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

Investor Contact:
Gail M. Peck
Treasurer
Trinity Industries, Inc.
214/631-4420

DALLAS – July 26, 2011 – Trinity Industries, Inc. (NYSE:TRN) today reported net income attributable to Trinity Industries’ stockholders of $30.0 million, or $0.37 per common diluted share for the second quarter ended June 30, 2011. Net income for the same quarter of 2010 was $18.4 million, or $0.23 per common diluted share.

Revenues for the second quarter of 2011 were $710.5 million compared with revenues of $543.1 million for the same quarter of 2010. The Company reported an operating profit of $95.4 million in the second quarter of 2011 compared to an operating profit of $78.9 million for the same quarter last year.

“We continue to be encouraged by the level of demand for products in our railcar and barge businesses. This is reflected in their improving order backlogs.” said Timothy R. Wallace, Trinity’s Chairman, CEO, and President. “Subsequent to quarter end, we also announced a successful refinancing of a portion of our railcar leasing company’s debt, which is important for the growth of that business.”

In the second quarter of 2011, the Rail Group reported revenues of $280.7 million and an operating profit of $15.4 million. This compares to revenues of $112.9 million and an operating loss of $2.7 million in the second quarter of 2010. The Rail Group shipped approximately 3,115 railcars and received orders for approximately 7,860 railcars during the second quarter. As of June 30, 2011, the Rail Group backlog grew to approximately $2.2 billion, representing approximately 27,240 railcars compared to a backlog of approximately $1.8 billion as of March 31, 2011, representing approximately 22,490 railcars.

During the second quarter of 2011, the Railcar Leasing and Management Services Group reported revenues of $130.4 million and an operating profit of $59.7 million. This compares to revenues of $119.6 million and an operating profit of $49.2 million during the second quarter of 2010.

The Inland Barge Group reported revenues of $117.8 million and an operating profit of $19.1 million in the second quarter of 2011 compared to revenues of $99.5 million and an operating profit of $12.0 million in the second quarter of 2010.

In the second quarter of 2011, the Inland Barge Group experienced flooding at its barge manufacturing facility in Missouri. Operating profit in the second quarter of 2011 included approximately $8.4 million in costs, net of estimated insurance recoveries, due to damages and lost productivity at that facility. These costs were partially offset by additional insurance recoveries reported in the quarter of $4.0 million related to claims arising from a separate flood that occurred in the second quarter of 2010 at its Tennessee manufacturing facility. The second quarter results for 2010 included approximately $3.4 million of flood-related costs, net of insurance recoveries, related to the Tennessee flood.

During the second quarter of 2011, the Inland Barge Group received approximately $151 million of orders and had a backlog of approximately $494 million as of June 30, 2011 compared to a backlog of approximately $461 million as of March 31, 2011.

The Energy Equipment Group recorded revenues of $117.5 million in the second quarter of 2011 compared to revenues of $115.3 million in the same quarter of 2010. The group produced an operating profit of $1.2 million in the second quarter of 2011 compared to an operating profit of $13.5 million in the second quarter of 2010. The decrease in operating profit for the three month period ended June 30, 2011 was due to the change in product mix for this group as well as production inefficiencies associated with producing a new line of larger wind towers. The backlog for structural wind towers as of June 30, 2011 was approximately $917 million compared to approximately $974 million as of March 31, 2011.

Revenues in the Construction Products Group were $149.3 million in the second quarter of 2011 compared to revenues of $170.9 million in the second quarter of 2010. The group recorded an operating profit of $16.1 million in the second quarter of 2011 compared to an operating profit of $17.7 million in the second quarter of 2010. The decrease in revenues for the three month period ended June 30, 2011 compared to the same period in 2010 was primarily attributable to lower revenues in our Concrete and Aggregates business, partially offset by higher volumes in our Highway Products business. The reduction in Concrete and Aggregates revenues resulted from the divestitures of our asphalt operations in August 2010 and of our Central Texas Region ready mix concrete facilities in April 2011.

