The Greenbrier Companies, Inc. (GBX) 8-K Greenbrier Companies Reports Third Quarter Results

Exhibit 99.1

For release:July 8, 2008, 6:00 am EDT	Contact:	Mark Rittenbaum
		Ph: 503-684-7000

Greenbrier Companies Reports Third Quarter Results

Company earns $.49 per share on revenues of $382 million
Refurbishment & parts segment revenues grow 29% to $152 million

Lake Oswego, Oregon, July 8, 2008– The Greenbrier Companies [NYSE:GBX], a leading supplier of transportation equipment and services to the railroad industry, today reported financial results for its fiscal third quarter ended May 31, 2008.

Highlights

• Revenues for the quarter were $382 million, virtually flat with the prior year’s third quarter.

• Net earnings for the quarter were $8.1 million, or $.49 per diluted share, compared to net earnings of $13.0 million, or $.81 per diluted share, for the third quarter of 2007.

• EBITDA for the quarter was $34.5 million, or 9.0% of revenues.

• Refurbishment & parts revenues were $152.4 million, an increase of 29% or $34.2 million from $118.2 million in the third quarter of 2007.

• New railcar manufacturing backlog was 17,500 units, valued at $1.55 billion as of May 31, 2008, compared to 18,800 units valued at $1.64 billion as of February 29, 2008.

• New marine barge backlog was $158 million at May 31, 2008, compared to $114 million at February 29, 2008, as a result of orders for four barges received during the quarter.

Third Quarter Results:

     Revenues for the 2008 fiscal third quarter were $382.1 million, compared to $386.6 million in the prior year’s third quarter. EBITDA was $34.5 million, or 9.0% of revenues for the quarter, compared to $46.4 million, or 12.0% of revenues in the prior year’s third quarter. Net earnings were $8.1 million, or $.49 per diluted share for the quarter, compared to net earnings of $13.0 million, or $.81 per diluted share for the same period in 2007.

     New railcar manufacturing backlog was 17,500 units valued at $1.55 billion at May 31, 2008, compared to 18,800 units valued at $1.64 billion at February 29, 2008. Based on current production plans, approximately 1,400 units in the May 31, 2008 backlog are scheduled for delivery during the balance of fiscal 2008. Marine backlog was $158 million as of May 31, 2008, compared to $114 million as of February 29, 2008.

     William A. Furman, president and chief executive officer, said, “Financial performance improved during the quarter, driven largely by our non-manufacturing segments, and solid performance in marine manufacturing at our Gunderson facility in Portland, Oregon. Our strategy to diversify and expand our less cyclical, more stable marine manufacturing, refurbishment & parts, and leasing & services businesses continue to benefit the Company. Refurbishment & parts produced record results for the quarter. In combination with leasing & services and marine, these businesses will generate over $770 million of annual revenues, at current run rates. In addition to providing stability to revenue and earnings, these businesses provide a natural hedge to weaker demand for new railcars, as well as rising raw material costs, including higher steel prices, and scrap surcharges which are adversely affecting our new railcar operations.”

     Third quarter revenues for the manufacturing segment were $201.8 million, a decrease of $39.6 million from $241.4 million in the third quarter of 2007. New railcar deliveries for the quarter were 2,200 units compared to 3,000 units in the prior comparable period. Revenues per unit were comparable to the third quarter of 2007.

     Manufacturing gross margin for the quarter was .5% of segment revenues, compared to 8.4% of revenues in the third quarter of 2007. The decrease in margin was principally due to lower production rates, a less favorable product mix and pricing environment, rising raw material costs, and a loss contingency accrued on certain future railcar production.

     Due to increases in raw material costs on certain fixed price railcar contracts in backlog, our current estimated cost to complete some contracts is expected to exceed the contractual sale price. During the third quarter, $5.3 million was accrued for estimated loss contingencies. In addition, there are 1,000 cars in backlog for which a loss is not yet estimable, and a loss contingency has not yet been accrued. The Company is aggressively working to mitigate these exposures.

     Conversely, the Company’s refurbishment & parts and leasing & services businesses have benefited from rising commodity prices through increased revenues, higher residual values and enhanced margins.

Refurbishment & parts revenues were $152.4 million, an increase of $34.2 million from $118.2 million in the prior comparable period. This increase was due principally to acquisition-related growth, increases in parts and wheelset sales and favorable scrap prices. Margins during the quarter for this segment were 21.0% of revenues, compared to 18.5% in the prior comparable

period, as margins were favorably impacted by increases in scrap prices, a more favorable product mix and increased volumes. During the quarter, two refurbishment & parts acquisitions, with combined trailing 12 months revenues of about $100 million and EBITDA of about $16 million, were completed: American Allied Railway Equipment, a wheel services and railcar parts provider; and Roller Bearings Industries, a provider of reconditioned bearings used in the refurbishment of railcar wheelsets.

