of our customers. Our flexibility and our ability to meet customer delivery requirements, often on short notice, are key competitive factors.

One of our goals is to retain the operating efficiencies we gained during the last few years. By keeping our production volumes stable, we should be able to accomplish this. Continued improvements in operating efficiencies, however, will only partially offset the downward pricing pressures we anticipate during 2008. We do expect our operating margins to decline amid a highly competitive environment.

With regard to the overall railcar market, industry railcar orders during the 4^th quarter continued at a moderate pace. Approximately 24,100 railcar orders were placed industry wide during the 4th quarter and total year 2007 industry orders were approximately 54,300. Orders for the 4^th quarter of 2007 were skewed upwards by long term, multi-year orders reported by other railcar manufacturers. At year end, the total industry backlog stood at approximately 76,700 compared to a backlog of 67,700 railcars at the end of the 3^rd quarter. Trinity’s order backlog comprises 42% of the total industry backlog. Recent order inquiry levels indicate 1st quarter 2008 orders could be in line with 2007 order levels. Independent forecasts place 2008 railcar production in the low 50,000 railcar range which is consistent with the market inputs we review. We also believe, given today’s economic environment and North American fleet attrition rates that demand could continue at a similar rate through the 1^st half of 2009. The replacement cycle for an aging North American railcar fleet will be a consistent driver for demand providing a theoretical floor to railcar production.

As you know, railcar demand shifts periodically from car type to car type and fluctuates from quarter to quarter. Order levels in the 4th quarter reflected steady demand for autoracks, multiple types of covered hoppers and tank cars, improving demand for coal cars and continued weak demand in select markets such as intermodal and box cars. More than 60% of the total railcar orders for the year were for covered hoppers and tank cars driven by growth in renewable fuels, improved grain export shipments and chemical loadings growth. The need to replace smaller, less efficient covered hoppers and tank cars has also boosted demand for these car types.

During the 4th quarter of 2007, TrinityRail received approximately 7,310 railcar orders. Many of these orders extend current production lines for a variety of railcars. Specifically, we received orders from 3^rd party leasing companies, railroads, industrial shippers and utilities for covered hoppers, coal cars, box cars, open top hoppers, flat cars, autoracks and tank cars. The diversity of our orders reflects the broad breadth of TrinityRail’s product line. Total railcar orders for 2007 were approximately 23,370 or 43% of the total railcar market.

At the end of the 4^th quarter, TrinityRail’s firm order backlog was approximately 31,870 railcars compared to approximately 31,300 at the end of the 3rd quarter 2007. Our strong order backlog, which extends through 2009, produces good visibility for our production plans. This visibility provides important benefits. It enables effective production planning, positions us to pursue additional operating efficiencies and allows us to retain our highly trained and skilled labor force. Our motivated work force is keenly focused on achieving further efficiencies, as well as, reducing production lead times. Our planned production for 2008 includes a number of open slots weighted toward the second half of the year. We have experienced some shifting of existing orders from 2008 to 2009 for railcars serving the renewable fuels market due to plant construction delays creating some voids in our 2008 production plans. We believe we have now firmed our production plans for renewable fuels orders for 2008 production.

We will continue to aggressively pursue additional orders which will extend existing production lines to maintain current production rates. Our flexibility will allow us to adjust production rates up or down as necessary. We are building railcars to hold for future sale to bridge or extend production continuity. Our broad product line, operating flexibility and ability to deliver railcars when our customers require them provides us a competitive advantage to secure orders and sustain production.

We are particularly pleased with the production growth and operating efficiencies of our Mexico facilities. During 2008, we expect to produce 35 to 40% of our total railcar deliveries in our Mexico plants. We have additional capacity in Mexico that we can use when necessary. We continue to invest resources in Mexico to expand our ability to manufacture additional railcar types which will further enhance our operating flexibility.

Our Railcar Leasing and Management Services Group continued to grow its railcar fleet during the 4th quarter. TrinityRail shipped 1,695 new railcars to customers of our Leasing Company during the 4th quarter – all subject to firm, non-cancelable leases. This represented about 25% of TrinityRail’s 4th quarter railcar shipments.

During the 4th quarter, we sold approximately 1,500 railcars from our lease fleet including 1,180 railcars to TRIP Holdings, the independent leasing company formed last summer. Sales from our lease fleet are an ordinary course of business to balance our portfolio, bundle with new railcar sales and to respond to specific customer requests. As a result of these 4th quarter sales and our fleet additions, our lease fleet grew to approximately 36,090 railcars compared to 30,550 at the end of 2006.

Overall demand for railcar leasing services continues to increase as evidenced by our strong leasing backlog. Trinity’s committed lease backlog as of December 31, 2007 was approximately 17,730 railcars or 56% of our total production backlog. We continue to see a long term trend for railroads and industrial producers to use their capital resources to acquire assets which are core to their businesses while relying on leasing for operating assets such as railcars.

The investment in our leasing business provides several benefits. It helps us to develop long term relationships with the end users of our railcars and provides an important distribution channel for our railcar manufacturing. Additionally, it brings efficiencies to our production planning and generates a significant, long-term, stable earnings stream.

Our lease fleet utilization remained at more than 99% at the end of the 2007. The average age of the railcars in our lease fleet is 4.5 years and the average remaining lease term is approximately 5.5 years. These two key operating metrics give support to our ability to maintain high fleet utilization. Our newer, highly productive railcars are less likely to be returned from lessees upon lease expiration during a market downturn. Customers typically return older, less efficient railcars as they downsize their fleets. Our high average remaining lease term provides a hedge against short term market downturns therefore mitigating some remarketing risks. Renewal rates have continued to increase as the railcars available for renewal were placed into service during a low lease rate environment in the 2002 to 2004 time period.