Earnings Outlook
The Company anticipates earnings per common diluted share of between $0.32 and $0.37 for the third quarter of 2011. For the full year 2011, the Company anticipates earnings per common diluted share of between $1.35 and $1.45. Our results for the third quarter and full year will depend on a number of factors, including: the level of operating leverage our rail businesses achieve as they ramp up production in response to increased demand; the impact of product mix changes in our wind towers business; the impact of weather conditions on our Construction Products businesses; and the rate of recovery from the flood at our Missouri barge facility.

Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on July 27, 2011 to discuss its second 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) 220-0119 until 11:59 p.m. Eastern on August 3, 2011.

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.

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


	Three Months Ended June 30,
	2011			2010
Revenues	$	710.5		$	543.1
Operating costs:
Cost of revenues		567.6			418.7
Selling, engineering, and administrative expenses		47.5			45.5

		615.1			464.2

Operating profit		95.4			78.9
Interest expense, net		43.4			45.0
Other (income) expense		(0.6	)		(0.9	)

Income before income taxes		52.6			34.8
Provision for income taxes		21.0			13.7

Net income		31.6			21.1
Net income attributable to noncontrolling interest		1.6			2.7

Net income attributable to Trinity Industries, Inc.	$	30.0		$	18.4

Net income attributable to Trinity Industries, Inc. per common share:
Basic	$	0.37		$	0.23
Diluted	$	0.37		$	0.23
Weighted average number of shares outstanding:
Basic		77.4			76.7
Diluted		77.7			76.9

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


	Six Months Ended June 30,
	2011					2010
Revenues	$	1,354.7				$	997.1
Operating costs:
Cost of revenues		1,076.0					772.3
Selling, engineering, and administrative expenses		97.8			93.9

		1,173.8			866.2

Operating profit		180.9					130.9
Interest expense, net		87.6			90.3
Other (income) expense		(1.1	)		0.9

Income before income taxes		94.4			39.7
Provision for income taxes		37.2			14.3

Net income		57.2			25.4
Net income attributable to noncontrolling interest		3.0					5.0

Net income attributable to Trinity Industries, Inc.	$	54.2				$	20.4

Net income attributable to Trinity Industries, Inc. per common share:
Basic	$	0.68		$0.26
Diluted	$	0.67		$0.26
Weighted average number of shares outstanding:
Basic		77.2					76.6
Diluted		77.5					76.7

Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)


	Three Months Ended June 30,
Revenues:	2011			2010
Rail Group	$	280.7		$	112.9
Construction Products Group		149.3			170.9
Inland Barge Group		117.8			99.5
Energy Equipment Group		117.5			115.3
Railcar Leasing and Management Services Group		130.4			119.6
All Other		14.3			12.4
Eliminations – lease subsidiary		(79.5	)		(65.9	)
Eliminations – other		(20.0	)		(21.6	)

Consolidated Total	$	710.5		$	543.1


Operating profit (loss):	Three Months Ended June 30,
	2011			2010
Rail Group	$	15.4		$	(2.7	)
Construction Products Group		16.1			17.7
Inland Barge Group		19.1			12.0
Energy Equipment Group		1.2			13.5
Railcar Leasing and Management Services Group		59.7			49.2
All Other		(0.2	)		(2.1	)
Corporate		(8.4	)		(6.5	)
Eliminations – lease subsidiary		(7.1	)		(1.9	)
Eliminations – other		(0.4	)		(0.3	)

Consolidated Total	$	95.4		$	78.9

Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)


	Six Months Ended June 30,
Revenues:	2011			2010
Rail Group	$	500.5		$	186.5
Construction Products Group		282.9			289.3
Inland Barge Group		255.7			196.9
Energy Equipment Group		236.2			205.4
Railcar Leasing and Management Services Group		260.2			240.8
All Other		27.4			22.1
Eliminations – lease subsidiary		(164.9	)		(103.9	)
Eliminations – other		(43.3	)		(40.0	)

