Trinity Drops After 2016 Profit Forecast Disappoints Investorsby
Trinity Industries Inc. plunged as much as 17 percent in late trading after it said per-share profit would fall to less than half of last year’s, hurt by weaker demand for railroad tank cars needed to carry crude oil.
Earnings will be $2 to $2.40 a share in 2016, which “assumes the current weak market conditions will continue throughout the year,” Trinity said in a statement Thursday. Analysts had been anticipating $3.64, with the estimates ranging from $3.10 to $4.12.
Trinity said railcar deliveries this year are expected to be about 27,000, a decline of about 20 percent from last year’s record level. Drilling has dried up after oil prices tumbled to below $30 a barrel from more than $100 in 2014, causing a decline in demand for tank cars.
The shares plunged to as low as $17.61 in trading after the market closed in New York, down from the closing price of $21.12.