Element Financial acquires $127MM Trinity railcars in Q1
U.S.--Trinity Industries noted reported that its Railcar Leasing and Management Services group Q1/15 revenue was a record $166.1 million compared to $150.2 million in Q1/14 due to higher average rental rates and net fleet additions. In addition, the group recognized revenue of $78.7 million from sales of railcars from the lease fleet owned for less than a year during the first quarter compared to $292.9 million in the first quarter of 2014. Operating profit for this group was $122.8 million in the first quarter of 2015 compared to operating profit of $230.3 million in the first quarter of 2014 due to a record level of leasing and management operating profit offset by fewer sales of railcars from the lease fleet in the first quarter of 2015.
Trinity said during Q1/15, the company sold $127.0 million of railcars to Element Financial under a strategic alliance launched in 2013.
Since the fourth quarter of 2013 when the alliance was announced, the leasing group has completed $1.11 billion of leased railcar sales to Element and anticipates fulfilling the $2 billion alliance by the end of 2015.