Consolidated Total	$	1,354.7		$	997.1


Operating profit (loss):	Six Months Ended June 30,
	2011			2010
Rail Group	$	24.7		$	(10.6	)
Construction Products Group		24.4			20.4
Inland Barge Group		40.8			29.8
Energy Equipment Group		11.7			23.9
Railcar Leasing and Management Services Group		114.4			97.4
All Other		(0.5	)		(4.7	)
Corporate		(19.1	)		(19.0	)
Eliminations – lease subsidiary		(15.2	)		(5.5	)
Eliminations – other		(0.3	)		(0.8	)

Consolidated Total	$	180.9		$	130.9

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


	June 30,		December 31,
	2011		2010
Cash and cash equivalents	$	257.1	$	354.0
Short-term marketable securities		42.0		158.0
Receivables, net of allowance		333.7		232.0
Income tax receivable		4.4		7.4
Inventories		473.7		331.3
Net property, plant, and equipment		4,186.4		4,112.0
Goodwill		203.6		197.6
Restricted cash		205.3		207.1
Other assets		170.5		160.6

	$	5,876.7	$	5,760.0

Accounts payable	$	190.0	$	132.8
Accrued liabilities		370.5		375.6
Debt, net of unamortized discount of		2,886.6		2,907.7
$105.6 and $111.1
Deferred income		32.4		33.6
Deferred income taxes		409.0		391.0
Other liabilities		93.2		73.6
Stockholders’ equity		1,895.0		1,845.7

	$	5,876.7	$	5,760.0

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)


	June 30,			December 31,			2010
		2011
Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment	$	1,184.6		$	1,168.7
Accumulated depreciation		(702.4	)		(677.3	)

		482.2			491.4

Leasing:
Wholly-owned subsidiaries:
Machinery and other		9.0			38.2
Equipment on lease		3,412.6			3,249.8
Accumulated depreciation		(342.7	)		(322.6	)

		3,078.9			2,965.4

TRIP Holdings:
Equipment on lease		1,273.8			1,282.1
Accumulated depreciation		(107.2	)		(90.3	)

		1,166.6			1,191.8

Net deferred profit on railcars sold to the Leasing Group:
Sold to wholly-owned subsidiaries		(348.9	)		(340.4	)
Sold to TRIP Holdings		(192.4	)		(196.2	)

		(541.3	)		(536.6	)

	$	4,186.4		$	4,112.0

Leasing fleet information:
Fleet size:
Wholly-owned subsidiaries		53,700			51,910
TRIP Holdings		14,605			14,700
Fleet utilization:
Wholly-owned subsidiaries		99.3	%		99.3	%
TRIP Holdings		99.9	%		99.9	%

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)


	June 30,			December 31,
	2011			2010
Debt
Corporate/Manufacturing – Recourse:
Revolving credit facility	$	—		$	—
Convertible subordinated notes		450.0			450.0
Less: unamortized discount		(105.6	)		(111.1	)

		344.4			338.9
Other		4.9			2.8

		349.3			341.7

Leasing:
Wholly-owned subsidiaries:
Recourse:
Capital lease obligations		49.9			51.2
Term loan		56.1			57.4

		106.0			108.6

Non-recourse:
Secured railcar equipment notes		859.8			879.5
Warehouse facility		130.0			80.2
Promissory notes		478.2			493.8

		1,468.0			1,453.5

TRIP Holdings — Non-recourse:
Warehouse loan ⁽¹⁾		963.3			1,003.9

	$	2,886.6		$	2,907.7

(1)

On July 6, 2011, TRIP Holdings and its newly-formed subsidiary, TRIP Rail Master Funding LLC, issued $1,032.0 million in new debt and repaid all of the outstanding borrowings of the TRIP Holdings Warehouse Loan.

