The Greenbrier Companies reported net earnings for the third fiscal quarter were $35.4 million on revenue of $612.9 million compared to $42.8 million on revenue of $714.6 million a year earlier.

Greenbrier noted equipment on operating leases was $232.8 million at the end of the third fiscal quarter, down about 10% from $258.0 million a year earlier.

The railcar maker said new railcar backlog as of May 31, 2016 was 31,200 units with an estimated value of $3.6 billion compared to 34,100 units with an estimated value of $4.0 billion as of February 29, 2016.

Greenbrier said new railcar deliveries totaled 4,300 units for the quarter, compared to 4,500 units for the quarter ended February 29, 2016.

William A. Furman, chairman and CEO said, “We posted strong operational and financial results in the quarter, particularly in light of growing industry headwinds. Profitability was solid with aggregate gross margin at 20.7%. I am proud of our results so far this year and pleased that we expect to achieve full year results within our range of expectations.”

Furman added, “As North American rail markets adjust to lower railcar loadings and increased rail velocity, we will focus on this core business while growing our earnings base in select international markets where long-term demand for railcars is strong. We achieved an important international milestone by beginning production of 1,200 tank cars for Saudi Railway Company’s October 2015 order. I am also pleased about the recently announced extension of our partnership in Brazil and strongly believe that global markets will be a key driver of future growth.”

Furman continued, “Greenbrier’s backlog remains strong, with non-energy related railcars representing over 80% of our total backlog. The North American energy sector is contending with a surplus of railcars. We continue to engage with our customers to identify solutions for the 5,000 sand cars in our backlog impacted by this over-supply issue.”