Genesee & Wyoming Reports Traffic for September 2016 and the Third Quarter of 2016

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for September 2016 and the third quarter of 2016.

G&W’s traffic in September 2016 was 244,796 carloads, a decrease of 9,498 carloads, or 3.7%, compared with September 2015.

G&W’s traffic in the third quarter of 2016 was 739,814 carloads, a decrease of 32,836 carloads, or 4.2%, compared with the third quarter of 2015.

The table below sets forth summary total carloads by segment for September 2016 and September 2015.

September 2016 Highlights by Segment

• North American Operations: Traffic in September 2016 was 132,329 carloads, a decrease of 3.9% compared with September 2015. The decrease was primarily due to reduced coal & coke, pulp & paper and chemicals & plastics traffic.
• Australian Operations: Traffic in September 2016 was 14,084 carloads, a decrease of 4.8% compared with September 2015. The decrease was primarily due to reduced metallic ores traffic.
• U.K./European Operations: Traffic in September 2016 was 98,383 carloads, a decrease of 3.4% compared with September 2015. The decrease was primarily due to reduced intermodal and coal & coke traffic.

The table below sets forth North American Operations carload information for September 2016 and September 2015 by commodity group.

• North American Operations traffic decreased 5,336 carloads, or 3.9%.
• Coal & coke traffic decreased 3,153 carloads, or 13.1%, primarily due to decreased shipments of utility coal in G&W’s Central and Northeast regions.
• Pulp & paper traffic decreased 1,636 carloads, or 11.0%, primarily due to decreased shipments in the Southern, Northeast and Canada regions.
• Chemicals & plastic traffic decreased 1,187 carloads, or 8.1%, with decreased shipments across most regions.
• All remaining traffic increased by a net 640 carloads.

The table below sets forth Australian Operations carload information for September 2016 and September 2015 by commodity group.

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from the previously announced closure of a manganese mine in 2015, partially offset by the short-term re-opening of an iron ore mine in 2016.

The table below sets forth U.K./European Operations carload information for September 2016 and September 2015 by commodity group.

• U.K./European Operations traffic decreased 3,449 carloads, or 3.4%.
• Intermodal traffic decreased 2,309 carloads, or 2.8%, primarily due to congestion at the Port of Felixstowe in the U.K.
• Coal & coke traffic decreased 2,185 carloads, or 40.0%, primarily due to decreased shipments in the U.K. and Poland.
• All remaining traffic increased by a net 1,045 carloads.

Third Quarter of 2016 Traffic

The table below sets forth summary total carloads by segment for the third quarter of 2016 and the third quarter of 2015.

The table below sets forth North American Operations carload information for the third quarter of 2016 and the third quarter of 2015 by commodity group.

The table below sets forth Australian Operations carload information for the third quarter of 2016 and the third quarter of 2015 by commodity group.

The table below sets forth U.K./European Operations carload information for the third quarter of 2016 and the third quarter of 2015 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, income from operations or net income.

G&W’s three reportable segments are summarized as follows:

• The North American Operations segment is comprised of eight operating regions in the U.S. and Canada. This segment represents approximately 60% of G&W’s total operating revenues and approximately 80% of G&W’s total income from operations.
• The Australian Operations segment is comprised of operations in South Australia, the Northern Territory and New South Wales. This segment represents approximately 10% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.
• The U.K./European Operations segment is comprised of operations in the U.K. and continental Europe. This segment represents approximately 30% of G&W’s total operating revenues and approximately 10% of G&W’s total income from operations.

About G&W

Genesee & Wyoming owns or leases 121 freight railroads worldwide that are organized in 10 operating regions with approximately 7,200 employees and more than 2,800 customers.

• G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
• G&W’s U.K./Europe Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

For more information, visit gwrr.com.

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