Genesee & Wyoming Mexico unit to shut railroad operations

06/25/07 - newratings.com

NEW YORK, June 25 (newratings.com) – Railroad operator Genesee & Wyoming Inc (GWR) Monday announced that its Mexican unit plans to shut down its rail operations and terminate its 30-year concession agreement with the Mexican government.

Genesee & Wyoming mentioned that it will incur a charge of $12 million, or $0.30 per share, in 2007, most of which will be recorded in the second quarter. The charge will include severance costs, wind-down expenses, non-cash write-offs of currency translation and other tax impacts. The Mexican subsidiary employs 407 people and will discontinue its rail services over the next four weeks, Genesee & Wyoming said.