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)


	June 30,			December 31, 2010
	2011
Leasing Debt Summary
Total Recourse Debt	$	106.0		$	108.6
Total Non-Recourse Debt		2,431.3			2,457.4

	$	2,537.3		$	2,566.0

Total Leasing Debt
Wholly-owned subsidiaries	$	1,574.0		$	1,562.1
TRIP Holdings⁽¹⁾		963.3			1,003.9

	$	2,537.3		$	2,566.0

Equipment on Lease⁽²⁾
Wholly-owned subsidiaries	$	3,078.9		$	2,965.4
TRIP Holdings		1,166.6			1,191.8

	$	4,245.5		$	4,157.2

Total Leasing Debt as a % of Equipment on Lease
Wholly-owned subsidiaries		51.1	%		52.7	%
TRIP Holdings		82.6	%		84.2	%
Combined		59.8	%		61.7	%

(1)

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

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


	Three Months Ended June 30,
	2011		2010
Net income	$	31.6	$	21.1
Add:
Interest expense		43.8		45.3
Provision for income taxes		21.0		13.7
Depreciation and amortization expense		47.8		47.9

Earnings before interest expense, income taxes, and depreciation and amortization expense	$	144.2	$	128.0


	Six Months Ended June 30,
	2011		2010
Net income	$	57.2	$	25.4
Add:
Interest expense		88.3		91.0
Provision for income taxes		37.2		14.3
Depreciation and amortization expense		95.4		96.0

Earnings before interest expense, income taxes, and depreciation and amortization expense	$	278.1	$	226.7

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Gail Peck
Treasurer
July 27, 2011

Thank you, Beth. Good morning from Dallas, Texas. Welcome to the Trinity Industries’ second quarter 2011 results conference call. I’m Gail Peck, Treasurer of Trinity. Thank you for joining us today.

Following the introduction you will hear from Tim Wallace our Chairman, Chief Executive Officer and President. After Tim, our business group leaders will provide overviews of the businesses within their respective groups. Our speakers are:

•

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

•

Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group; and

•

Bill McWhirter, Senior Vice President and Group President of the Construction Products and Inland Barge Groups

Following their comments, James Perry, our Senior Vice President and Chief Financial Officer, will provide the financial summary and guidance. We will then move to the Q&A session. Mary Henderson, our Vice President and Chief Accounting Officer, is also in the room with us today. I will now turn the call over to Tim Wallace for his comments.

That concludes today’s conference call. A replay of this call will be available after one o’clock eastern standard time today through midnight on August 3^rd, 2011. The access number is (402) 220-0119. Also the replay will be available on the website located at www.trin.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, Chief Executive Officer, and President
July 27, 2011

Our businesses continue to confront a variety of scenarios. We anticipate that each quarter will have its own unique challenges and opportunities.

I am very pleased with the recent debt refinancing in our railcar leasing business. We were successful in obtaining long term financing for TRIP Holdings, our majority owned railcar leasing subsidiary. James will provide more information about this transaction during his comments.

Demand for railcars in North America remained strong during the 2nd quarter. I am pleased that our railcar business significantly increased its order backlog during the 2^nd quarter. Our railcar manufacturing facilities are ramping up production according to the railcar delivery schedules we described in our first quarter conference call.

Our railcar leasing business is continuing to see strong demand for railcars. During high demand periods, this business is able to obtain better lease rates and extended lease terms.

Our barge business increased its order backlog during the 2^nd quarter. Our barge facility in Missouri that was damaged by severe flooding in May is now well underway towards a full recovery. I am very pleased by the way our personnel responded to the challenges associated with the flood.

Our structural wind towers business has been in the process of switching its production lines to accommodate a change in product mix towards larger wind towers. We are experiencing additional costs associated with this transition. As the wind energy industry continues to evolve, we expect our customers will enhance their designs to obtain more energy-efficient models. We view our flexibility and our other core competencies as differentiators which reinforce our position as a market leader for our wind tower customers.

Our highway products businesses are continuing to build momentum as they normally do during the construction season. We expect levels of uncertainty to surface as our political leaders work through federal highway spending legislation. Our businesses that rely on highway funding are prepared to respond to shifts in demand for their products.

