The Greenbrier Companies, Inc. (GBX) 8-K Greenbrier reports record EPS of $2.48 on revenues of $954 million for fiscal 2006; fourth quarter EPS is $.76 on revenues of $265 million

Exhibit 99.1

For release:October 31, 2006, 6:00 am EST Contact: Mark Rittenbaum
503-684-7000

Greenbrier reports record EPS of $2.48 on revenues of $954 million for fiscal 2006;
fourth quarter EPS is $.76 on revenues of $265 million

     Lake Oswego, Oregon, October 31, 2006 —The Greenbrier Companies [NYSE:GBX] today reported results for its fiscal fourth quarter and fiscal year ended August 31, 2006.

Financial Highlights

Fiscal 2006:

• Net earnings were a record $39.6 million, or $2.48 per diluted share, up 33% from $29.8 million or $1.92 per diluted share in fiscal 2005.

• Record EBITDA for fiscal 2006 was $112 million, up 27% over 2005 EBITDA of $88 million.

• Total new railcar deliveries of 11,400 in fiscal 2006, compared to 13,200 units in fiscal 2005.

• Net earnings for the year include a tax benefit of $0.7 million, or $.04 per diluted share, for two tax items. This tax benefit consists of:

• (i) a charge in the third quarter of $3.0 million after tax, or $.19 per diluted share, for settlement of a tax audit in 2006, and

• (ii) a benefit in the fourth quarter of $3.7 million, or $.23 per diluted share, for a realization of a deferred tax asset relating to net operating loss carry-forwards at the Company’s Mexican subsidiary.

• Growing backlog of 14,700 units valued at $1.0 billion on August 31, 2006, compared with 9,600 units valued at $550 million on August 31, 2005, and 13,100 units at $760 million on August 31, 2004.

Fourth Quarter:

• Net earnings were $12.3 million, or $.76 per diluted share — up 16% from the $10.6 million, or $.68 per diluted share in the fourth quarter of fiscal 2005.

• Net earnings for the quarter include a $3.7 million tax benefit, or $.23 per diluted share, for a realization of a deferred tax asset relating to net operating loss carry-forwards at the Company’s Mexican subsidiary.

• EBITDA was $25.8 million, compared to $29.0 million for the fourth quarter of fiscal 2005.

• New railcar deliveries were 3,200 units for the quarter, compared to 3,300 units for the fourth quarter of 2005.

Strategic Accomplishments:

• During 2006, the Company expanded its new railcar offerings into car types where future demand is expected to be strong. These car types include covered hopper cars, Auto-Max^®, automotive vehicle carrying railcars and mill gondola cars for scrap steel service.

• As the result of active portfolio management and growth initiatives, the Company enhanced the quality of its owned lease fleet, reducing the average car age from 22 years to 16 years while extending the average lease term to 3.3 years from 2.7 years as compared to a year ago. Lease fleet utilization was 97.2%.

• Subsequent to year end, the Company executed on three major strategic initiatives: 1) the acquisition of the assets of RailCar America; 2) an agreement to acquire the stock of Meridian Rail Services; and 3) the formation of a new joint venture, Greenbrier GIMSA, to build new freight cars in Mexico. These initiatives will: improve the Company’s competitive position in new railcar manufacturing; nearly triple the annual revenues of the Company’s railcar repair and refurbishment business, and reduce the overall cyclicality of its business, while further distinguishing the Company in the marketplace.

• The Company continued to strengthen its liquidity position by issuance of $100 million of convertible senior notes, $60 million add-on of senior unsecured notes, and a commitment for a new five-year, $275 million revolving credit facility.

Fourth Quarter Results:

     Revenues for the fourth quarter of fiscal 2006 were $265 million, flat with $265 million in the prior year’s fourth quarter. EBITDA was $25.8 million, or 9.7% of revenues for the quarter, compared to $29.0 million, or 10.9% of revenues in the prior year’s fourth quarter. Net earnings were $12.3 million, or $.76 per diluted share — up 16% from the $10.6 million, or $.68 per diluted share in the fourth quarter of fiscal 2005. The Company realized a $3.7 million tax benefit, or $.23 per diluted share, during the quarter for a realization of a deferred tax asset relating to net operating carry-forwards at its Mexican subsidiary.

