EXHIBIT 99.1
Trinity Industries, Inc.
Basis of Presentation
As of December 31, 2001, the Company (or "Trinity") modified its segment
reporting to align the reportable segments with current management
responsibilities and internal reporting. The modifications consisted primarily
of combining the Company's railcar manufacturing operations with its railcar
parts and components businesses to form the Trinity Rail Group, combined the
leasing and managing of railcars into the Trinity Railcar Leasing and Management
Services Group (this group also includes the sale of railcars from the lease
fleet), and moved the fittings operations to the Construction Products Group.
Trinity's Form 10-K for the nine months ended December 31, 2001, filed March 20,
2002, presented segment information in the changed format for the nine months
ended December 31, 2001 and for fiscal years ended March 31, 2001 and 2000. In
September, 2001, Trinity changed its year-end to December 31 from March 31.
Presented in this exhibit is segment information, in the new reporting format,
for each of the four quarters in the calendar years 2001, 2000 and 1999.
Supplemental Management's Discussion and Analysis of Operating Results comparing
by quarter years 2001 to 2000 and years 2000 to 1999 are included for additional
analysis.
The new reporting format includes the following business segments: (1) the
Trinity Rail group, which manufactures and sells railcars and component parts;
(2) the Construction Products group, which manufactures and sells highway
guardrail and safety products, concrete and aggregate, girders and beams used in
the construction of highway and railway bridges, and weld fittings used in
pressure piping systems; (3) the Inland Barge group, which manufactures and
sells barges and related products for inland waterway services; (4) the
Industrial Products group, which manufactures and sells container heads and
pressure and non-pressure containers for the storage and transportation of
liquefied gases and other liquid and dry products; and (5) the Trinity Railcar
Leasing and Management Services group, which provides services such as fleet
management and leasing. Finally, All Other includes the Company's captive
insurance and transportation companies, structural towers, and other peripheral
businesses.
4
TRINITY INDUSTRIES, INC.
Quarterly Segment Information
Year Ended December 31, 2001
(in millions) (unaudited)
<Table>
<Caption>
REVENUES: Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
2001 2001 2001 2001 Dec. 31, 2001
--------- --------- --------- --------- -------------
Trinity Rail Group
Outside $ 178.7 $ 187.9 $ 95.5 $ 237.9 $ 700.0
Intersegment 114.7 50.4 48.8 43.6 257.5
--------- --------- --------- --------- ---------
Total 293.4 238.3 144.3 281.5 957.5
Construction Products Group
Outside 116.6 155.7 144.5 127.0 543.8
Intersegment 1.5 2.1 1.7 1.2 6.5
--------- --------- --------- --------- ---------
Total 118.1 157.8 146.2 128.2 550.3
Inland Barge Group
Outside 58.4 49.6 50.6 48.0 206.6
Intersegment 0.1 -- -- -- 0.1
--------- --------- --------- --------- ---------
Total 58.5 49.6 50.6 48.0 206.7
Industrial Products Group
Outside 33.2 31.0 38.8 36.9 139.9
Intersegment 5.3 0.7 0.8 0.8 7.6
--------- --------- --------- --------- ---------
Total 38.5 31.7 39.6 37.7 147.5
Railcar Leasing & Manage-
ment Services Group 20.1 26.5 24.6 42.9 114.1
All Other
Outside 11.7 16.9 18.9 14.6 62.1
Intersegment 15.8 10.1 9.4 8.6 43.9
--------- --------- --------- --------- ---------
Total 27.5 27.0 28.3 23.2 106.0
Eliminations (137.4) (63.3) (60.7) (54.2) (315.6)
--------- --------- --------- --------- ---------
Consolidated Total $ 418.7 $ 467.6 $ 372.9 $ 507.3 $ 1,766.5
========= ========= ========= ========= =========
</Table>
<Table>
<Caption>
OPERATING PROFIT (LOSS): Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
2001 2001 2001 2001 Dec. 31, 2001
--------- --------- --------- --------- -------------
Trinity Rail Group $ (38.6) $ 4.0 $ (3.6) $ (66.2) $ (104.4)
Construction Products Group 3.3 16.8 17.8 11.0 48.9
Inland Barge Group 1.8 2.9 2.1 4.8 11.6
Industrial Products Group (1.1) (0.4) 2.4 1.9 2.8
Railcar Leasing & Manage-
ment Services Group 7.8 10.1 9.1 11.0 38.0
All Other (14.7) (3.2) (2.0) (15.9) (35.8)
Eliminations & Corporate Items (16.7) (7.6) (7.0) (4.4) (35.7)
--------- --------- --------- --------- ---------
Consolidated Total $ (58.2) $ 22.6 $ 18.8 $ (57.8) $ (74.6)
========= ========= ========= ========= =========
</Table>
5
TRINITY INDUSTRIES, INC.
