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Trinity Industries (NYSE:TRN) on Tuesday said its Q3 railcar deliveries came in more than 600 units below its guidance due to border issues between the U.S. and Mexico.
TRN stock slid 7% to $21.68 after hours.
The U.S. Customs and Border Protection Agency (CBP) on September 20 suspended U.S. bound cross-border rail traffic in Eagle Pass, Texas, which is the primary border crossing used by Trinity (TRN) for railcar deliveries from its manufacturing facilities.
“According to the CBP, this action was taken to assist U.S. Border Patrol due to the recent influx of migrants at the border. While rail traffic operations resumed on September 23, there are still substantial congestion and rail traffic challenges,” TRN said in a statement.
The company said it delivered 4,325 new railcars in Q3, 685 units below its own projection.
Trinity (TRN) said it was evaluating alternatives for rail and truck transportation between Mexico and the U.S.
“Increased state vehicle inspections have resulted in truck traffic congestion, negatively impacting the Company’s supply chain. Continued rail and truck congestion at the border will negatively impact the Company’s deliveries and supply chain until the congestion is resolved,” TRN added.
The company will give an update on the situation and its financial impact on its Q3 earnings call, scheduled for November 2.
