Greenbrier Cos Inc, one of the world's premier railcar manufacturers had a bumper year last year when there was an increase in the demand for oil tank cars. Now, in a lean period, the company is seeking to sell off non-core business assets after delivery demand fell again for the third straight quarter.
The share values of the company fell by 8% in early day trading but recovered to just 3% decline by midday.
The company previoulsy declined offers from activist investor Carl Icahn, who wanted to merge Greenbrier with its rival American Railcar Industries. Despite such refusal, the two are still open to discussion especially since Carl Icahn has a 3.41% shareholding in Greenbrier as of December's regulatory filings.
The ralicar manufacturer is intending to sell off its wheel services unit as well as its refurbishment and parts business units. These business units accounted for about a quarter of the firm's revenues for 2012.
Join the Conversation