Quarterly Segment Information
Year Ended December 31, 2000
(in millions) (unaudited)
<Table>
<Caption>
REVENUES: Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
2000 2000 2000 2000 Dec. 31, 2000
--------- --------- --------- --------- -------------
Trinity Rail Group
Outside $ 370.6 $ 249.0 $ 226.2 $ 164.1 $ 1,009.9
Intersegment 30.6 25.8 43.8 97.4 197.6
--------- --------- --------- --------- ---------
Total 401.2 274.8 270.0 261.5 1,207.5
Construction Products Group
Outside 134.5 154.9 155.5 122.0 566.9
Intersegment 2.3 3.1 3.6 2.9 11.9
--------- --------- --------- --------- ---------
Total 136.8 158.0 159.1 124.9 578.8
Inland Barge Group 54.3 51.7 51.7 41.1 198.8
Industrial Products Group
Outside 48.3 41.9 41.8 43.4 175.4
Intersegment 1.8 1.3 1.8 1.4 6.3
--------- --------- --------- --------- ---------
Total 50.1 43.2 43.6 44.8 181.7
Railcar Leasing & Manage-
ment Services Group 35.9 24.7 65.7 18.2 144.5
All Other
Outside 2.8 11.5 9.8 12.4 36.5
Intersegment 14.1 14.2 9.1 6.7 44.1
--------- --------- --------- --------- ---------
Total 16.9 25.7 18.9 19.1 80.6
Eliminations (48.8) (44.4) (58.3) (108.4) (259.9)
--------- --------- --------- --------- ---------
Consolidated Total $ 646.4 $ 533.7 $ 550.7 $ 401.2 $ 2,132.0
========= ========= ========= ========= =========
</Table>
<Table>
<Caption>
OPERATING PROFIT (LOSS): Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
2000 2000 2000 2000 Dec. 31, 2000
--------- --------- --------- --------- --------------
Trinity Rail Group $ 37.9 $ 16.7 $ (16.9) $ 3.6 $ 41.3
Construction Products Group 10.2 16.3 11.8 (2.3) 36.0
Inland Barge Group 6.6 6.5 1.9 1.5 16.5
Industrial Products Group 2.3 1.9 1.9 2.7 8.8
Railcar Leasing & Manage-
ment Services Group 13.8 9.3 16.9 8.0 48.0
All Other (3.0) (5.1) (10.3) (29.0) (47.4)
Eliminations & Corporate Items (11.9) (8.1) (20.2) (15.0) (55.2)
--------- --------- --------- --------- ---------
Consolidated Total $ 55.9 $ 37.5 $ (14.9) $ (30.5) $ 48.0
========= ========= ========= ========= =========
</Table>
6
TRINITY INDUSTRIES, INC.
Quarterly Segment Information
Year Ended December 31, 1999
(in millions) (unaudited)
<Table>
<Caption>
REVENUES: Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
1999 1999 1999 1999 Dec. 31, 1999
--------- --------- --------- --------- -------------
Trinity Rail Group
Outside $ 513.3 $ 422.3 $ 419.0 $ 420.1 $ 1,774.7
Intersegment 29.8 17.7 7.3 10.7 65.5
--------- --------- --------- --------- ---------
Total 543.1 440.0 426.3 430.8 1,840.2
Construction Products Group
Outside 126.9 149.6 158.2 139.1 573.8
Intersegment 4.1 2.6 2.8 2.4 11.9
--------- --------- --------- --------- ---------
Total 131.0 152.2 161.0 141.5 585.7
Inland Barge Group 47.6 51.7 55.3 48.8 203.4
Industrial Products Group
Outside 38.4 40.5 44.1 46.3 169.3
Intersegment 2.0 1.8 2.3 2.2 8.3
--------- --------- --------- --------- ---------
Total 40.4 42.3 46.4 48.5 177.6
Railcar Leasing & Manage-
ment Services Group 48.4 28.4 22.4 44.8 144.0
All Other
Outside 0.5 0.9 1.0 1.7 4.1
Intersegment 12.6 12.7 13.7 13.9 52.9
--------- --------- --------- --------- ---------
Total 13.1 13.6 14.7 15.6 57.0
Eliminations (48.5) (34.8) (26.1) (29.2) (138.6)
--------- --------- --------- --------- ---------
Consolidated Total $ 775.1 $ 693.4 $ 700.0 $ 700.8 $ 2,869.3
========= ========= ========= ========= =========
</Table>
<Table>
<Caption>
OPERATING PROFIT (LOSS): Quarter Ended
------------------------------------------------
March 31, June 30, Sep. 30, Dec. 31, Year Ended
1999 1999 1999 1999 Dec. 31, 1999
--------- --------- --------- --------- -------------
Trinity Rail Group $ 57.6 $ 50.2 $ 47.3 $ 39.2 $ 194.3
Construction Products Group 8.0 17.0 21.1 13.8 59.9
Inland Barge Group 2.8 5.6 7.4 6.1 21.9
Industrial Products Group (0.6) 3.6 3.4 3.7 10.1
Railcar Leasing & Manage-
ment Services Group 14.9 12.3 9.5 15.7 52.4
All Other 0.2 (1.5) (2.3) (1.4) (5.0)
Eliminations & Corporate Items (16.5) (9.8) (9.5) (8.3) (44.1)
--------- --------- --------- --------- ---------
Consolidated Total $ 66.4 $ 77.4 $ 76.9 $ 68.8 $ 289.5
========= ========= ========= ========= =========
</Table>
7
Trinity Industries, Inc.