     The leasing & services segment includes results from the Company’s owned lease fleet of approximately 9,000 railcars and from fleet management services provided for approximately 138,000 railcars. Revenues for this segment were $27.9 million, up $0.9 million from $27.0 million in the same quarter last year. Leasing & services margin was 56.2% of segment revenues, compared to 58.0% of revenues in the same quarter last year. Leasing & services margin declined primarily due to lower interim rent on railcars held for sale, which has no associated cost of revenue.

     Mark Rittenbaum, executive vice president & chief financial officer, said, “The increased contribution from our marine, refurbishment & parts and leasing & services businesses improved overall gross margins and helped offset a decline in manufacturing segment margins. The manufacturing segment continues to suffer from an increasingly competitive new railcar environment, and rising raw material costs. Our tax rate for the quarter of 50.0% is down significantly from the 71.0% rate during the first half of the year, due in part to recent tax strategies. Near term financial focus remains on cost reductions consistent with the current macroeconomic trends, paying down post acquisition debt, and strategies to continue to reduce our effective tax rate.”

Business Outlook

     Furman concluded, “The long-term outlook for the rail industry remains bright, as market forces continue to favor rail. In the nearer term, we expect that our marine, refurbishment & parts, and leasing & services businesses will continue with their strong performance, while new railcar manufacturing will likely remain soft, due to macroeconomic forces. Greenbrier remains committed to delivering value to shareholders through its integrated business model, which builds on the Company’s core strengths of railcar and marine manufacturing and engineering, while providing diversification and reduced risk through various business cycles and economic conditions. Our near term operating focus is to integrate recent acquisitions, ensure the smooth start up of our tank car production line at GIMSA, and to continue to realize revenue and cost synergies from our integrated model.”

About Greenbrier

     Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry. The Company builds new railroad freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 39 locations 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 138,000 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, fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel price increases and scrap surcharges; changes in product mix and the mix between segments; 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 and risks related to car hire and residual values; difficulties associated with governmental regulation, including environmental liabilities; integration of current or future acquisitions; succession planning; all as may be discussed in more detail under the headings “Risk Factors” on page 10 of Part I , Item 1a and “Forward Looking Statements” on page 28 of Part II of our Annual Report on Form 10-K for the fiscal year ended August 31, 2007.  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 third quarter fiscal 2008 results. Teleconference details are as follows:

Tuesday, July 8, 2008
8:00 am Pacific Daylight Time
Phone #: 630-395-0143, Password: “Greenbrier”

Webcast Real-time Audio Access: (“Newsroom” at http://www.gbrx.com)

Please access the website 10 minutes prior to the start time. Following the call, a replay will be available on the same website. Telephone replay will be available through July 26, 2008 at 203-369-0494.

THE GREENBRIER COMPANIES, INC.     

Condensed Consolidated Balance Sheets
(In thousands, unaudited)

	May 31,			August 31,
	2008			2007
Assets
Cash and cash equivalents	$	—		$	20,808
Restricted cash		1,722			2,693
Accounts receivable		182,188			157,038
Inventories		239,760			194,883
Assets held for sale		57,895			42,903
Equipment on operating leases		318,741			294,326
Investment in direct finance leases		8,577			9,040
Property, plant and equipment		132,640			112,813
Goodwill		219,261			168,987
Intangibles and other assets		82,423			69,258
	$	1,243,207		$	1,072,749
Liabilities and Stockholders’ Equity
Revolving notes	$	101,423		$	39,568
Accounts payable and accrued liabilities		275,101			244,068
Losses in excess of investment in deconsolidated subsidiary		15,313			—
Deferred income taxes		70,592			61,410
Deferred revenue		20,015			18,052
Notes payable		497,166			460,915
Minority interest		9,189			5,146
Commitments and contingencies		—			—
Stockholders’ equity:
Preferred stock — without par value; 25,000 shares authorized; none outstanding		—			—
Common stock — without par value; 50,000 shares authorized; 16,606 and 16,169 shares outstanding at May 31, 2008 and August 31, 2007		17			16
Additional paid-in capital		81,261			78,332
Retained earnings		173,530			165,408
Accumulated other comprehensive loss		(400	)		(166	)
		254,408			243,590
	$	1,243,207		$	1,072,749

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations
(In thousands, except per share amounts, unaudited)