In summary, we are a very flexible company and will continue to adjust as the business climate shifts and demand fluctuates for our products and services. Our overall performance reflects the talents and hard work of our people; the diversification of our businesses; our emphasis on operational excellence; and the strength of our market leadership positions. We are fortunate to have a highly-seasoned group of employees who are extremely capable.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Steve Menzies
Senior Vice President and Group President
Rail and Railcar Leasing Groups
July 27, 2011

Second quarter operating results of the Rail Group and Leasing Group reflect increased railcar production and improved operating performance amid strong railcar demand. Our Rail Group posted a 66% increase in operating profit while shipping approximately 39% more new railcars during the 2nd quarter compared to the 1st quarter of 2011. Our railcar order backlog increased to its highest level since the 2nd quarter of 2008. Our Leasing Group experienced a 21% increase in operating profit compared to the 2^nd quarter 2010 due to increased utilization, lower fleet maintenance expenses and profit from lease fleet sales. Lease rates and renewal trends continue to strengthen while our lease fleet continues to grow.

Railcar demand, during the past several quarters, and current order inquiries have been strong. Railcars serving shale oil production and natural gas fracking expansion are in high demand, as are railcars serving the chemical and petrochemical industries. These industries are benefiting from abundant low-priced natural gas feedstock encouraging North American production expansion. We are also seeing strong demand for railcars that transport fertilizers, minerals and agricultural products as export shipments of these commodities expand. Demand for railcars that serve the lumber, paper and coal industries continues to be weak. The overhang of idle railcars in North America is still declining with some railcar types in tight supply.

During the 2nd quarter, the North American railcar manufacturing industry received orders to build 16,900 new railcars while delivering approximately 10,600 railcars. The industry backlog now stands at more than 57,300 railcars. TrinityRail received orders for approximately 7,860 new railcars during the 2nd quarter while delivering approximately 3,115 railcars bringing our year to date delivery total to 5,355. Our 2nd quarter orders were from industrial shippers, railroads and third party lessors. TrinityRail’s railcar production backlog was approximately 27,240 railcars at the end of the 2nd quarter up 21% from the end of the 1st quarter. Approximately 13% of the units in our production backlog are for customers of our leasing business. Based upon our backlog and current new railcar inquiry levels, we project a further increase in railcar production during the 3rd and 4th quarters. For the year 2011, we are projecting delivery of between 13,800-14,200 new railcars. As a point of comparison, we delivered 4,750 railcars in 2010 and slightly more than 9,100 railcars in 2009.

We were successful at securing orders during the 2nd quarter that fit very well with our production plans. We continue to focus on orders that optimize production at our facilities currently in operation, minimize line changeovers and reflect stronger pricing levels. Our 2^nd quarter orders should position us to attain increased operating leverage. However, we are uncertain as to the precise timing of efficiency improvements. Hiring, training and retaining skilled labor for such a steep ramp-up in production is challenging. The length of time required to bring our labor force up to speed will impact the timing and scope of our production efficiencies.

Component supply, while tight, has not, thus far, impeded our ability to meet delivery commitments to our customers. We appreciate the responsiveness and support of our key suppliers as we ramp-up production. Our success in maintaining our supply chain reflects the effectiveness of our forecasting and the close working relationship we enjoy with key suppliers through long term supply agreements. Our strong supply chain relationships enhance our flexibility to bring on additional railcar production when market conditions support sustainable demand and strong pricing levels.

We added 900 new railcars to our lease portfolio during the 2nd quarter bringing our wholly-owned lease fleet to more than 53,700 railcars, a 5.4% increase compared to the 2nd quarter 2010. Our lease fleet utilization at the end of the 2nd quarter 2011 was 99.3%. Our average remaining lease term remained at 3.4 years. The average age of railcars in the fleet was 6.3 years. The TRIP lease fleet totals 14,605 railcars operating at 99.9% utilization. As a reminder, Trinity owns 57% of TRIP and manages the portfolio.