Supplemental Management's Discussion and
Analysis of Operating Results
Three Months Ended December 31, 2001 Compared to
Three Months Ended December 31, 2000
Revenues for the three months ended December 31, 2001 increased to $507.3
million from $401.2 million for the three months ended December 31, 2000
primarily due to the merger of Thrall Car Manufacturing Company ("Thrall") on
October 26, 2001, increased sales of railcars from the lease fleet, and higher
Construction Products revenues due to more favorable weather conditions.
Operating loss was $57.8 million in the 2001 period, which included $64.3
million of unusual charges, compared to an operating loss of $30.5 million in
the 2000 period, which included $36.2 million of unusual charges.
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
---------------------
2001 2000
-------- --------
(in millions)
Revenues ................................................. $ 281.5 $ 261.5
Operating profit (loss) including unusual
charges ................................................ $ (66.2) $ 3.6
Operating profit (loss) before unusual charges ........... $ (15.9) $ 9.5
Operating profit (loss) margin before unusual
charges ................................................ (5.6)% 3.6%
</Table>
Overall revenues for the Trinity Rail group increased due primarily to the
contribution of the Thrall operations. Operating loss was $66.2 million ($15.9
million loss excluding unusual charges) in the quarter ended December 31, 2001.
This compares to operating profit of $3.6 million ($9.5 million profit excluding
unusual charges) in the same quarter of the prior year. Results declined due to
the current downturn in the North American railcar industry and integration
expenses recorded in the current quarter related to the Thrall merger.
Comparison to the prior year for Trinity Rail group revenues and operating
profit was affected by the level of railcars delivered to customers of Trinity's
leasing company. Approximately 15% of railcar deliveries for the current quarter
were to the Company's leasing fleet. This compares to sales to the leasing fleet
for the year ago quarter of approximately 37%. Sales to Trinity's leasing
subsidiary and related profits are eliminated in consolidation. For the current
quarter, revenues from the sale of railcars to the leasing subsidiary were $42.6
million while profit was $1.7 million. This compares with revenues and profit
from the sale of railcars to the lease fleet of $95.7 million and $6.4 million,
respectively, for the same quarter a year ago.
8
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 128.2 $ 124.9
Operating profit (loss) including unusual
charges .............................................. $ 11.0 $ (2.3)
Operating profit before unusual charges ................ $ 11.9 $ 4.9
Operating profit margin before unusual charges ......... 9.3% 3.9%
</Table>
Revenues and operating profit increased in the current quarter in the
Construction Products group due primarily to improved weather conditions.
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 48.0 $ 41.1
Operating profit including unusual charges ............. $ 4.8 $ 1.5
Operating profit before unusual charges ................ $ 4.8 $ 2.2
Operating profit margin before unusual charges ......... 10.0% 5.4%
</Table>
In the Inland Barge group, operating profit was $4.8 million compared to $1.5
million for the same period last year. Prior year's results included $0.7
million of unusual charges. The increase in operating profit was attributable to
increased deliveries of the more profitable tank barges partially offset by
lower volumes in hopper barge sales. Operating profit margins, which were up in
the current quarter due to special work, will return to more normal levels in
future periods.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 37.7 $ 44.8
Operating profit including unusual charges ............. $ 1.9 $ 2.7
Operating profit before unusual charges ................ $ 1.9 $ 3.4
Operating profit margin before unusual charges ......... 5.0% 7.6%
</Table>
In the Industrial Products group, revenues and operating profit were $37.7
million and $1.9 million, respectively in the current period compared to
revenues and operating profit of $44.8 million and $2.7 million ($3.4 million
profit excluding unusual charges), respectively for the same period
9
last year. Reduced revenues and operating profit in the Industrial Products
group was primarily a result of reduced demand from gas distributors and pricing
pressures in the Mexico liquefied petroleum gas market.
RAILCAR LEASING AND MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 42.9 $ 18.2
Operating profit ....................................... $ 11.0 $ 8.0
Operating profit margin ................................ 25.6% 44.0%
</Table>
Revenues in the Railcar Leasing & Management Services group increased to $42.9
million for the three months ended December 31, 2001 compared to $18.2 million
for the three months ended December 31, 2000. The increase was due primarily to
the sale of cars from the lease fleet in the current quarter ($14.7 million) and
increased leasing revenues. Operating profit increased to $11.0 million from
$8.0 million. Sale of cars from the lease fleet accounted for $1.4 million of
the increase and the remainder was due primarily to increased profit from
leasing activities.
ALL OTHER
Revenues in All Other increased in the current quarter compared to the same
quarter a year ago due primarily to increased windtower revenues. Current period
operating loss of $15.9 million included $13.1 million of unusual charges
primarily related to exiting our internet related business and to our windtower
business, which has been affected by the Enron bankruptcy. Prior quarter
operating loss of $29.0 million included $20.9 million of unusual charges
primarily related to exiting the concrete mixer and related business and
environmental liabilities.