	Three Months Ended						Nine Months Ended
	May 31,						May 31,
	2008			2007			2008			2007
Revenue
Manufacturing	$	201,825		$	241,399		$	484,413		$	529,293
Refurbishment & parts		152,367			118,213			368,833			264,760
Leasing & services		27,914			26,994			74,812			79,154
		382,106			386,606			928,058			873,207
Cost of revenue
Manufacturing		200,813			221,203			469,602			498,713
Refurbishment & parts		120,442			96,288			302,790			221,408
Leasing & services		12,218			11,339			36,422			34,370
		333,473			328,830			808,814			754,491
Margin		48,633			57,776			119,244			118,716
Other costs
Selling and administrative		23,407			20,092			64,591			56,017
Interest and foreign exchange		9,990			10,930			30,263			30,986
Special charges		—			3,091			2,302			19,576
		33,397			34,113			97,156			106,579
Earnings before income taxes, minority interest and equity in unconsolidated subsidiaries		15,236			23,663			22,088			12,137
Income tax expense		(7,573	)		(11,047	)		(12,432	)		(3,398	)
Earnings before minority interest and equity in unconsolidated subsidiaries		7,663			12,616			9,656			8,739
Minority interest		272			178			2,014			217
Equity in earnings (loss) of unconsolidated subsidiaries		191			223			522			(140	)
Net earnings	$	8,126		$	13,017		$	12,192		$	8,816
Basic earnings per common share	$	0.49		$	0.81		$	0.75		$	0.55
Diluted earnings per common share	$	0.49		$	0.81		$	0.75		$	0.55
Weighted average common shares:
Basic		16,507			16,105			16,323			16,017
Diluted		16,529			16,139			16,347			16,058

THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Cash Flows
(In thousands, unaudited)

	Nine Months Ended
	May 31,
	2008			2007
Cash flows from operating activities
Net earnings	$	12,192		$	8,816
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred income taxes		9,182			2,688
Depreciation and amortization		25,333			24,496
Gain on sales of equipment		(6,998	)		(10,781	)
Special charges		2,302			19,576
Minority interest		(1,957	)		(318	)
Other		(103	)		170
Decrease (increase) in assets (net of acquisitions):
Accounts receivable		(7,338	)		4,553
Inventories		(15,136	)		10,916
Assets held for sale		(16,313	)		1,556
Other		(1,476	)		(1,667	)
Increase (decrease) in liabilities (net of acquisitions):
Accounts payable and accrued liabilities		21,211			(36,309	)
Deferred revenue		(939	)		6,114
Net cash provided by operating activities		19,960			29,810
Cash flows from investing activities
Principal payments received under direct finance leases		274			426
Proceeds from sales of equipment		13,375			114,719
Investment in and net advances to unconsolidated subsidiary		519			(869	)
Acquisitions, net of cash acquired		(91,285	)		(267,903	)
De-consolidation of subsidiary		(1,217	)		—
Decrease (increase) in restricted cash		1,690			(445	)
Capital expenditures		(64,477	)		(126,442	)
Net cash used in investing activities		(141,121	)		(280,514	)
Cash flows from financing activities
Changes in revolving notes		48,878			34,106
Proceeds from issuance of notes payable		49,613			99,441
Repayments of notes payable		(5,569	)		(4,082	)
Repayment of subordinated debt		—			(2,091	)
Dividends		(3,933	)		(3,851	)
Stock options exercised and restricted stock awards		2,921			2,616
Excess tax benefit of stock options exercised		9			2,774
Investment by joint venture partner		6,000			5,400
Net cash provided by financing activities		97,919			134,313
Effect of exchange rate changes		2,434			1,816
Decrease in cash and cash equivalents		(20,808	)		(114,575	)
Cash and cash equivalents
Beginning of period		20,808			142,894
End of period	$	—		$	28,319

THE GREENBRIER COMPANIES, INC.

Supplemental Disclosure
Reconciliation of Net Cash Provided by Operating Activities to EBITDA before special charge⁽¹⁾
(In thousands, unaudited)

	Three Months Ended						Nine Months Ended
	May 31,						May 31,
	2008			2007			2008			2007
Net cash provided by operating activities	$	90,891		$	106,515		$	19,960		$	29,810
Changes in working capital		(74,016	)		(78,983	)		22,293			34,413
Special charges		—			(3,091	)		(2,302	)		(19,576	)
Deferred income taxes		(5,186	)		(5,275	)		(9,182	)		(2,688	)
Gain on sales of equipment		4,992			5,006			6,998			10,781
Other		(17	)		(24	)		103			(170	)
Minority interest		276			278			1,957			318
Income tax expense		7,573			11,047			12,432			3,398
Interest and foreign exchange		9,990			10,930			30,263			30,986
Adjusted EBITDA from operations before special charge	$	34,503		$	46,403		$	82,522		$	87,272

⁽¹⁾ “EBITDA” (earnings from continuing operations before interest and foreign exchange, taxes, depreciation and amortization before special charge) 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.