New facility expected to enhance customer service levels by
increasing captive maintenance solutions
DALLAS--(BUSINESS WIRE)--
Trinity Industries, Inc. (NYSE: TRN) (“Trinity”) announced today that
its wholly owned subsidiary, TrinityRail Maintenance Services, Inc.
(“TRMS”), has agreed to purchase land for the construction of a new
railcar maintenance services facility in Shell Rock, Iowa.
TRMS has selected the 230-acre site for its expansion, which is expected
to employ over 250 people following Trinity’s planned capital investment
of approximately $60 million in the Butler County, Iowa, community. Upon
completion, the new facility will provide a full range of railcar
services, including repairs and maintenance, coatings, cleaning,
inspections, and testing. The site’s co-location with the Iowa Northern
Railroad and optimal access to the Class-1 railroad network, including
strategic access to the upper Midwest, were significant factors in
Trinity’s decision to build a new railcar maintenance facility in Shell
Rock.
“TrinityRail Maintenance Services, Inc. is proud to announce the
development of a new facility that will provide railcar maintenance and
services. This full service facility will expand our internal network
and operational flexibility in a key geographic location,” said Eric
Marchetto, Senior Vice President and Group President of TrinityRail®.
“This expansion will enhance our customers’ experience by delivering
best-in-class turn times for maintenance events within the railcar
industry, as well as consistent quality and compliance standards within
our maintenance network.”
Mr. Marchetto continued, “This investment will help us achieve our
near-term goal to internally service approximately 50% of our
maintenance events for our growing fleet of 123,000 owned and managed
railcars. This initiative is also aligned with our focus to employ
various operational levers to improve the financial returns of our
business.”
The Company anticipates the new facility to be operational by the end of
2020 and to be accretive to consolidated financial results by the end of
2021, including anticipated start-up costs. The development is not
expected to impact the Company’s 2019 earnings per share guidance.
Approximately half of the investment for the new facility is expected to
be incurred in 2019 and was not included in the Company’s prior 2019
guidance for capital expenditures.
Company Description
Trinity Industries, Inc., headquartered in Dallas, Texas, owns
businesses that are leading providers of rail transportation products
and services in North America. Our rail-related businesses market their
railcar products and services under the trade name TrinityRail®.
The TrinityRail integrated platform provides railcar leasing and
management services, as well as railcar manufacturing, maintenance and
modifications. Trinity also owns businesses engaged in the manufacture
of products used on the nation’s roadways and in traffic control, as
well as logistical and transportation businesses that provide support
services to a variety of industrial manufacturers. Trinity reports its
financial results in three principal business segments: the Railcar
Leasing and Management Services Group, the Rail Products Group, and the
All Other Group. For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts, are
“forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements about Trinity's estimates, expectations, beliefs, intentions
or strategies for the future, and the assumptions underlying these
forward-looking statements, including, but not limited to, future
financial and operating performance, future opportunities and any other
statements regarding events or developments that Trinity believes or
anticipates will or may occur in the future. Trinity uses the words
“anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,”
“forecasts,” “may,” “will,” “should,” “guidance,” “projected,”
“outlook,” and similar expressions to identify these forward-looking
statements. Forward-looking statements speak only as of the date of this
release, and Trinity expressly disclaims any obligation or undertaking
to disseminate any updates or revisions to any forward-looking statement
contained herein to reflect any change in Trinity’s expectations with
regard thereto or any change in events, conditions or circumstances on
which any such statement is based, except as required by federal
securities laws. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
historical experience or our present expectations, including but not
limited to risks and uncertainties regarding economic, competitive,
governmental, and technological factors affecting Trinity’s operations,
markets, products, services and prices, and such forward-looking
statements are not guarantees of future performance. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see “Risk
Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on
Form 10-K for the most recent fiscal year, as may be revised and updated
by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current
Reports on Form 8-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190520005468/en/
Jessica Greiner
Vice President, Investor Relations and
Communications
Trinity Industries, Inc.
(Investors)
214/631-4420
(Media Line) 214/589-8909
Source: Trinity Industries, Inc.