Three Months Ended September 30, 2001 Compared to
Three Months Ended September 30, 2000
Revenues for the three months ended September 30, 2001 declined to $372.9
million from $550.7 million for the three months ended September 30, 2000
primarily due to reduced railcar shipments and related declines in railcar
component parts sales. Operating profit was $18.8 million compared to an
operating loss of $14.9 million. The prior quarter operating loss included $48.9
million of unusual charges related primarily to restructuring the railcar
operations, exiting the flange and valve businesses, writing down certain
inventory, curtailing international barge operations, disposing of excess
assets, and cutting back corporate employees.
10
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 144.3 $ 270.0
Operating profit (loss) including unusual
charges .............................................. $ (3.6) $ (16.9)
Operating profit (loss) before unusual charges ......... $ (3.6) $ 10.4
Operating profit (loss) margin before unusual
charges .............................................. (2.5)% 3.9%
</Table>
Revenues for the Trinity Rail group declined from $270.0 million for the quarter
ended September 30, 2000 to $144.3 million in the quarter ended September 30,
2001 due to the current downturn in the railcar industry which resulted in a 54%
reduction in shipments of new cars over the same period last year and reduced
sales prices. Operating loss of $3.6 million was recorded in the current quarter
compared to a loss of $16.9 million in the same quarter of a year ago. The year
ago loss included unusual charges of $27.3 million related to restructuring the
railcar operations. In the current quarter, revenues from the sale of railcars
to the leasing company were $46.6 million while profit was $2.3 million. This
compares with revenues and profit on railcars sold to the lease fleet of $42.4
million and $3.7 million, respectively, for the same quarter a year ago. Sales
to Trinity's leasing company and related profits are eliminated in
consolidation.
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 146.2 $ 159.1
Operating profit including unusual charges ............. $ 17.8 $ 11.8
Operating profit before unusual charges ................ $ 17.8 $ 18.3
Operating profit margin before unusual charges ......... 12.2% 11.5%
</Table>
Revenues for the Construction Products group decreased in the current quarter to
$146.2 million from $159.1 million in the same quarter a year ago. The decrease
was mainly due to reduced Highway Safety products revenues and to exiting the
flange and valve businesses. Operating profit increased in the current quarter
due primarily to the impact of $6.5 million of unusual charges related to
exiting the flange and valve businesses in the year ago quarter.
11
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 50.6 $ 51.7
Operating profit including unusual charges ............. $ 2.1 $ 1.9
Operating profit before unusual charges ................ $ 2.1 $ 5.6
Operating profit margin before unusual charges ......... 4.2% 10.8%
</Table>
In the Inland Barge group, operating profit was $2.1 million compared to $1.9
million for the same period last year. Last year's operating profit included
unusual charges of $3.7 million to curtail international barge operations.
Excluding the unusual charge, the decline in operating profit was predominately
the result of reduced sales prices, primarily on hopper barges, due to very
competitive markets.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 39.6 $ 43.6
Operating profit ....................................... $ 2.4 $ 1.9
Operating profit margin ................................ 6.1% 4.4%
</Table>
In the Industrial Products group, operating profit was $2.4 million compared to
$1.9 million for the same period last year. Increased operating profit from
domestic sales of liquefied petroleum gas containers was partially offset by
reduced demand from gas distributors and pricing pressures in the Mexico
liquefied petroleum gas market.
RAILCAR LEASING AND MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 24.6 $ 65.7
Operating profit ....................................... $ 9.1 $ 16.9
Operating profit margin ................................ 37.0% 25.7%
</Table>
Revenues in the Railcar Leasing & Management Services group for the current
quarter were $24.6 million compared to $65.7
12
million for the same quarter of the prior year. The prior year period included
sales from the lease fleet of $47.4 million compared to $0.4 million in the
current period. Operating profit on the sale of cars was $8.6 million in the
prior quarter compared to $0.1 million in the current quarter. Accordingly,
operating profit was higher in the prior period from the increased sale of cars
from the lease fleet.
ALL OTHER
Revenues in All Other increased in the current quarter compared to the same
quarter a year ago due primarily to increased windtower revenues. This increase
was partially offset by the reduction in revenues as a result of exiting the
concrete mixer and related business. Operating loss in the current period of
$2.0 million compares with operating loss of $10.3 million in the previous
year's period. The prior year period included the operating losses associated
with the concrete mixer and related business.
Three Months Ended June 30, 2001 Compared to
Three Months Ended June 30, 2000
Revenues for the three months ended June 30, 2001 decreased to $467.6 million
from $533.7 million primarily due to reduced car shipments in the Trinity Rail
group and lower revenues in the Industrial Products group. Operating profit
decreased to $22.6 million compared to $37.5 million.
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 238.3 $ 274.8
Operating profit ....................................... $ 4.0 $ 16.7
Operating profit margin ................................ 1.7% 6.1%
</Table>
Revenues for the Trinity Rail group decreased to $238.3 million from $274.8
million while operating profit decreased to $4.0 million from $16.7 million. The
decline in revenues and operating profit was a result of the significant
weakening in demand for new railcars in North America. This creates a very
competitive market. Trinity Rail group operating margins declined due to average
sales price declines and inefficiencies associated with changeover of production
lines to different car types and start up of new products. For the current
quarter, revenues from the sale of railcars to the leasing company were $48.1
million while profit was $2.6 million. This compares with revenues and profit on
railcars sold to the lease fleet of $24.4 million and $2.0 million,
respectively, for the same quarter a year ago.