     New railcar deliveries for the quarter of 3,200 units and gains on equipment sale of $0.3 million were both lower than previously anticipated. This was principally due to timing differences, as some lease syndication and equipment sales activities were deferred. As well, the growth of the lease fleet, and therefore production for the lease fleet, was higher than earlier guidance. New additions to the lease fleet for the year were nearly $120 million, compared to earlier expectations of $110 million of additions. These factors were mitigated in part by the continued expansion of manufacturing margins, as a result of operating leverage. The overall effect of these factors was to continue to grow the Company’s leasing operations and longer-term profitability, but in the short term reduce fourth quarter earnings. The Company expects its lease fleet expansion efforts will drive long-term profitability and contribute to stable earnings going forward, outweighing the short term effect of deferring revenues from Q4 2006 into future periods.

     In the Manufacturing segment, fourth quarter revenues were $242 million, compared to $241 million in the fourth quarter of 2005. Deliveries for the quarter were 3,200 units, compared to 3,300 units in prior comparable period. The revenue per unit increased due to a change in product mix. A higher percentage of conventional rather than intermodal railcars were shipped during the quarter, as

the Company continued to diversify its product offerings. Manufacturing margin for the quarter grew to 11.2% of revenues, compared to 10.4% of revenues in the fourth quarter of 2005, as margins continued to benefit from cost reduction efforts and efficiencies of long production runs.

     Revenues in the Leasing & Services segment were $23.4 million, compared to $24.4 million in the same quarter last year. Leasing & Services margin were 54.2% of revenues, compared to 56.5% of revenues in the same quarter last year. The slightly lower revenues and margins in the current quarter are due to lower gains on equipment sales of $0.3 million in the current quarter, compared to $2.5 million in the prior comparable period. After excluding gains on equipment sales for both periods, leasing and services revenues grew by $1.2 million, or 6%, and leasing and services margins grew from 51.6% to 53.3% of revenues.

Future Outlook:

     The Company anticipates revenues for fiscal 2007 in the range of $1.2 to $1.3 billion and earnings in the range of $3.10-$3.40 per diluted share. The principal drivers for this growth are anticipated to be from the RailCar America and Meridian acquisitions, along with improved operating performance in Europe. The Company expects this growth to be partially offset by lower gains on equipment sales from the Company’s lease fleet and a slightly high effective tax rate, due to the geographic mix of earnings in 2007. Financial performance from the Company’s TrentonWorks freight car manufacturing operation in Canada is expected to decline in 2007 compared to 2006, due to weaker markets for forest product railcars and the strong Canadian dollar.

     William A. Furman, president and chief executive officer, noted, “Fiscal 2006 was another very successful year for the Company, with our second consecutive year of record earnings and numerous strategic accomplishments. Over the past year, we have taken several steps to bolster our growth, increase our profitability and competitive positioning, and diversify the business.”

     Furman added, “As we enter fiscal 2007, we are excited about the prospects for the year. This optimism is driven by a combination of continued strength in railroad industry fundamentals, coupled with the Company’s enhanced competitive position, as the result of recent strategic initiatives.”

     Furman concluded, “In the near term, we will continue to focus on integrating our three recent strategic initiatives and realizing the synergies associated with them. We will also continue to selectively seek growth opportunities.”

     Mark Rittenbaum, senior vice president and treasurer, said, “We are pleased with our financial performance during the fourth quarter and the year as we continued to see gross margin expansion across all business lines. While deliveries for the quarter and gains on equipment sale were lower than previously anticipated, this was principally due to timing differences as some lease syndication and equipment sales activities were deferred. We also made more additions to the lease fleet for the year than expected. The net effect of these factors is positive as we continue to grow our leasing operations and long-term profitability. However, in the short-term these factors impacted our fourth quarter earnings. As we look at 2007, we are optimistic about the Company’s ability to continue to grow revenues and earnings, driven by many of our strategic initiatives.”

