Genesee & Wyoming Reports Traffic for December 2017

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for December 2017 and the fourth quarter of 2017.

G&W’s traffic in December 2017 was 255,199 carloads, a decrease of 15,344 carloads, or 5.7%, compared with December 2016. G&W’s same-railroad traffic in December 2017 was 254,700 carloads, a decrease of 15,843 carloads, or 5.9%, compared with December 2016.

G&W’s traffic in the fourth quarter of 2017 was 802,428 carloads, an increase of 35,878 carloads, or 4.7%, compared with the fourth quarter of 2016. G&W’s same-railroad traffic in the fourth quarter of 2017 was 740,816 carloads, a decrease of 25,734 carloads, or 3.4%, compared with the fourth quarter of 2016.

The table below sets forth summary total carloads by segment for December 2017 and December 2016.

Segment				December 2017			December 2016			Change			% Change
North American Operations				127,904			131,118			(3,214)			(2.5%)
Australian Operations(1)				47,465			53,200			(5,735)			(10.8%)
U.K./European Operations				79,830			86,225			(6,395)			(7.4%)
Total G&W Operations				255,199			270,543			(15,344)			(5.7%)
Carloads from New Railroads				499
Same-railroad carloads				254,700			270,543			(15,843)			(5.9%)
(1) 51.1% owned by G&W.

December 2017 Highlights by Segment

• North American Operations: Traffic in December 2017 was 127,904 carloads, a decrease of 2.5% compared with December 2016, including carloads from the Heart of Georgia Railroad, Inc. (HOG), which was acquired on May 31, 2017. On a same-railroad basis, North American traffic decreased 2.8%, primarily due to decreased coal & coke and metals traffic.
• Australian Operations: Traffic in December 2017 was 47,465 carloads, a decrease of 10.8% compared with December 2016, primarily due to decreased coal & coke and agricultural products traffic. Carload information for G&W’s 51.1% owned Australian Operations is presented on a 100% basis.
• U.K./European Operations: Traffic in December 2017 was 79,830 carloads, a decrease of 7.4% compared with December 2016, primarily due to decreased intermodal traffic in the U.K. and Continental Europe and coal & coke traffic in the U.K., partially offset by increased minerals & stone traffic in the U.K. and Poland.

The table below sets forth North American Operations carload information for December 2017 and December 2016 by commodity group.

North American Operations:				December 2017			December 2016			Change			% Change
Agricultural Products				17,153			18,408			(1,255)			(6.8%)
Autos & Auto Parts				2,787			2,902			(115)			(4.0%)
Chemicals & Plastics				13,640			14,170			(530)			(3.7%)
Coal & Coke				18,435			20,666			(2,231)			(10.8%)
Food & Kindred Products				4,871			5,077			(206)			(4.1%)
Intermodal				815			652			163			25.0%
Lumber & Forest Products				11,723			10,821			902			8.3%
Metallic Ores				1,250			1,591			(341)			(21.4%)
Metals				10,567			12,089			(1,522)			(12.6%)
Minerals & Stone				14,929			13,780			1,149			8.3%
Petroleum Products				8,693			8,339			354			4.2%
Pulp & Paper				14,084			13,865			219			1.6%
Waste				3,858			3,606			252			7.0%
Other				5,099			5,152			(53)			(1.0%)
Total carloads				127,904			131,118			(3,214)			(2.5%)
Carloads from New Railroads(1)				499
Same-railroad carloads				127,405			131,118			(3,713)			(2.8%)

(1) Total carloads from HOG, which contributed 337 carloads of lumber & forest products traffic, and 162 carloads from all other commodities.

The following highlights relate to North American same-railroad traffic, excluding traffic from HOG, which was acquired on May 31, 2017.

• Coal & coke traffic decreased 2,231 carloads, or 10.8%, primarily due to decreased overhead shipments of utility coal in G&W’s Midwest Region.
• Metals traffic decreased 1,522 carloads, or 12.6%, primarily due to decreased shipments of scrap steel in G&W’s Southern and Northeast regions.
• All remaining traffic increased by a net 40 carloads.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for December 2017 and December 2016 by commodity group.

Australian Operations(1):				December 2017			December 2016			Change			% Change
Agricultural Products				3,234			5,625			(2,391)			(42.5%)
Coal & Coke				31,940			35,203			(3,263)			(9.3%)
Intermodal				5,076			5,200			(124)			(2.4%)
Metallic Ores				1,752			1,796			(44)			(2.4%)
Minerals & Stone				5,441			5,359			82			1.5%
Petroleum Products				22			17			5			29.4%
Total carloads				47,465			53,200			(5,735)			(10.8%)
(1) 51.1% owned by G&W.

• Coal & coke traffic, which operates primarily under a take-or-pay contract structure, decreased 3,263 carloads, or 9.3%, largely due to industrial action at Hunter Valley coal mines.
• Agricultural products traffic decreased 2,391 carloads, or 42.5%, primarily due to a lower 2017-18 harvest in South Australia.
• All remaining traffic decreased by a net 81 carloads.

