Trinity Industries (TRN) Wind Turbine Biz Continues to Grow

.. and that’s the positive.  Trinity Industries (TRN) reported awful earnings after the bell today but you wouldn’t know it by looking at the press release headline: Trinity Reports Solid 4th Quarter Results.  You wouldn’t know it by reading the comments of the CEO either: “Our fourth quarter results demonstrated the positive aspects of the diversification of our portfolio of businesses during a tough economy.”  Oh yeah?

Here are the facts:

The company matched analyst expectations of .62/share but revenues were well short of expectations of $1.03 billion at $883.4 million with the company hit the hardest in its heavy construction segment.  That’s represents a 36% plunge in profits from the year ago period and a 20% cut in revenues from the year ago period, so you tell me how this is a solid quarter.

On the bright side, the wind turbine business continues to grow.  Sales of structural wind towers account for 66% of the total revenues of it’s Energy Equipment division which grew 14% last quarter.  The order backlog by the end of 08 for structural wind towers has doubled from the year ago period.

This is a stock that has been beaten mercilessly in the last few months so much of this earnings hit has been priced in already.  I actually think this stock might be an interesting play down in the 9 – 10 area but it could take 6 months to a year for it to begin a new up trend. 

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