13
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 157.8 $ 158.0
Operating profit ....................................... $ 16.8 $ 16.3
Operating profit margin ................................ 10.6% 10.3%
</Table>
Revenues for the Construction Products group remained stable at $157.8 million
for the current period, while operating profit increased slightly to $16.8
million. Operating profit increases in the Concrete & Aggregate portion of this
segment were offset by losses in the Bridge business related to flooding in the
Houston plant.
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 49.6 $ 51.7
Operating profit ....................................... $ 2.9 $ 6.5
Operating profit margin ................................ 5.8% 12.6%
</Table>
Revenues for the Inland Barge group were $49.6 million for the current quarter
and $51.7 million for the prior year quarter. Operating profit decreased to $2.9
million from $6.5 million. Decreased operating profit was due mainly to
competitive price pressures for both hopper barges and tank barges.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
---------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 31.7 $ 43.2
Operating profit (loss) ............................... $ (0.4) $ 1.9
Operating profit (loss) margin ......................... (1.3)% 4.4%
</Table>
Industrial Products group revenues decreased to $31.7 million compared to $43.2
million, while operating profit decreased to a loss of $0.4 million from profit
of $1.9 million. The reduction of revenues and operating profit was primarily a
14
result of reduced demand from gas distributors and pricing pressures in the
Mexico market.
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 26.5 $ 24.7
Operating profit ....................................... $ 10.1 $ 9.3
Operating profit margin ................................ 38.1% 37.7%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
increased in the current quarter due primarily to increased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $5.7 million
compared to $0.6 million in the prior quarter. Operating profit on lease fleet
sales were $1.1 million in the current quarter compared to $0.1 million in the
prior quarter.
ALL OTHER
Operating loss in All Other decreased in the current quarter compared to the
same quarter a year ago due primarily to increased windtower profits. This
increase was partially offset by operating losses recorded by the concrete mixer
and related business.
Three Months Ended March 31, 2001 Compared to
Three Months Ended March 31, 2000
Revenues for the three months ended March 31, 2001 decreased to $418.7 million
from $646.4 million primarily due to reduced car shipments in the Trinity Rail
group, lower revenues in the Industrial Products group, and fewer railcars sold
from the lease fleet. Operating profit decreased to a loss of $58.2 million
compared to profit of $55.9 million. The current period loss included unusual
charges of $55.8 million related primarily to restructuring the railcar
operations and related plant closings and litigation reserves.
15
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
---------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 293.4 $ 401.2
Operating profit (loss) including unusual
charges .............................................. $ (38.6) $ 37.9
Operating profit before unusual charges ................ $ 8.6 $ 37.9
Operating profit margin before unusual
charges .............................................. 2.9% 9.4%
</Table>
Revenues for the Trinity Rail group decreased to $293.4 million from $401.2
million while operating profit decreased to a loss of $38.6 million from profit
of $37.9 million. The current year loss included unusual charges of $47.2
million. The decline in revenues and operating profit before unusual charges was
a result of the significant weakening in demand for new railcars in North
America. Operating margins declined due primarily to unabsorbed overhead from
lower volumes. For the current quarter, revenues from the sale of railcars to
the leasing company were $113.0 million while profit was $5.8 million. This
compares with revenues and profit on railcars sold to the lease fleet of $29.7
million and $2.2 million, respectively, for the same quarter a year ago.
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 118.1 $ 136.8
Operating profit ....................................... $ 3.3 $ 10.2
Operating profit margin ................................ 2.8% 7.5%
</Table>
Revenues for the Construction Products group decreased to $118.1 million for the
current period, while operating profit decreased to $3.3 million. This decrease
in operating results was due mainly to poor weather conditions during the
current quarter that depressed operations for both highway safety and concrete
and aggregate products.
16
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 58.5 $ 54.3
Operating profit ....................................... $ 1.8 $ 6.6
Operating profit margin ................................ 3.1% 12.2%
</Table>
Revenues for the Inland Barge group were $58.5 million for the current quarter
and $54.3 million for the prior year quarter. Operating profit decreased to $1.8
million from $6.6 million. Decreased operating profit was due mainly to
competitive price pressures for both hopper barges and tank barges.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
---------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 38.5 $ 50.1
Operating profit (loss) ............................... $ (1.1) $ 2.3
Operating profit (loss) margin ......................... (2.9)% 4.6%
</Table>
Industrial Products group revenues decreased to $38.5 million compared to $50.1
million, while operating profit decreased to a loss of $1.1 million from profit
of $2.3 million. The reduction of revenues and operating profit was primarily a
result of competitive pressure in pricing for domestic liquefied petroleum gas
containers and reduced demand from gas distributors in the Mexico market.