As I mentioned earlier, lease renewal trends are favorable. A high percentage of our lessees are renewing their expiring contacts, therefore lowering our remarketing expenses. Renewal rates are also showing [strong] increases. In the near term, we continue to focus on obtaining longer lease terms as we now have the opportunity to re-price assets in a strong lease renewal market. An increase in our fleet average remaining lease term will take time as we only renew a small percentage of our lease fleet each quarter. Higher new railcar prices driven by increased demand and rising steel costs, are helping to raise the “ceiling” on lease rates for existing railcars thus supporting stronger lease renewal trends.

In summary, current railcar market conditions remain favorable for improved lease fleet returns and increased railcar production. Our operations team is highly focused on maximizing our operating leverage and sustaining production efficiencies. We will open additional railcar production as sustainable demand prescribes. We expect to continue to grow our lease fleet to meet customer needs as returns support additional fleet investment.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Antonio Carrillo
Senior Vice President and Group President
Energy Equipment Group
July 27, 2011

The wind industry continues to face a number of issues including low natural gas prices, transmission constraints and uncertainty about the extension of the production tax credit. To make wind energy more competitive, our customers are increasing the energy output of their turbines. One way to do this is by using taller wind towers.

Beginning in May and throughout June, some of our facilities began transitioning our production lines to manufacture 100-meter as opposed to 80-meter towers. The change created a steep learning curve that resulted in operational inefficiencies greater than we anticipated. The impact of this was reflected in our operating margins for the second quarter and will continue through at least the third quarter. At this time, it is difficult to precisely predict the point at which we will get past this learning curve.

I see positive momentum occurring in this area. I am confident that our people will overcome these challenges.

In summary....Wind energy technology is evolving rapidly. At this point, we are committed to working closely with our customers as they develop more efficient models. As a result, there may be brief periods of time when we have to make quick transitions within our manufacturing operations to support our customer’s competitive positioning. We view our flexibility and competencies in this area as strategic differentiators.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of William McWhirter,
Senior Vice President and Group President
Construction Products and Inland Barge Groups
July 27, 2011

Our Construction Products Group had a good second quarter. The segment produced a profit of $16.1 million for the quarter compared to $17.7 million during the same quarter a year ago. The quarter last year included $2.8 million of profits generated by our asphalt business, which we divested in August of 2010.

During the 2nd quarter, we made a small acquisition in our Highway business. Additionally, a few weeks ago we acquired a small galvanizing business located here in Texas. These acquisitions are part of an overall strategy to leverage our competencies and expand our construction products segment. The two acquisitions will increase revenue by approximately $30 million dollars per year.

Our concrete business continues to be challenged by low demand for residential and commercial buildings. We have adjusted our portfolio of ready mix assets to achieve the best results possible in the current market. Our Highway business is continuing to perform well during the peak construction season.

The flooding of our plant in Missouri was worse than we had estimated. Flood waters rose to seven feet in the plant, resulting in lost production for seven weeks. We are currently running at about 50% of planned production and expect to fully recover sometime in September. Our people have done a great job getting us to this point in a relatively short period of time.

During the quarter, we signed $151 million in new barge orders, increasing our backlog to $494 million dollars as compared to $350 million a year ago. Recent market discussions with our customers are encouraging. The barge movement of chemicals, coal and grains continues to be strong.

Trinity Industries, Inc.
Earnings Release Conference Call
Comments of James E. Perry
Senior Vice President and Chief Financial Officer
July 27, 2011

My comments relate primarily to the second quarter of 2011. We will file our form 10-Q later today. For the second quarter of 2011, Trinity reported earnings of 37 cents per common diluted share, a more than 60% improvement over the 23 cents per common diluted share that we earned in the second quarter of 2010.

Revenues for the second quarter of 2011 increased to $711 million compared to $543 million in the same quarter last year. Trinity’s EBITDA during the second quarter increased to $144 million from $128 million in the same quarter of 2010. The reconciliation of EBITDA was provided yesterday in our press release.

