Greenbrier Announces Work Force Reductions and Other Cost-Cutting Measures; Company Expects $16 Million in Annualized Savings

LAKE OSWEGO, Ore., Feb. 11 /PRNewswire-FirstCall/ — The Greenbrier
Companies (NYSE: GBX) announced today it is downsizing its work force,
implementing wage reductions, and introducing other cost-cutting measures in
response to current macroeconomic conditions and continued softness in the
railroad supply market. These actions will result in approximately
$16 million of annualized savings in general and administrative expense
($7 million) and cost of revenue ($9 million). This reduction is in addition
to about $10 million of reductions realized from initiatives undertaken in the
Company’s fiscal 2008.

The layoffs and early retirements this week will affect about 150
employees, most of whom are part of factory overhead at the Company’s
Gunderson and Concarril new railcar facilities and at various Greenbrier Rail
Services railcar repair and refurbishment shop locations. Staff reductions
are also taking place at the Company’s corporate offices in Lake Oswego and
other office locations in North America. Further cost reductions will also be
implemented at the Company’s European new railcar operations.

William A. Furman, president & chief executive officer, said, “We are
taking firm action and will continue to make the right decisions in a
proactive fashion. Such decisions are never easy and are never taken lightly.
I am saddened by how these necessary actions will affect the lives of our
employees, their families and the local communities in which we operate.”

Furman continued, “Currently, we are producing new railcars on five
production lines at our three facilities in North America: GIMSA and
Concarril in Mexico, and Gunderson in Portland, Oregon. Gunderson also
performs railcar refurbishment work and marine barge manufacturing. Based on
current market demand, it is unlikely we will be able to continue to support
current levels of new railcar production. We will likely consolidate
production and temporarily shutter one of our Mexico facilities this summer
until new railcar demand improves. This move could affect about 700 workers.”

“Depending on the outcome of certain negotiations with our joint venture
partner at GIMSA, and with a major customer, we expect to continue production
on both production lines at GIMSA and shutter production at Concarril. We are
completing negotiations with our partner regarding an option to increase our
ownership in this venture, located in Monclova, Mexico. Railcars currently
being built for one of our major customers at GIMSA may be surplus to their
current plans and needs in the current market environment. We are discussing a
possible renegotiation of the contract to our mutual benefit. We believe our
contracts give us adequate protection in the event of renegotiation or
cancellation.”

Furman concluded, “We will continue to operate our Gunderson facility in
Portland, Oregon, which has a strong marine backlog. If market demand does not
support continuous new railcar production, about 70 workers will be moved to
marine and railcar refurbishment & repair in late spring, and approximately
150 workers would be furloughed or laid off.”

Greenbrier (http://www.gbrx.com), headquartered in Lake Oswego, Oregon, is
a leading supplier of transportation equipment and services to the railroad
industry. The Company builds new railroad freight cars in its three
manufacturing facilities in the U.S. and Mexico and marine barges at its U.S.
facility. It also repairs and refurbishes freight cars and provides wheels and
railcar parts at 38 locations across North America. Greenbrier builds new
railroad freight cars and refurbishes freight cars for the European market
through both its operations in Poland and various subcontractor facilities
throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs
management services for approximately 137,000 railcars.

SOURCE The Greenbrier Companies