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2001 2000
-------- --------
(in millions)
Revenues ............................................... $ 20.1 $ 35.9
Operating profit ....................................... $ 7.8 $ 13.8
Operating profit margin ................................ 38.8% 38.4%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
decreased in the current quarter due primarily to decreased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $1.7 million
compared to $19.7 million in the prior quarter. Operating profit on lease fleet
sales were $0.2 million in the current quarter compared to $5.5 million in the
prior quarter.
17
ALL OTHER
Operating loss in All Other increased in the current quarter to $14.7 million
from $3.0 million for the same quarter of the previous year. The current year
loss included unusual charges of $8.0 million related to exiting the concrete
mixer and related business.
Three Months Ended December 31, 2000 Compared to
Three Months Ended December 31, 1999
Revenues for the three months ended December 31, 2000 were $401.2 million
compared to $700.8 million for the same period of the prior year primarily due
to reduced railcar shipments and related declines in railcar component parts
sales and reduced revenues in the Construction Products group. Operating loss of
$30.5 million in the current quarter compared to an operating profit of $68.8
million in the same quarter of the prior year. The current period operating loss
included unusual charges of $36.2 million primarily related to exiting the
concrete mixer and related business and flange and valve businesses and
environmental liabilities associated with previously closed facilities.
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 261.5 $ 430.8
Operating profit including unusual charges ............. $ 3.6 $ 39.2
Operating profit before unusual charges ................ $ 9.5 $ 39.2
Operating profit margin before unusual
charges .............................................. 3.6% 9.1%
</Table>
Trinity Rail group operating profit was $3.6 million compared to $39.2 million
for the same period last year. Current period results include unusual charges of
$5.9 million primarily related to a railcar repair contract. Results declined
due to the current downturn in the North American railcar industry. Operating
profit margins were impacted by the lower volumes, changeover of the production
lines to different car types, and start up costs associated with new products.
Comparison to the prior year for Railcar segment revenues and operating profit
were affected by the level of railcars delivered to customers of Trinity's
leasing company. Approximately 42% of railcar deliveries for the current quarter
were to the Company's leasing fleet. Sales to Trinity's leasing company and
related profits are eliminated in consolidation. For the current quarter,
revenues from the sale of railcars to the leasing
18
company were $95.7 million while profit was $6.4 million. This compares with
revenues and profit on railcars sold to the lease fleet of $9.3 million and $1.0
million, respectively, for the same quarter a year ago.
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
---------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 124.9 $ 141.5
Operating profit (loss) including unusual
charges .............................................. $ (2.3) $ 13.8
Operating profit before unusual charges ................ $ 4.9 $ 13.8
Operating profit margin before unusual charges ......... 3.9% 9.8%
</Table>
Current quarter revenues and operating profit margins in the Construction
Products group were negatively affected by periods of harsh winter weather and
competitive pricing in certain concrete and aggregate markets. Current period
operating loss of $2.3 million included unusual charges of $7.2 million related
to exiting the flange and valve businesses. Additionally, operating profit
margins were also impacted by an increased proportion of revenues coming from
bridge sales that have lower margins.
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 41.1 $ 48.8
Operating profit including unusual charges ............. $ 1.5 $ 6.1
Operating profit before unusual charges ................ $ 2.2 $ 6.1
Operating profit margin before unusual charges ......... 5.4% 12.5%
</Table>
In the Inland Barge group, operating profit was $1.5 million compared to $6.1
million for the same period last year. Current period operating profit included
unusual charges of $0.7 million related to a bad debt write-off. The decline in
operating results excluding the unusual charge were predominately the result of
reduced sales prices, primarily on hopper barges, due to very competitive
markets.
19
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 44.8 $ 48.5
Operating profit including unusual charges ............. $ 2.7 $ 3.7
Operating profit before unusual charges ................ $ 3.4 $ 3.7
Operating profit margin before unusual charges ......... 7.6% 7.6%
</Table>
In the Industrial Products group, operating profit was $2.7 million on revenues
of $44.8 million compared to operating profit of $3.7 million on revenues of
$48.5 million for the same period last year. Current period operating profit
included unusual charges of $0.7 million related to a closed facility. Decreases
in revenues and operating profit in the Industrial group were primarily a result
of competitive pricing pressure for liquefied petroleum gas containers.
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
December 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 18.2 $ 44.8
Operating profit ....................................... $ 8.0 $ 15.7
Operating profit margin ................................ 44.0% 35.0%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
decreased in the current quarter due primarily to decreased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $0.3 million
compared to $26.0 million in the prior quarter. Operating profit on lease fleet
sales were $0.1 million in the current quarter compared to $6.7 million in the
prior quarter.
ALL OTHER
Operating loss in All Other increased in the current quarter to $29.0 million
compared to $1.4 million for the same quarter of the previous year. The current
year loss included unusual charges of $20.9 million primarily related to exiting
the concrete mixer and related business and recording certain environmental
liabilities associated with previously closed facilities. The current period
also included operating losses attributable to our e-commerce initiatives.
