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8-K - FORM 8-K - GREENBRIER COMPANIES INC | v55977e8vk.htm |
Exhibit 99.1
For release: May 28, 2010, 6:00 am EDT
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Contact: | Mark Rittenbaum 503-684-7000 |
Gunderson reduces marine production rates
Lake Oswego, Oregon, May 28, 2010 Gunderson LLC, a subsidiary of The Greenbrier
Companies [NYSE:GBX], announced today that it has implemented a 4-day work week at its marine barge
operation, to reduce production rates. The move, taken this week, affects close to 400 employees
dedicated to marine barge manufacturing; the work schedule of the nearly 300 workers dedicated to
Gundersons rail operations is unaffected by the decision.
As a result of recent uncertainties in the marine market and the City of Portlands recent
adoption of the River Plan, which is scheduled to become effective January 1, 2011, it is prudent
for us to adjust production until there is more clarity, said William A. Furman, president and
chief executive officer of Greenbrier. Increased market uncertainty due in part to the oil spill
in the Gulf of Mexico and delays in oil drilling projects have affected our customers, causing them
to become more cautious in their near term outlook and to delay decisions. In addition, the
recently adopted River Plan will increase regulation, bureaucracy, and costs of operating the
Gunderson facility. We, along with many other industrial companies located on the Portland
waterfront, are appealing the River Plan with the State Land Use Board of Appeals. In the
meantime, however, the Plan creates uncertainty and caution on our part, contributing to our
decision.
Furman concluded, Over the next several months, we hope to gain greater clarity in our marine
operations. At such time, we will reevaluate our production manning levels to determine whether to
continue production at current rates, resume at higher rates, or invoke additional adjustments
including layoffs.
Gunderson, located at a deepwater facility on the Willamette River for over 70 years,
manufactures railcars and marine barges. It is an active participant in the Working Waterfront
Coalition (WWC), an organization of businesses concerned about the environmental health and
economic vitality of the Portland harbor. The Company currently employs close to 700 personnel,
down from peak employment of about 1,200. Gunderson was established by brothers Al and Chet
Gunderson in 1919 and recently celebrated its 25th Anniversary under Greenbrier
ownership.
About Greenbrier Companies
Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of
transportation equipment and services to the railroad industry. The Company builds new railroad
freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its
U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts
at 37 locations across North America. Greenbrier builds new railroad freight cars and refurbishes
freight cars for the European market through both its operations in Poland and various
subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and
performs management services for approximately 223,000 railcars.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This
release may contain forward-looking statements, including certain statements related to the
offering. Greenbrier uses words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statements. These forward-looking statements
should be evaluated together with additional information about Greenbriers business, markets,
conditions and other uncertainties which could affect Greenbriers future performance. Factors
that could cause actual results to differ materially from those indicated by such forward-looking
statements are described in greater detail under the heading Risk Factors contained in our
prospectus supplement and in our periodic SEC filings, including our Annual Report on Form 10-K for
the fiscal year ended August 31, 2009 and our Quarterly Report on Form 10-Q for the fiscal quarter
ended February 28, 2010. Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect managements opinions only as of the date hereof. We
undertake no obligation to revise or publicly release the results of any revision to these
forward-looking statements.