Included in our results for the second quarter of 2011 were $8.4 million in costs, net of estimated insurance recoveries, associated with the flood at our Missouri barge facility. As Bill mentioned, we have resumed operations and expect to fully recover at this facility in September. We were able to partially offset the second quarter impact with $4.0 million of insurance proceeds related to last year’s flood at our Tennessee barge facility as that claim process continues.

In early July, we completed the refinancing of our TRIP warehouse loan. The refinancing included $857 million of medium and long-term asset-backed securitized debt. We are very pleased with the terms of the transaction, which was well received by the capital markets and repositions TRIP for future growth. The refinancing also included $175 million of three-year Senior Secured Notes, of which Trinity holds $112 million.

At June 30th, our balance of unrestricted cash and short-term marketable securities totaled $299 million. When combined with available capacity under our corporate revolver and Trinity’s leasing warehouse facility, our liquidity position stood at approximately $1 billion at the end of the second quarter.

For the third quarter of 2011, we expect earnings per common diluted share for the Company to be between 32 and 37 cents. We expect earnings per common diluted share of between $1.35 and $1.45 for the full year 2011.

We anticipate that the Rail Group will report revenues of between $360 and $380 million with an operating margin of between 5% and 7% for the third quarter of 2011 as the businesses within this group continue to ramp up production to meet demand. We expect deliveries of railcars to our leasing company will result in a third quarter elimination of approximately $100 to $110 million in consolidated revenues, and between 6 and 8 cents per diluted share. For the full year, we expect to deliver railcars to our lease fleet with a value of approximately $330 – $350 million.

Inland Barge revenues are expected to be between $130 and $140 million in the third quarter with an operating margin in the range of 13% to 15% as this business ramps back up from the flood in Missouri. Revenues for the Energy Equipment Group are expected to be approximately $125 to $135 million in the third quarter with margins of between 2% and 3%, in large part due to anticipated learning curve costs associated with building larger wind towers.

Our earnings guidance also includes a step up in interest expense related to the TRIP refinancing, which will be realized for the first time during the third quarter. We anticipate interest expense on a consolidated basis to increase approximately $5 million per quarter from prior levels, after eliminating interest from the amounts owed on the $112 million of Senior Secured Notes held by Trinity. Our previous guidance incorporated this additional level of interest expense; however, we expect to incur an estimated additional one-time expense in the third quarter of approximately 3 cents per share related to the refinancing that was not included in prior guidance. On a consolidated basis, we expect TRIP to be slightly accretive to Trinity’s earnings beginning in the fourth quarter of 2011.

Where we fall within our ranges of our earnings guidance will depend on a number of factors, including: the level of operating leverage we achieve as our rail businesses ramp up production in response to increased demand; the impact of product mix changes in our wind towers business; the impact of weather conditions on our Construction Products businesses; and the rate of recovery from the flood at our Missouri barge facility. Our operator will now prepare us 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.

July 27, 2011	By:	James E. Perry

		Name: James E. Perry
		Title: Senior Vice President and Chief Financial Officer


Exhibit No.		Description

99.1		News Release dated July 26, 2011 with respect to the operating results for the three and six month periods ended June 30, 2011.
99.2		Conference call script of July 27, 2011 of Gail M. Peck, Treasurer.
99.3		Conference call script of July 27, 2011 of Timothy R. Wallace, Chairman, Chief Executive Officer, and President.
99.4		Conference call script of July 27, 2011 of D. Stephen Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups.
99.5		Conference call script of July 27, 2011 of Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group.
99.6		Conference call script of July 27, 2011 of William A. McWhirter II, Senior Vice President and Group President of the Construction Products and Inland Barge Groups.
99.7		Conference call script of July 27, 2011 of James E. Perry, Senior Vice President and Chief Financial Officer.


Date of Report (Date of Earliest Event Reported):		July 26, 2011


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