LeManna/iStock via Getty Images The Greenbrier Companies (NYSE:GBX) posted a big bottom line miss for its fiscal first quarter amid elevated costs and continued supply chain complications. For the first quarter, the Oregon-based manufacturer posted $0.05 in adjusted EPS, missing expectations by a wide margin, despite notching $766.5M in revenue and exceeding estimates by $26.63M. Gross margins contracted 430 basis points from the prior quarter as well. On a GAAP basis, the company posted a $0.51 loss for the quarter driven by a $24M non-cash impairment charge related to the shut down of its Portland manufacturing operation. “Greenbrier’s business momentum continued in our fiscal first quarter, driven by a strong commercial performance that led to a book-to-bill of 1.2x,” CEO Lorie Tekorius commented. “However, as new railcar production ramped, manufacturing margins were impacted by higher costs for outsourced parts, material shortages, supplier issues and lingering supply chain complications.” She added that management is working diligently to “meaningfully reduce” input costs and take control of certain aspects of its supply chain to remedy the issues. Included in these steps is the shutdown of manufacturing in Portland. The company expects these efforts to continue through the fourth quarter of the current fiscal year. “Managing through near-term economic uncertainty, we remain focused on execution and are confident in our outlook as railcar demand and our production efficiency normalizes through the fiscal year,” Tekorius concluded. “In the meantime, Greenbrier is well-positioned with strong liquidity and a $3.4B manufacturing backlog.” The company expects 22,000 to 24,000 units delivered for the full year, driving $3.2B to $3.6B in revenue. The latter figure is in-line with consensus estimates set at $3.32B. Proceeds from equipment sales are expected to be approximately $110M. Shares of the railcar manufacturer fell 8.97% shortly after the results were posted. Dig into the details of the results.