20
Three Months Ended September 30, 2000 Compared to
Three Months Ended September 30, 1999
Revenues for the three months ended September 30, 2000 were $550.7 million
compared to $700.0 million for the same period of the previous year primarily
due to reduced railcar shipments and related declines in railcar component parts
sales. Operating loss was $14.9 million compared to operating profit of $76.9
million. The current period operating loss included unusual charges of $48.9
million related primarily to restructuring the railcar operations, exiting the
flange and valve businesses, writing down certain inventory, curtailing
international barge operations, disposing of excess assets, and staff reduction
of corporate employees
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
---------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 270.0 $ 426.3
Operating profit (loss) including unusual
charges .............................................. $ (16.9) $ 47.3
Operating profit before unusual charges ................ $ 10.4 $ 47.3
Operating profit margin before unusual charges ......... 3.9% 11.1%
</Table>
Trinity Rail group operating loss was $16.9 million compared to operating profit
of $47.3 million for the same period last year. The current year operating loss
included $27.3 million of unusual charges related to restructuring the railcar
operations. Revenues and operating profit (excluding unusual charges) declined
due to the current downturn in the railcar industry which resulted in reduced
shipments of new cars by 37% over the same period last year and reduced sales
prices. Operating profit margins were further impacted by changeover of
production lines to different car types and start up costs associated with new
products. For the current quarter, revenues from the sale of railcars to the
leasing company were $42.4 million while profit was $3.7 million. This compares
with sales and profit on railcars sold to the lease fleet of $5.1 million and
$0.4 million, respectively, for the same quarter a year ago.
21
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 159.1 $ 161.0
Operating profit including unusual charges ............. $ 11.8 $ 21.1
Operating profit before unusual charges ................ $ 18.3 $ 21.1
Operating profit margin before unusual charges ......... 11.5% 13.1%
</Table>
Revenues for the Construction Products group remained level compared to the
prior year. A strong construction market for highway products was offset by a
very competitive market for fittings products. Operating profit of $11.8 million
for the current period included unusual charges in the amount of $6.5 million
related to exiting the flange business. Excluding the unusual charges, operating
profit declined somewhat due to competitive pricing in fittings products and
certain concrete and aggregate markets, the impact of an increased proportion of
revenues coming from bridge sales which have lower margins, and fewer work days
which increased unabsorbed manufacturing burden costs.
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 51.7 $ 55.3
Operating profit including unusual charges ............. $ 1.9 $ 7.4
Operating profit before unusual charges ................ $ 5.6 $ 7.4
Operating profit margin before unusual charges ......... 10.8% 13.4%
</Table>
In the Inland Barge group, operating profit was $1.9 million compared to $7.4
million for the prior year period. Current period operating profit included
unusual charges of $3.7 million related to curtailing international barge
operations. Excluding the unusual charges, the decline in operating profit was
predominately the result of reduced sales prices, primarily on hopper barges,
due to very competitive markets.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 43.6 $ 46.4
Operating profit ....................................... $ 1.9 $ 3.4
Operating profit margin ................................ 4.4% 7.3%
</Table>
22
In the Industrial Products segment, operating profit was $1.9 million compared
to $3.4 million for the prior year period. Reduced revenues and operating profit
in the Industrial Products group was primarily a result of competitive pricing
pressures in the liquefied petroleum gas container business.
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
September 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 65.7 $ 22.4
Operating profit ....................................... $ 16.9 $ 9.5
Operating profit margin ................................ 25.7% 42.4%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
increased in the current quarter due primarily to increased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $47.4
million compared to $3.4 million in the prior quarter. Operating profit on lease
fleet sales were $8.6 million in the current quarter compared to $0.3 million in
the prior quarter.
ALL OTHER
Operating loss in All Other increased in the current quarter to $10.3 million
compared to $2.3 million for the same quarter of the prior year. Losses recorded
in the current period were primarily attributable to a book-to-physical
inventory adjustment at the concrete mixer and related business and operating
losses attributable to our e-commerce initiatives.
Three Months Ended June 30, 2000 Compared to
Three Months Ended June 30, 1999
Revenues for the three months ended June 30, 2000 decreased to $533.7 million
from $693.4 million primarily due to reduced car shipments and related downturn
in railcar parts and components recorded in the Trinity Rail group. Operating
profit decreased to $37.5 million compared to $77.4 million.
23
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 274.8 $ 440.0
Operating profit ....................................... $ 16.7 $ 50.2
Operating profit margin ................................ 6.1% 11.4%
</Table>
Revenues for the Trinity Rail group decreased to $274.8 million from $440.0
million while operating profit decreased to $16.7 million from $50.2 million.
The decline in revenues and operating profit was a result of the significant
weakening in demand for new railcars in North America. This created a very
competitive market for new cars and related components and parts. Trinity Rail
group operating margins declined due to average sales price declines and
inefficiencies associated with changeover of production lines to different car
types and start up of new products. For the current quarter, revenues from the
sale of railcars to the leasing company were $24.4 million while profit was $2.0
million. This compares with revenues and profit on railcars sold to the lease
fleet of $15.5 million and $2.9 million, respectively, for the same quarter a
year ago.
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 158.0 $ 152.2
Operating profit ....................................... $ 16.3 $ 17.0
Operating profit margin ................................ 10.3% 11.2%
</Table>
Revenues for the Construction Products segment increased slightly to $158.0
million from $152.2 million, while operating profit decreased slightly to $16.3
million. Revenues increased due to a strong highway products market,
particularly the demand for guardrail. Increased operating profit for highway
products was offset by decreased operating profit from concrete and aggregates.
