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On Jan. 13, The Greenbrier Cos. reported net income of $4.2 million for first-quarter fiscal-year 2004 (ending Nov. 30), compared with a $700,000 net loss in first-quarter FY2003 and net income of $3.3 million in fourth-quarter FY2003. Quarterly revenue of $112.1 million increased 16 percent compared with first-quarter FY2003's $96.9 million.

Improving production rates, margins and operating efficiencies are driving financial results, Greenbrier officials believe.

During the quarter, rail-car deliveries increased 45 percent to 1,700 units. The company's backlog rose, too. At quarter's end, Greenbrier's North American and European rail-car backlogs reached 9,900 units valued at $480 million and 1,600 units valued at $140 million, respectively, compared with 9,000 units valued at $440 million and 1,700 units valued at $140 million on Aug. 31, 2003.

"Our lease fleet of 12,000 owned rail cars realized 95 percent 'on lease' utilization for the quarter, up from 92 percent at the end of the prior quarter," said Greenbrier President and Chief Executive Officer William Furman in a prepared statement. "We intend to continue to add to our lease fleet during the year and to pursue other accretive investments."

Greenbrier recently reached an agreement with private investors to recapitalize its European operations. The deal — subject to third-party debt financing, final documentation, Polish government approval and other conditions — might be completed during second-quarter FY2004.

"After the recapitalization, Greenbrier will maintain a small minority interest and assume a passive role," said Furman.