We operate in three reportable segments: manufacturing; maintenance services; and Rental and management services. Our segments are operationally integrated. The Manufacturing segment, which currently operates from facilities located in the
In Q1 2022, we renamed two of our reportable segments to better highlight the nature of the customer solutions it offers and the markets in which it operates. The new names of our segments to be presented are Manufacturing (unchanged), Maintenance Services (formerly Wheels, Repair & Parts) and Leasing & Management Services (formerly Leasing & Services). The name changes have no impact on our organization’s reporting structure or previously published financial information. Separately, effective
We identify three general trends impacting our business today, all of which we believe are reflected in our results for the six months ended
An increase in the price and shortage of certain materials and components;
Shipping and transportation delays;
Shortages of skilled labour;
Risk of inflation, currency volatility and rising interest rates.
As described in Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended
We believe we have the management expertise and are well positioned to meet the immediate challenges of increasing production rates safely amid emerging COVID variants and geopolitical concerns, while managing the continuity of workforce and supply chain. Despite the challenging operating environment, we achieved the following achievements in the first half of 2022 as we navigate the recovery phase:
Revenue increased by
Obtained new orders for 14,800 railcars worth approximately
in the six months ended
Increase in our backlog to an estimated value of
Growing our global workforce by approximately 20% in a challenging labor market to support higher activity levels.
Our backlog remains strong with railcar deliveries through 2024 and ocean deliveries through 2023. Our railcar backlog was 32,100 units with an estimated value of
Our railcar and vessel backlog is not necessarily indicative of future operating results. Some pending orders are subject to customary documentation and completion of conditions. Customers may attempt to cancel or modify pending orders. Historically, there has been little variation between the quantity ordered and the quantity actually delivered, although the delivery schedule may change from time to time.
Three months completed
Revenue, cost of revenue, margin and operating profit (loss) (operating profit or loss) shown below include amounts from external parties and exclude intersegment activity which is eliminated upon consolidation.
Three Months Ended February 28, (in millions, except per share amounts) 2022 2021
$ 555.7 $ 201.5Maintenance Services 86.6 71.6 Leasing & Management Services 40.5 22.5 682.8 295.6 Cost of revenue: Manufacturing 535.0 201.8 Maintenance Services 81.7 66.7 Leasing & Management Services 11.3 9.5 628.0 278.0
Manufacturing 20.7 (0.3 ) Maintenance Services 4.9 4.9 Leasing & Management Services 29.2 13.0 54.8 17.6 Selling and administrative 54.7 43.4 Net gain on disposition of equipment (25.1 ) (0.1 ) Earnings (loss) from operations 25.2 (25.7 ) Interest and foreign exchange 11.8 9.6 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates 13.4 (35.3 ) Income tax (expense) benefit (3.2 ) 21.8
Profit (loss) before profit (loss) of
unconsolidated affiliates 10.2 (13.5 ) Earnings (loss) from unconsolidated affiliates 1.0 (0.4 ) Net earnings (loss) 11.2 (13.9 ) Net loss attributable to noncontrolling interest 1.6 4.8
Net income (loss) attributable to Greenbrier
Diluted earnings (loss) per common share
$ 0.38 $ (0.28 )Performance for our segments is evaluated based on operating profit or loss. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business model. Management does not allocate Interest and foreign exchange or Income tax (expense) benefit for either external or internal reporting purposes. Three Months Ended February 28, (in millions) 2022 2021 Operating profit (loss): Manufacturing $ 1.8 $ (17.8 )Maintenance Services 2.9 2.4 Leasing & Management Services 47.6 7.0 Corporate (27.1 ) (17.3 ) $ 25.2 $ (25.7 )28
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