Decreased concrete and aggregate results were primarily attributable to an
unusually rainy season over the past three months in principal Texas markets and
competitive pricing in certain markets.
24
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 51.7 $ 51.7
Operating profit ....................................... $ 6.5 $ 5.6
Operating profit margin ................................ 12.6% 10.8%
</Table>
Revenues for the Inland Barge group were $51.7 million for the current quarter
and $51.7 million for the prior year quarter. Operating profit increased to
$6.5 million from $5.6 million, a 16.1% increase. Increased operating profit
was due mainly to cost reductions and operating efficiencies.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 43.2 $ 42.3
Operating profit ....................................... $ 1.9 $ 3.6
Operating profit margin ................................ 4.4% 8.5%
</Table>
Industrial Products group revenues increased slightly to $43.2 million compared
to $42.3 million, while operating profit decreased to $1.9 million from $3.6
million. The reduction of revenues and operating profit was primarily a result
of competitive pressure in pricing.
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
June 30,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 24.7 $ 28.4
Operating profit ....................................... $ 9.3 $ 12.3
Operating profit margin ................................ 37.7% 43.3%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
decreased in the current quarter due primarily to decreased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $0.6 million
compared to $8.9 million in the prior quarter. Operating profit on lease fleet
sales were $0.1 million in the current quarter compared to $2.2 million in the
prior quarter.
25
ALL OTHER
Operating loss in All Other increased in the current quarter to $5.1 million
compared to $1.5 million for the same quarter of the previous year. The
increased loss was primarily attributable to operating losses in our e-commerce
initiatives.
Three Months Ended March 31, 2000 Compared to
Three Months Ended March 31, 1999
Revenues for the three months ended March 31, 2000 decreased to $646.4 million
from $775.1 million due to reduced car shipments in the Trinity Rail group,
along with a decline in revenues in the related railcar parts and components
businesses. These decreases were partially offset by improved results in the
Construction Products group, Inland Barge group, and Industrial Products group.
Operating profit decreased to $55.9 million compared to $66.4 million. Decrease
operating profit in the Trinity Rail group was partially offset by increased
operating profits in the Construction Products, Inland Barge, and Industrial
Products groups.
TRINITY RAIL GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 401.2 $ 543.1
Operating profit ....................................... $ 37.9 $ 57.6
Operating profit margin ................................ 9.4% 10.6%
</Table>
Revenues for the Trinity Rail group decreased to $401.2 million from $543.1
million while operating profit decreased to $37.9 million from $57.6 million.
Lower revenues and operating profit were a result of softened demand in this
business. For the current quarter, revenues from the sale of railcars to the
leasing company were $29.7 million while profit was $2.2 million. This compares
with revenues and profit on railcars sold to the lease fleet of $27.4 million
and $3.5 million, respectively, for the same quarter a year ago.
26
CONSTRUCTION PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 136.8 $ 131.0
Operating profit ....................................... $ 10.2 $ 8.0
Operating profit margin ................................ 7.5% 6.1%
</Table>
Revenues for the Construction Products group increased to $136.8 million from
$131.0 million, while operating profit increased to $10.2 million from $8.0
million due to increased government spending on transportation improvements.
INLAND BARGE GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 54.3 $ 47.6
Operating profit ....................................... $ 6.6 $ 2.8
Operating profit margin ................................ 12.2% 5.9%
</Table>
Revenues for the Inland Barge group increased to $54.3 million from $47.6
million. Operating profit increased to $6.6 million from $2.8 million. The
improvement in operating profit was due mainly to a change in product mix,
increased operating efficiency, and lower material costs.
INDUSTRIAL PRODUCTS GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 50.1 $ 40.4
Operating profit (loss) ............................... $ 2.3 $ (0.6)
Operating profit (loss) margin ......................... 4.6% (1.5)%
</Table>
Industrial Products group revenues increased to $50.1 million from $40.4 million
while operating profit increased to $2.3 million from a loss of $0.6 million.
The increase in revenues and operating profit was primarily due to increased LPG
tank demand.
27
RAILCAR LEASING & MANAGEMENT SERVICES GROUP
<Table>
<Caption>
Three Months
Ended
March 31,
--------------------
2000 1999
-------- --------
(in millions)
Revenues ............................................... $ 35.9 $ 48.4
Operating profit ....................................... $ 13.8 $ 14.9
Operating profit margin ................................ 38.4% 30.8%
</Table>
Railcar Leasing & Management Services group revenues and operating profit
decreased in the current quarter due primarily to decreased sales of railcars
from the lease fleet. Lease fleet sales in the current quarter were $19.7
million compared to $29.2 million in the prior quarter. Operating profit on
lease fleet sales were $5.5 million in the current quarter compared to $4.8
million in the prior quarter.
ALL OTHER
Operating loss in All Other for the current quarter was $3.0 million compared to
operating profit of $0.2 million for the same quarter of the previous year. The
increased loss was primarily attributable to operating losses in our e-commerce
initiatives.
28