     The Greenbrier Companies (www.gbrx.com), headquartered in Lake Oswego, OR, is a leading supplier of transportation equipment and services to the railroad industry. The Company builds new railroad freight cars in its manufacturing facilities in the U.S., Canada, and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 30 locations (post Meridian acquisition) across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 135,000 railcars.

     “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release may contain forward-looking statements. Greenbrier uses words such as “anticipate,” “believe,” “plan,” “expect,” “future,” “intend” and similar expressions to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, actual future costs and the availability of materials and a trained workforce; steel price increases and scrap surcharges; changes in product mix and the mix between manufacturing and leasing & services segment; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment; all as may be discussed in more detail under the heading “Forward Looking Statements” on pages 3 through 4 of Part I of our Annual Report on Form 10-K for the fiscal year ended August 31, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.

     EBITDA is not a financial measure under GAAP. We define EBITDA as earnings from operations before special charges, interest and foreign exchange, taxes, depreciation and amortization. We consider net cash provided by operating activities to be the most directly comparable GAAP financial measure. EBITDA is a liquidity measurement tool commonly used by rail supply companies and we use EBITDA in that fashion. You should not consider EBITDA in isolation or as a substitute for cash flow from operations or other cash flow statement data determined in accordance with GAAP. In addition, because EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

     The Greenbrier Companies will host a teleconference to discuss fourth quarter and fiscal year end results. Teleconference details are as follows:

Tuesday, October 31, 2006
7:30 am Pacific Standard Time
Phone #: 630-395-0143, Password: “Greenbrier”
Real-time Audio Access: (“Newsroom” at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time. Following the call, a replay will be available on the same website for 30 days. Telephone replay will be available through November 18, 2006 at 203-369-1424.

THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Balance Sheets
August 31,

(In thousands, except per share amounts)	2006		2005
Assets
Cash and cash equivalents	$	142,894	$	73,204
Restricted cash		2,056		93
Accounts and notes receivable		115,565		122,957
Inventories		163,151		121,698
Railcars held for sale		35,216		59,421
Investment in direct finance leases		6,511		9,974
Equipment on operating leases		301,009		183,155
Property, plant and equipment		80,034		73,203
Other		30,878		27,502
	$	877,314	$	671,207
Liabilities and Stockholders’ Equity
Revolving notes	$	22,429	$	12,453
Accounts payable and accrued liabilities		204,793		195,258
Participation		11,453		21,900
Deferred income tax		37,472		31,629
Deferred revenue		17,481		6,910
Notes payable		362,314		214,635
Subordinated debt		2,091		8,617
Subsidiary shares subject to mandatory redemption		—		3,746
Stockholders’ equity		219,281		176,059
	$	877,314	$	671,207

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

Years ended August 31,

(In thousands, except per share amounts)	2006			2005			2004
Revenue
Manufacturing	$	851,289		$	941,161		$	653,234
Leasing & services		102,534			83,061			76,217
		953,823			1,024,222			729,451
Cost of revenue
Manufacturing		754,421			857,950			595,026
Leasing & services		42,023			41,099			42,241
		796,444			899,049			637,267
Margin		157,379			125,173			92,184
Other costs
Selling and administrative expense		70,918			57,425			48,288
Interest and foreign exchange		25,396			14,835			11,468
Special charges		—			2,913			1,234
		96,314			75,173			60,990
Earnings before income tax and equity in unconsolidated subsidiaries		61,065			50,000			31,194
Income tax expense		(21,698	)		(19,911	)		(9,119	)
Earnings before equity in unconsolidated subsidiaries		39,367			30,089			22,075
Equity in earnings (loss) of unconsolidated subsidiaries		169			(267	)		(2,036	)
Earnings from continuing operations		39,536			29,822			20,039
Earnings from discontinued operations (net of tax)		62			—			739
Net earnings	$	39,598		$	29,822		$	20,778
Basic earnings per common share:
Continuing operations	$	2.51		$	1.99		$	1.38
Discontinued operations		—			—			0.05
	$	2.51		$	1.99		$	1.43
Diluted earnings per common share:
Continuing operations	$	2.48		$	1.92		$	1.32
Discontinued operations		—			—			0.05
	$	2.48		$	1.92		$	1.37
Weighted average common shares:
Basic		15,751			15,000			14,569
Diluted		15,937			15,560			15,199

THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Cash Flows
Years ended August 31,

(In thousands)	2006			2005			2004
Cash flows from operating activities:
Net earnings	$	39,598		$	29,822		$	20,778
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Earnings from discontinued operations		(62	)		—			(739	)
Deferred income taxes		5,893			5,807			9,646
Tax benefit of stock options exercised		—			2,393			—
Depreciation and amortization		25,253			22,939			20,840
Gain on sales of equipment		(10,948	)		(6,797	)		(629	)
Special charges		—			—			1,234
Other		278			651			1,332
Decrease (increase) in assets:
Accounts and notes receivable		8,948			(32,328	)		(37,786	)
Inventories		(37,517	)		15,403			(22,355	)
Railcars held for sale		156			(38,495	)		14,097
Other		2,577			(5,167	)		2,940
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		5,487			3			30,956
Participation		(10,447	)		(15,207	)		(18,794	)
Deferred revenue		10,326			4,285			(37,495	)
Net cash provided by (used in) operating activities		39,542			(16,691	)		(15,975	)
Cash flows from investing activities:
Principal payments received under direct finance leases		2,048			5,733			9,461
Proceeds from sales of equipment		28,863			32,528			16,217
Investment in and advances to unconsolidated subsidiaries		550			92			(2,240	)
Acquisition of joint venture interest		—			8,435			—
Decrease (increase) in restricted cash		(1,958	)		1,007			4,757
Capital expenditures		(140,569	)		(69,123	)		(42,959	)
Net cash used in investing activities		(111,066	)		(21,328	)		(14,764	)
Cash flows from financing activities:
Changes in revolving notes		8,965			2,514			(14,030	)
Proceeds from notes payable		154,567			169,752			—
Repayments of notes payable		(13,191	)		(67,691	)		(21,539	)
Repayment of subordinated debt		(6,526	)		(6,325	)		(5,979	)
Dividends		(5,042	)		(3,889	)		(889	)
Net proceeds from equity offering		—			127,462			—
Repurchase and retirement of stock		—			(127,538	)		—
Stock options exercised and restricted stock awards		5,757			3,286			6,093
Excess tax benefit of stock options exercised		2,600			—			—
Purchase subsidiary’s shares subject to mandatory redemption		(4,636	)		—			(1,277	)
Net cash provided by (used in) financing activities		142,494			97,571			(37,621	)
Effect of exchange rate changes		(1,280	)		1,542			3,172
Increase (decrease) in cash and cash equivalents		69,690			61,094			(65,188	)
Cash and cash equivalents
Beginning of period		73,204			12,110			77,298
End of period	$	142,894		$	73,204		$	12,110

THE GREENBRIER COMPANIES, INC.

Supplemental Disclosure
Reconciliation of Net Cash Provided by (used in) Operating Activities to EBITDA
(In thousands, unaudited)

	Year ending August 31,
	2006			2005
Net cash (used in) provided by operating activities	$	39,542		$	(16,691	)
Earnings from discontinued operations		62			—
Changes in working capital		20,470			71,506
Deferred income taxes		(5,893	)		(5,807	)
Tax benefit of stock options exercised		—			(2,393	)
Gain on sales of equipment		10,948			6,797
Other		(278	)		(651	)
Income tax expense		21,698			19,911
Interest and foreign currency		25,396			14,835
EBITDA from continuing operations	$	111,945		$	87,507

	Three months ending
	August 31,			August 31,
	2006			2005
Net cash (used in) provided by operating activities	$	33,849		$	20,711
Earnings from discontinued operations		62			—
Changes in working capital		(12,769	)		(791	)
Deferred income taxes		(2,844	)		(5,128	)
Tax benefit of stock options exercised		—			(452	)
Gain on sales of equipment		342			2,497
Other		(219	)		(152	)
Income tax expense (benefit)		(568	)		7,078
Interest and foreign currency		7,990			5,196
EBITDA from continuing operations	$	25,843		$	28,959

¹ “EBITDA” (earnings from continuing operations before interest, taxes, depreciation and amortization) is a useful liquidity measurement tool commonly used by rail supply companies and Greenbrier. It should not be considered in isolation or as a substitute for cash flows from operating activities or cash flow statement data prepared in accordance with generally accepted accounting principles.

