Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, March 29, 2019

Article Excerpt

TRINITY INDUSTRIES INC., $21.73, symbol TRN on New York, makes tank and freight railcars for the railroad industry. It also produces metal guardrails for highways and large-volume roadways. In addition, it has a leasing group with a fleet of more than 122,000 railcars. In December 2017, the company announced it would spin off its infrastructure-related businesses as Arcosa Inc. (see next Hotline item). The actual split was completed on November 1, 2018. Trinity investors received one Arcosa share for every three shares they owned. In the three months ended December 31, 2018, Trinity’s overall revenue rose 19.4%, to $735.0 million from $615.4 million a year earlier. Sales rose as a result of significantly higher railcar deliveries. Excluding one-time items, earnings in the latest quarter were $40.2 million, or $0.26 a share. That was 24.9% lower than the $53.5 million, or $0.34 a share, it made a year earlier, largely due to higher costs. However, the earnings beat the consensus estimate of $0.23. Trinity continues…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.