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EXHIBIT 99(1)
TRINITY INDUSTRIES, INC.
NEWS RELEASE
CONTACT:
Neil Shoop
Treasurer
214-589-8561
FOR IMMEDIATE RELEASE
TRINITY INDUSTRIES REPORTS OPERATING RESULTS FOR FISCAL 2001
DALLAS - May 23, 2001 - Trinity Industries, Inc., (NYSE:TRN) today
reported financial results for the full year and fourth quarter of fiscal 2001.
For the fiscal year ended March 31, 2001, the Company reported net
income of $36.5 million (before unusual charges), or 97 cents a diluted share,
on revenues of $1.90 billion. This compares with net income of $165.5 million,
or $4.15 a diluted share, on revenues of $2.74 billion in the fiscal year ended
March 31, 2000. After unusual charges of $173.3 million ($110.9 million after
tax), the Company reported a Fiscal 2001 net loss of $74.4 million, or $1.98 a
diluted share. The unusual charges recorded in Fiscal 2001 related primarily to
restructuring the Company's railcar operations, various investment and asset
write-downs, and severance costs.
For the fourth quarter ended March 31, 2001, the Company reported a net
loss of $4.0 million (before unusual charges), or 11 cents a share, on revenues
of $418.7 million. This compares with net income of $33.9 million, or 87 cents a
diluted share, on revenues
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of $646.4 million in the fourth quarter of the prior fiscal year. After unusual
charges of $55.8 million ($35.7 million after tax), the Company reported a net
loss for the fourth quarter of Fiscal 2001 of $39.7 million, or $1.08 a diluted
share. The unusual charges recorded in the fourth quarter of Fiscal 2001 include
previously announced unusual charges of approximately $25 million plus
approximately $16 million in additional charges related to plant closings and
$14.8 million in litigation reserves related to an adverse jury verdict also
announced earlier.
"The actions we have taken during fiscal 2001 to confront the declining
economy and refocus our resources on our core businesses as indicated in
previous announcements should strengthen us to meet the challenges of fiscal
2002," said Timothy R. Wallace, Trinity's chairman, president and CEO. "The
North American railcar market is not showing signs of recovery at this point.
Pricing for railcars remains very competitive with a large portion of our
customers electing to lease cars rather than purchase them. This coincides with
our decision to expand our leasing business."
"Fortunately Trinity's Construction Products and Inland Barge
businesses are gaining momentum. Since the beginning of April, Trinity's
construction related businesses have continued to improve their earnings as a
result of a return to more normal weather conditions. Our barge manufacturing
business is improving their backlog of barges by continuing to receive orders at
a steady pace. Trinity's U.S. industrial business has stabilized from an
operational point of view. We are pleased that our other business groups are
able to provide some earnings coverage during the steep decline in demand for
new railcars in North America. Until we see more improvement in the North
American
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rail market, we believe it is reasonable to expect that our net income in fiscal
2002 will be comparable to our fiscal 2001 net income (before unusual charges),"
Wallace said.
Trinity Industries, Inc., with headquarters in Dallas, Texas, is one of
the nation's leading diversified industrial companies. In this release, Trinity
is reporting five principal business segments: the Railcar Group, the Inland
Barge Group, the Parts & Services Group, the Construction Products Group, and
the Industrial Group which is a change from previous reporting. Amounts reported
in this release for prior periods have been restated to conform with current
presentation. Trinity's web site may be accessed at http://www.trin.net.
This news release contains "forward looking statements" as defined by
the Private Securities Litigation Reform Act of 1995 and includes statements as
to expectations, intentions and predictions of future financial performance.
Statements that are not historical facts are forward looking. Readers are
directed to Trinity's Form 10-K and other SEC filings for a description of
certain of the business issues and risks, a change in any of which could cause
actual results or outcomes to differ materially from those expressed in the
forward looking statements. Any forward looking statement speaks only as of the
date on which such statement is made. Trinity undertakes no obligation to update
any forward looking statement or statements to reflect events or circumstances
after the date on which such statement is made.
- TABLES TO FOLLOW -
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Trinity Industries, Inc.
Condensed Consolidated Income Statement
(in millions, except per share amounts)
Three Months Ended March 31 Fiscal Year Ended March 31
---------------------------------------- ---------------------------------------
2000 2001* 2000 2001*
----------- -------------------------- ----------- -------------------------
Before 4th After 4th Before After
Qtr Charges Qtr Charges Charges Charges
----------- ----------- ----------- -----------
Revenues $ 646.4 $ 418.7 $ 418.7 $ 2,740.6 $ 1,904.3 $ 1,904.3
Operating profit (loss) $ 55.9 $ (2.4) $ (58.2) $ 279.0 $ 74.8 $ (66.1)
Other expense 2.6 3.9 3.9 16.1 17.8 50.2
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before income taxes 53.3 (6.3) (62.1) 262.9 57.0 (116.3)
Provision (benefit) for income taxes 19.4 (2.3) (22.4) 97.4 20.5 (41.9)
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) $ 33.9 $ (4.0) $ (39.7) $ 165.5 $ 36.5 $ (74.4)
=========== =========== =========== =========== =========== ===========
Net income (loss) per common
share:
Basic $ 0.87 $ (0.11) $ (1.08) $ 4.17 $ 0.97 $ (1.98)
=========== =========== =========== =========== =========== ===========
Diluted $ 0.87 $ (0.11) $ (1.08) $ 4.15 $ 0.97 $ (1.98)
=========== =========== =========== =========== =========== ===========
Weighted average number of
shares outstanding:
Basic 38.9 36.9 36.9 39.7 37.5 37.5
Diluted 39.0 36.9 36.9 39.9 37.5 37.5
* The three months and fiscal year ended March 31, 2001 includes pretax charges
of $55.8 million ($35.7 million after tax or $0.97 per share) and $173.3 million
($110.9 million after tax or $2.95 per share), respectively, related primarily
to restructuring the Company's railcar operations, various investment and asset
write-downs, and severance costs. For the three months ended March 31, 2001,
$53.9 million is included in cost of revenues and $1.9 million in SE&A expenses.
For the fiscal year ended March 31, 2001, $125.3 million is included in cost of
revenues, $15.6 million in SE&A expenses, and $32.4 million in other expenses.
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Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
Three Months Ended Fiscal Year Ended
March 31 March 31
---------------------------- ----------------------------
2000 2001 2000 2001
------------ ------------ ------------ ------------
Railcar Group $ 350.9 $ 152.8 $ 1,515.3 $ 738.9
Inland Barge Group 54.3 58.5 210.1 202.9
Parts & Services Group 82.1 73.0 373.8 316.7
Construction Products
Group 105.0 93.7 445.6 441.0
Industrial Group 65.8 46.5 255.4 220.5
All Other 9.9 10.7 51.1 52.5
Less: Parts & Services
Group sales to other
segments (21.6) (16.5) (110.7) (68.2)
------------ ------------ ------------ ------------
Total revenues $ 646.4 $ 418.7 $ 2,740.6 $ 1,904.3
============ ============ ============ ============
OPERATING PROFIT (LOSS):
Three Months Ended March 31 Fiscal Year Ended March 31
-------------------------------------------- --------------------------------------------
2000 2001 2000 2001
------------ ---------------------------- ------------ ----------------------------
(A)Before 4th After 4th (A)Before After
Qtr Charges Qtr Charges Charges Charges
------------- ------------ ------------ ------------
Railcar Group $ 37.8 $ 4.2 $ (42.7) $ 153.2 $ 36.3 $ (31.7)
Inland Barge Group 6.6 1.8 1.8 25.7 16.1 11.7
Parts & Services Group 10.0 3.5 (4.8) 63.4 22.1 (11.4)
Construction Products
Group 9.8 2.4 2.4 56.2 38.5 38.5
Industrial Group 2.2 (0.7) (0.7) 12.4 6.3 (8.2)
All Other (0.6) (3.2) (3.2) 1.9 (14.5) (15.7)
Corporate (9.9) (10.4) (11.0) (33.8) (30.0) (49.3)
------------ ------------ ------------ ------------ ------------ ------------
Consolidated $ 55.9 $ (2.4) $ (58.2) $ 279.0 $ 74.8 $ (66.1)
============ ============ ============ ============ ============ ============
(A) Charges are described in the preceding pages.
The Company has changed the presentation of segment information as follows:
Highway Products and Concrete & Aggregate businesses are reported in the
Construction Products Group, Operating Profit amounts are after allocation of
Shared Services charges, and certain minor reclassifications between groups were
made. All prior year amounts have been restated to conform to current
presentation.
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Trinity Industries, Inc.
Condensed Consolidated Balance Sheet
(in millions)
End of End of
Fiscal Year Fiscal Year
March 31, 2000 March 31, 2001
-------------- --------------
Cash and equivalents $ 16.9 $ 13.5
Receivables and inventories 710.4 598.2
Property, plant and equipment, at cost 1,304.9 1,534.1
Less accumulated depreciation (491.7) (541.7)
Other assets 198.0 221.8
-------------- --------------
$ 1,738.5 $ 1,825.9
============== ==============
Short-term debt and accounts payable
and accrued liabilities $ 531.0 $ 858.0
Long-term debt 95.4 44.0
Deferred income taxes 58.5 7.1
Other liabilities 38.5 37.8
Stockholders' equity 1,015.1 879.0
-------------- --------------
$ 1,738.5 $ 1,825.9
============== ==============
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