In summary, TrinityRail is well positioned to respond to the challenges of the market in the near term and the opportunities available in the long term. Our operating flexibility and product line have enabled us to meet shifting demand among various railcar types thereby building our strong railcar backlog. By sustaining current production levels we can retain our skilled labor force, realize further operating efficiencies and be ready for market recovery. We continue to commit considerable resources to meet the growing leasing needs of our customers. The growth of our leasing business has supported our production plans while enhancing Trinity’s long term financial stability. I am very pleased with the overall performance of TrinityRail and with the more than 7,000 men and women dedicated to achieving our goals.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of William McWhirter,
Senior Vice President and Chief Financial Officer
February 21, 2008

My comments relate primarily to the fourth quarter of 2007. We will file our Form 10-K this morning. You will find more details there about our full year.

For the fourth quarter of 2007, we reported earnings of 97 cents per diluted share from continuing operations. This compares with 72 cents per share from continuing operations in the same quarter of 2006. Revenues for the fourth quarter of 2007 increased 32% over the same quarter last year to a record $1.1 billion.

Earnings from continuing operations exceeded the high end of our expectations by 5 cents per share. These positive results were primarily due to the following:

Revenues for this group increased 10% on a quarter-over-quarter basis. Rail Group sales to Trinity’s Leasing and Management Services Group were $137 million in the fourth quarter of 2007 with profits of $22.2 million, or approximately 18 cents per diluted share. This compares with sales to our Leasing Group in the fourth quarter of 2006 of $184 million with profits of $33 million or 27 cents per diluted share. These inter-company sales and profits are eliminated in consolidation.

At this time, we anticipate margins for the Rail Group of between 11% and 12% for the first quarter. As we look forward, we expect margins of between 8% and 10% for the remaining three quarters of the year. This margin level represents the competitive pricing environment and the mix of car types to be built during the year.

The Rail Group backlog as of December 31, 2007 consisted of approximately 31,870 railcars, with an estimated sales value of $2.7 billion. Our Railcar backlog is broken down approximately as follows:

The Inland Barge Group’s fourth quarter performance was once again very strong, posting revenues of $137 million and operating profit of $26.3 million. The results of the Inland Barge Group continue to reflect a high level of operational excellence. This group’s backlog, as of December 31, 2007, totaled approximately $753 million. This compares with $464 million one year ago.

We anticipate Inland Barge revenues of between $130 and $140 million in the first quarter. Operating profit margins are expected to range between 15% and 17% during the quarter.

During the fourth quarter, this group’s revenues topped $141 million, a new record. Operating profits were $16.7 million with an operating profit margin of 11.8%. The Energy Equipment Group’s revenue growth continues to be driven by our wind tower business. We anticipate the wind tower business will account for approximately $380 million in revenue for 2008 representing a 54% growth from 2007.

Construction Products Group
Revenues for our Construction Products Group grew slightly when compared to the same quarter of the previous year. Operating profit was $13.3 million for the quarter, representing a 10% improvement over last year.

Leasing and Management Services Group
Our Railcar Leasing and Management Services Group reported revenues of $194 million compared with $114 million in the same quarter of 2006. Operating profit was $47 million with $17.8 million resulting from car sales. During the fourth quarter, car sales from the fleet were $121 million. TRIP accounted for $96 million of those sales. In addition, TRIP purchased $94 million worth of railcars from our manufacturing companies during the quarter.

As we have discussed in the past, TRIP is a leasing company formed in June 2007. It has committed to purchase approximately $1.4 billion worth of railcars during a two-year period from Trinity’s railcar manufacturing companies and leasing company. Trinity holds a 20% equity ownership in TRIP through a subsidiary and is responsible for managing the cars. All sales to TRIP are for railcars with firm leases in place with independent third-parties.

TRIP has the capability to expand its purchases beyond its current commitment of $1.4 billion. TRIP benefits Trinity by allowing our leasing company to continue its core competency of lease originations while realizing a portion of the economic upside associated with railcar leasing.

For 2008, we now anticipate between $650 and $750 million in net additions to our Trinity Leasing fleet. As a form of clarity, net fleet additions are the fair market value of cars added to our fleet less the proceeds of cars sold from the fleet.

For 2008, we expect non-leasing capital expenditures of between $180 and $190 million.

During the first quarter, we expect to defer approximately $250 million in revenue and between $28 and $32 million in operating profits as we grow our own leasing business and sell cars to TRIP. This represents between 23 and 26 cents per diluted share.

We anticipate earnings from continuing operations for the first quarter of 2008 to range between 69 and 74 cents per diluted share. Included in these projected results are car sales from our fleet of $38 million versus $121 million in our 4^th quarter of 2007. Our 2008 full year guidance is slightly improved at this time at $3.20 to $3.50 per diluted 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 2007 was approximately $182.3 million as compared to $129.1 million in the same quarter last year.

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 21, 2008	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 20, 2008 with respect to the operating results for the three months and year ended December 31, 2007.
99.2		Conference call script of February 21, 2008 for James E. Perry, Vice President, Finance and Treasurer.
99.3		Conference call script of February 21, 2008 for Timothy R. Wallace, Chairman, President, and Chief Executive Offficer.
99.4		Conference call script of February 21, 2008 for D. Stephen Menzies, Senior Vice President and Group President of the Rail Group.
99.5		Conference call script of February 21, 2008 of William A. McWhirter II, Senior Vice President and Chief Financial Officer.


Date of Report (Date of Earliest Event Reported):		February 20, 2008


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


Backlog to our Leasing Company Backlog to TRIP Backlog to third parties		$1.4 billion, $500 million and $750 million


In addition to me, you will hear today from: