EXHIBIT 99(1)
NEWS RELEASE Investor Contact: Media Contact:
Neil Shoop Nancy Farrar
Treasurer (214) 929-3298
(214) 589-8561
FOR IMMEDIATE RELEASE
TRINITY INDUSTRIES REPORTS OPERATING RESULTS FOR NINE
MONTHS ENDED DECEMBER 31, 2001
DALLAS - Feb 27, 2002. Trinity Industries today reported financial
results for the three months and nine months ended December 31, 2001.
For the nine months ended December 31, 2001, the company reported a net
loss (including unusual charges discussed below) of $34.7 million, or 90 cents
per diluted share, on revenues of $1.35 billion. This compares with a net loss
of $34.7 million, or 92 cents per diluted share, on revenues of $1.49 billion in
the nine months ended December 31, 2000.
For the quarter ended December 31, 2001, the company reported a net
loss of $52.2 million, or $1.23 per share, on revenues of $507.3 million. This
compares with a net loss of $42.4 million, or $1.14 per diluted share, on
revenues of $401.2 million in the same quarter of the prior fiscal year.
In the quarter and nine month period ended December 31, 2001, the
company recorded pre-tax charges of $66.4 million ($1.19 per share based on
average shares outstanding for the December quarter and $1.30 per share based on
average shares outstanding for the nine month period ended in December) related
to restructuring the Rail Group in connection with the Thrall merger and the
down cycle in the railcar industry and other matters, as previously announced.
The charges related to the Rail Group amounted to $50.3 million and relate to
plant closures in Europe and North America, write-down of excess machinery and
equipment, and related costs. Non-railcar related charges were $16.1 million,
$10 million of which related to the company's wind tower business which has been
affected by the Enron bankruptcy. The balance of the $16.1 million related to
the write-off of certain wholly owned and equity investments, including the last
of the company's technology ventures. In the prior year, unusual pre-tax charges
related to plant closures, investment write-downs, and other matters of $65.6
million ($1.13 per share) were recorded in the quarter ended December 31, 2000
and $117.5
million ($2.00 per share) were recorded in the nine month period ended
December 31, 2000.
Results include the operations of Thrall since October 26, 2001, the
closing date of the merger. Revenues from Thrall for the period were
approximately $47.3 million and pre-tax operating loss was $5.6 million.
"Long term we will be stronger and more competitive by having taken
action quickly after our merger to restructure our rail business. This allows us
to focus our resources on the positive aspects of the merger. With the railcar
market in a deep down cycle, we are fortunate to have the year over year
improvement in other areas of our business," said Timothy R. Wallace, Trinity's
Chairman, President and CEO. "Our Construction Products Group experienced much
better weather conditions this quarter than last year and our Inland Barge
business had improved margins due to an improved product mix between barge
construction and some special work they performed this quarter," added Wallace.
"Due to our year-end change from March to December, we will be filing
our annual report in March. Our annual report will reflect the new business
segment grouping presented in this release. The new groupings are aligned with
our new internal management and reporting structure. Our appetite for capital
for additions to the lease fleet
may put pressure on our financial debt covenants as presently structured in the
second half of the year. We expect to renegotiate our credit lines before the
end of June and consider other sources of capital. While we do not intend to
give specific earnings guidance, our present profit outlook for the year is
around breakeven on a consolidated basis and a loss for the Rail Group," said
Wallace.
Trinity Industries, Inc., with headquarters in Dallas, Texas, is one of
the nation's leading diversified industrial companies. Trinity reports five
principal business segments: the Trinity Rail Group, Trinity Railcar Leasing and
Management Services Group, the Inland Barge Group, the Construction Products
Group, and the Industrial Products Group. 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 -
Trinity Industries, Inc.
Condensed Consolidated Income Statement
(in millions, except per share amounts)
<Table>
<Caption>
Three Months Ended Nine Months Ended
December 31 December 31
--------------------------- ---------------------------
2000 2001 2000 2001
------------- ------------- ------------- -------------
Revenues $ 401.2 $ 507.3 $ 1,485.6 $ 1,347.8
Operating profit (loss) $ (30.5) $ (57.8) $ (7.9) $ (16.4)
Other expense 35.7 10.8 46.3 24.1
------------- ------------- ------------- -------------
Income (loss) before income taxes (66.2) (68.6) (54.2) (40.5)
Provision (benefit) for income taxes (23.8) (16.4) (19.5) (5.8)
------------- ------------- ------------- -------------
Net income (loss) $ (42.4) $ (52.2) $ (34.7) $ (34.7)
============= ============= ============= =============
Net income (loss) per common share:
Basic $ (1.14) $ (1.23) $ (0.92) $ (0.90)
============= ============= ============= =============
Diluted $ (1.14) $ (1.23) $ (0.92) $ (0.90)
============= ============= ============= =============
Weighted average number of shares outstanding:
Basic 37.1 42.3 37.6 38.7
Diluted 37.1 42.3 37.6 38.7
</Table>
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
<Table>
<Caption>
Three Months Ended Nine Months Ended
---------------------------- -------------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31
------------ -------------- ------------ ------------
2000 2001 2000 2001
------------ -------------- ------------ ------------
Rail Group $ 260.0 $ 280.9 $ 802.1 $ 660.5
Construction Products
Group 122.0 127.0 432.4 427.2
Inland Barge Group 41.1 48.0 144.5 148.2
Industrial Products Group 43.4 36.9 127.1 106.7
Railcar Leasing & Manage-
ment Services Group 18.2 42.9 108.6 94.0
All Other 12.4 14.6 33.7 50.4
Eliminations (95.9) (43.0) (162.8) (139.2)
------------ -------------- ------------ ------------
Total revenues $ 401.2 $ 507.3 $ 1,485.6 $ 1,347.8
============ ============== ============ ============
</Table>
OPERATING PROFIT (LOSS):
<Table>
<Caption>
Three Months Ended December 31 Nine Months Ended December 31
--------------------------------------------------- ------------------------------------------------
2000 2001 2000 2001
---------------------- ---------------------------- -------------------------- --------------------
Before After Before After Before After Before After
Charges Charges Charges Charges Charges Charges Charges Charges
---------- ----------- ------------ -------------- ------------ ------------ -------- ----------
Rail Group $ 9.5 $ 3.6 $ (15.9) $ (66.2) $ 36.6 $ 3.4 $ (15.5) $ (65.8)
Construction Products
Group 4.9 (2.3) 11.9 11.0 39.5 25.8 46.5 45.6
Inland Barge Group 2.2 1.5 4.8 4.8 14.3 9.9 9.8 9.8
Industrial Products Group 3.4 2.7 1.9 1.9 7.2 6.5 3.9 3.9
Railcar Leasing & Manage-
ment Services Group 8.0 8.0 11.0 11.0 34.2 34.2 30.2 30.2
All Other (8.1) (29.0) (2.8) (15.9) (23.5) (44.4) (8.0) (21.1)
Corporate and eliminations (14.2) (15.0) (4.4) (4.4) (31.1) (43.3) (19.0) (19.0)
---------- ----------- ------------ -------------- ------------ ------------ --------- ----------
Consolidated $ 5.7 $ (30.5) $ 6.5 $ (57.8) $ 77.2 $ (7.9) $ 47.9 $ (16.4)
========== =========== ============ ============== ============ ============ ========= ==========
</Table>