The table below sets forth U.K./European Operations carload information for December 2017 and December 2016 by commodity group.

U.K./European Operations:				December 2017			December 2016			Change			% Change
Agricultural Products				354			501			(147)			(29.3%)
Coal & Coke				1,443			4,747			(3,304)			(69.6%)
Intermodal				63,412			69,379			(5,967)			(8.6%)
Minerals & Stone				14,621			11,598			3,023			26.1%
Total carloads				79,830			86,225			(6,395)			(7.4%)

• Intermodal traffic decreased 5,967 carloads, or 8.6%, primarily due to weaker shipments in the U.K. and Continental Europe.
• Coal & coke traffic decreased 3,304 carloads, or 69.6%, primarily due to decreased shipments in the U.K.
• Minerals & stone traffic increased 3,023 carloads, or 26.1%, primarily due to increased shipments in the U.K. and Poland.
• All remaining traffic decreased by a net 147 carloads.

Fourth Quarter of 2017 Traffic

The table below sets forth summary total carloads by segment for the fourth quarter of 2017 and the fourth quarter of 2016.

Segment				Q4 2017			Q4 2016			Change			% Change
North American Operations				395,422			402,939			(7,517)			(1.9%)
Australian Operations(1)				132,999			82,389			50,610			61.4%
U.K./European Operations				274,007			281,222			(7,215)			(2.6%)
Total G&W Operations				802,428			766,550			35,878			4.7%
Carloads from New Railroads				61,612
Same-railroad carloads				740,816			766,550			(25,734)			(3.4%)
(1) 51.1% owned by G&W.

The table below sets forth North American Operations carload information for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

North American Operations:				Q4 2017			Q4 2016			Change			% Change
Agricultural Products				51,679			57,669			(5,990)			(10.4%)
Autos & Auto Parts				9,541			8,321			1,220			14.7%
Chemicals & Plastics				43,041			43,680			(639)			(1.5%)
Coal & Coke				53,614			63,058			(9,444)			(15.0%)
Food & Kindred Products				15,216			15,905			(689)			(4.3%)
Intermodal				2,525			1,246			1,279			NM
Lumber & Forest Products				35,836			33,450			2,386			7.1%
Metallic Ores				4,085			4,814			(729)			(15.1%)
Metals				32,392			34,134			(1,742)			(5.1%)
Minerals & Stone				53,552			48,756			4,796			9.8%
Petroleum Products				24,593			26,308			(1,715)			(6.5%)
Pulp & Paper				41,041			39,578			1,463			3.7%
Waste				12,620			11,696			924			7.9%
Other				15,687			14,324			1,363			9.5%
Total carloads				395,422			402,939			(7,517)			(1.9%)
Carloads from New Railroads(1)				5,246
Same-railroad carloads				390,176			402,939			(12,763)			(3.2%)

(1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include P&W (October 2017) and HOG. These railroads contributed 307 carloads of autos & auto parts traffic, 544 carloads of chemicals & plastics traffic, 891 carloads of intermodal traffic, 1,135 carloads of lumber & forest products traffic, 1,315 carloads of minerals & stone traffic and 1,054 carloads from all other commodities.

The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

Australian Operations(1):				Q4 2017			Q4 2016			Change			% Change
Agricultural Products				8,105			10,661			(2,556)			(24.0%)
Coal & Coke				88,306			35,203			53,103			NM
Intermodal				14,695			15,328			(633)			(4.1%)
Metallic Ores				5,344			4,625			719			15.5%
Minerals & Stone				16,478			16,508			(30)			(0.2%)
Petroleum Products				71			64			7			10.9%
Total carloads				132,999			82,389			50,610			61.4%
Carloads from New Railroads(2)				56,366
Same-railroad carloads				76,633			82,389			(5,756)			(7.0%)

(1) 51.1% owned by G&W.

(2) Total carloads from GRail (October and November 2017), which was acquired on December 1, 2016 and contributed 56,366 carloads of coal & coke traffic.

The table below sets forth U.K./European Operations carload information for the fourth quarter of 2017 and the fourth quarter of 2016 by commodity group.

U.K./European Operations:				Q4 2017			Q4 2016			Change			% Change
Agricultural Products				1,323			1,058			265			25.0%
Coal & Coke				4,070			13,528			(9,458)			(69.9%)
Intermodal				220,881			225,090			(4,209)			(1.9%)
Lumber & Forest Products				-			158			(158)			NM
Metallic Ores				-			108			(108)			NM
Minerals & Stone				47,733			41,280			6,453			15.6%
Total carloads				274,007			281,222			(7,215)			(2.6%)

Other

The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.

Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

About G&W

G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

• G&W’s seven North American regions serve 41 U.S. states and four Canadian provinces and include 115 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
• G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

For more information, visit gwrr.com.

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