Supplemental Information
Quarterly Results of Operations (Unaudited)

     Operating results by quarter for 2006 are as follows:

(In thousands, except per share amounts)

	First			Second			Third			Fourth			Total
2006
Revenue
Manufacturing	$	164,596		$	208,922		$	236,052		$	241,719		$	851,289
Leasing & services		21,766			27,292			30,036			23,440			102,534
		186,362			236,214			266,088			265,159			953,823
Cost of revenue
Manufacturing		143,030			185,360			211,444			214,587			754,421
Leasing & services		10,439			10,671			10,172			10,741			42,023
		153,469			196,031			221,616			225,328			796,444
Margin		32,893			40,183			44,472			39,831			157,379
Other costs
Selling and administrative expense		15,541			17,092			17,896			20,389			70,918
Interest and foreign exchange		4,573			7,180			6,149			7,494			25,396
		20,114			24,272			24,045			27,883			96,314
Earnings before income tax and equity in unconsolidated subsidiaries		12,779			15,911			20,427			11,948			61,065
Income tax benefit (expense)		(4,934	)		(7,466	)		(9,866	)		568			(21,698	)
Equity in (loss) earnings of unconsolidated subsidiaries		172			118			119			(240	)		169
Earnings from continuing operations		8,017			8,563			10,680			12,276			39,536
Earnings from discontinued operations (net of tax)		—			—			—			62			62
Net earnings	$	8,017		$	8,563		$	10,680		$	12,338		$	39,598
Basic earnings per common share:
Continuing operations	$	.52		$	.55		$	.67		$	.77		$	2.51
Discontinued operations		—			—			—			—			—
	$	.52		$	.55		$	.67		$	.77		$	2.51
Diluted earnings per common share:
Continuing operations	$	.51		$	.54		$	.67		$	.76		$	2.48
Discontinued operations		—			—			—			—			—
	$	.51		$	.54		$	.67		$	.76		$	2.48

Quarterly Results of Operations (Unaudited)

     Operating results by quarter for 2005 are as follows:

(In thousands, except per share amounts)

	First			Second			Third			Fourth			Total
2005
Revenue
Manufacturing	$	200,397		$	233,808		$	266,090		$	240,866		$	941,161
Leasing & services		17,651			21,105			19,944			24,361			83,061
		218,048			254,913			286,034			265,227			1,024,222
Cost of revenue
Manufacturing		182,862			217,796			241,491			215,801			857,950
Leasing & services		10,380			10,570			9,561			10,588			41,099
		193,242			228,366			251,052			226,389			899,049
Margin		24,806			26,547			34,982			38,838			125,173
Other costs
Selling and administrative expense		12,072			14,044			15,276			16,033			57,425
Interest and foreign exchange		3,059			4,295			2,285			5,196			14,835
Special charges		—			—			2,913			—			2,913
		15,131			18,339			20,474			21,229			75,173
Earnings before income tax and equity in unconsolidated subsidiaries		9,675			8,208			14,508			17,609			50,000
Income tax benefit (expense)		(3,554	)		(3,397	)		(5,881	)		(7,079	)		(19,911	)
Equity in (loss) earnings of unconsolidated subsidiaries		(731	)		(9	)		417			56			(267	)
Net earnings	$	5,390		$	4,802		$	9,044		$	10,586		$	29,822
Basic earnings per common share	$	.36		$	.32		$	.60		$	.71		$	1.99
Diluted earnings per common share	$	.35		$	.31		$	.58		$	.68		$	1.92