Genesee & Wyoming Reports Traffic for December 2017

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for December 2017 and the fourth quarter of 2017.

G&W’s traffic in December 2017 was 255,199 carloads, a decrease of 15,344 carloads, or 5.7%, compared with December 2016. G&W’s same-railroad traffic in December 2017 was 254,700 carloads, a decrease of 15,843 carloads, or 5.9%, compared with December 2016.

G&W’s traffic in the fourth quarter of 2017 was 802,428 carloads, an increase of 35,878 carloads, or 4.7%, compared with the fourth quarter of 2016. G&W’s same-railroad traffic in the fourth quarter of 2017 was 740,816 carloads, a decrease of 25,734 carloads, or 3.4%, compared with the fourth quarter of 2016.

The table below sets forth summary total carloads by segment for December 2017 and December 2016.

December 2017 Highlights by Segment

• North American Operations: Traffic in December 2017 was 127,904 carloads, a decrease of 2.5% compared with December 2016, including carloads from the Heart of Georgia Railroad, Inc. (HOG), which was acquired on May 31, 2017. On a same-railroad basis, North American traffic decreased 2.8%, primarily due to decreased coal & coke and metals traffic.
• Australian Operations: Traffic in December 2017 was 47,465 carloads, a decrease of 10.8% compared with December 2016, primarily due to decreased coal & coke and agricultural products traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
• U.K./European Operations: Traffic in December 2017 was 79,830 carloads, a decrease of 7.4% compared with December 2016, primarily due to decreased intermodal traffic in the U.K. and Continental Europe and coal & coke traffic in the U.K., partially offset by increased minerals & stone traffic in the U.K. and Poland.

The table below sets forth North American Operations carload information for December 2017 and December 2016 by commodity group.

The following highlights relate to North American same-railroad traffic, excluding traffic from HOG, which was acquired on May 31, 2017.

• Coal & coke traffic decreased 2,231 carloads, or 10.8%, primarily due to decreased overhead shipments of utility coal in G&W’s Midwest Region.
• Metals traffic decreased 1,522 carloads, or 12.6%, primarily due to decreased shipments of scrap steel in G&W’s Southern and Northeast regions.
• All remaining traffic increased by a net 40 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for December 2017 and December 2016 by commodity group.

• Coal & coke traffic, which operates primarily under a take-or-pay contract structure, decreased 3,263 carloads, or 9.3%, largely due to industrial action at Hunter Valley coal mines.
• Agricultural products traffic decreased 2,391 carloads, or 42.5%, primarily due to a lower 2017-18 harvest in South Australia.
• All remaining traffic decreased by a net 81 carloads.

The table below sets forth U.K./European Operations carload information for December 2017 and December 2016 by commodity group.

• Intermodal traffic decreased 5,967 carloads, or 8.6%, primarily due to weaker shipments in the U.K. and Continental Europe.
• Coal & coke traffic decreased 3,304 carloads, or 69.6%, primarily due to decreased shipments in the U.K.
• Minerals & stone traffic increased 3,023 carloads, or 26.1%, primarily due to increased shipments in the U.K. and Poland.
• All remaining traffic decreased by a net 147 carloads.

Fourth Quarter of 2017 Traffic

The table below sets forth summary total carloads by segment for the fourth quarter of 2017 and the fourth quarter of 2016.

The table below sets forth North American Operations carload information for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

The table below sets forth U.K./European Operations carload information for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

Other

The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.

Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

About G&W

G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

• G&W’s seven North American regions serve 41 U.S. states and four Canadian provinces and include 115 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
• G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

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