Greenbrier reports reducing debt by more than $100 million during third quarter

By Jennifer Lanning Drey

Portland, Ore., July 10 - Greenbrier Cos., Inc. reduced debt by more than $100 million during the third quarter, Mark Rittenbaum, Greenbrier's treasurer, said Tuesday during the company's quarterly earnings call.

"We remain quite liquid," Rittenbaum said.

Greenbrier had cash and cash equivalents of $28.32 million at May 31, compared with $142.90 million at Aug. 31, 2006, according to a company press release.

"We are pleased with the substantial operating cash flow generated during the third quarter and in the corresponding progress made in reducing net debt balances by more than $100 million during the quarter," Rittenbaum said in the release.

Also during the quarter, Greenbrier continued to work toward diversifying its product mix and on other strategic and tactical objectives including improving efficiency through lean manufacturing and global sourcing, Greenbrier chief executive officer William Furman said during the call.

Additional areas of focus during the quarter included financial performance, enhancing liquidity and integrating recent acquisitions, he said.

"Greenbrier is well-poised to take advantage of the opportunities that exist in our sector, and we will continue to pursue patterns of balanced growth," Furman said.

When asked about potential uses for the company's balance sheet going forward, Greenbrier officials said they continue to look at strategic alternatives for growth and will work to diversify some of the company's product offerings in the manufacturing segment as well as to participate in markets where not currently active.

The company said each of its three business segments realized revenue and margin growth in the third quarter, as compared to the first two quarters of the year.

"We had a very strong quarter, and we anticipate continuing operating momentum in the fourth quarter," Rittenbaum said.

Greenbrier is a Lake Oswego, Ore.-based is a supplier of transportation equipment and services to the railroad industry.

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