Trinity's 3Q profit soars but revenue falls short
DALLAS (AP) — Trinity Industries Inc.'s shares fell in after-hours trading Wednesday after the industrial manufacturer said that manufacturing investments would hurt its performance for the remainder of the year.
The Dallas-based company's net income nearly doubled to $63.2 million, or 80 cents per share, for the period that ended Sept. 30. That is up from $31.9 million, or 40 cents per share, in the third quarter last year.
Trinity's revenue increased 19 percent to $937.5 million from $791.1 million. It reported gains in its rail, inland barge and energy equipment units but a decline in its construction products group.
Analysts polled by FactSet were expecting the company to earn 79 cents per share on revenue of $996.1 million.
Trinity CEO Timothy Wallace said the company's portfolio of businesses, particularly those serving North American oil, gas and chemical industries, performed well. However, the company had to adjust its manufacturing to meet the growing demand from these industries. He said that required an increased investment and caused operating inefficiencies that will hurt the company's performance for the remainder of the year.
Trinity expects to earn between 78 and 85 cents per share for the fourth quarter, including 4 to 5 cents per share of costs to increase its production capacity. Analysts were expecting the company to earn 79 cents per share.
The company also said Wednesday that it expects to earn between $3.08 and $3.15 per share for the year; analysts were expecting Trinity to earn $3.07 per share.
Trinity's shares fell 23 cents to close regular trading at $31.81. The news sent its shares down $2.16, nearly 7 percent, to $29.65 in after-hours trading.