Comment by Arjay0001on Jan 10, 2015 4:10pm
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Post# 23305963
RE:tankers
RE:tankers
The recent conference call indicated that there was no cutback whatever to their tanker orders. The sole exception was one small customer who wanted a delay in deliveriers, but this was offset by a larger customer who wanterd earlier delivery. They indicated that the oil price seemed to have no apparent effect. What would greatly increase their tanker business would be the release of the new saftey specifications that would be required in the US. They expected this in the present quarter. (I assumed that customers wanted these before deciding between retrofitting existing units or purchasing new ones.) GBX are currently making state of the art models.
I think you are absolutely correct in your perception that they will have a huge increase in tanker business, but as they indicated, all they need is the release of the safety regulations. At the same time even now they have a new car (all types) backlog that extends into 2018..Of course they also do retrofitting of older cars.
They indicated that the market also showed no pullpack for fracking sand hoppers.
Where they have seen an increased interest, which they attributed to lower oil prices, was in chemical containers.
I hope this helps.