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Genesee & Wyoming Inc. (GWI) has revised its projections for second-quarter financial results, and not for the better.

The company now expects revenue to total about $130 million vs. a previous forecast range of $140 million to $145 million, primarily because same-railroad traffic was down 21.4 percent in April and May combined.

GWI also expects second-quarter earnings from continuing operations to range between 35 cents and 37 cents per diluted share instead of a previously projected 45 cents per diluted share. In addition, the company’s operating ratio will range between 81 and 83 vs. a previous expectation of between 79 and 80, said GWI, which owns and operates 63 regionals and short lines in the United States, Canada, Australia and the Netherlands, and owns a minority interest in a Bolivian railroad.

In response to the revenue decline, the company has furloughed an additional 70 employees since the end of the first quarter, bringing the year-to-date total to 234, or about 9 percent of the workforce. GWI also reduced its active locomotive fleet by an additional 17 units since March 31. Now, 64 locomotives — or about 12 percent of the entire fleet — are stored.

For more information on GWI’s operational strategy of late, follow this link to read “From the Inside Out,” which appears in Progressive Railroading’s June issue.