According to Fitch Ratings, the answer is a resounding YES.
In an article addressing that very question on Business Wire, “While the recent guardrail judgment against Trinity Industries Inc. (TRN) could potentially weaken the company’s credit metrics if payment is required in the near term, Fitch Ratings expects TRN’s operating performance will enable it to rebuild metrics quickly in such a scenario. Fitch believes TRN has the capacity to fund litigation payments of as much as $600 million without borrowing, which is somewhat less than the amount of the $682 million judgment.”
According to Fitch, manufacturing for Trinity will increase by nearly $90 million to $250 million in 2015 from 2014 and operating revenues will also increase from incremental revenue due to the August 2014 acquisition of Meyer Steel Structures. According to Business Wire “TRN’s liquidity at March 31, 2015 included $691 million of consolidated cash and short-term marketable securities, most of which is held at the manufacturing businesses. In addition, $336 million was available under a revolving credit facility. In May 2015, TRN replaced the existing $425 million facility scheduled to mature in October 2016 with a $600 million five-year facility. There are no material scheduled long-term debt maturities scheduled prior to 2024 at the manufacturing business.”
Click here to read the full Business Wire article: Fitch: Timing of Funding a Possible Concern on Trinity Guardrail Judgment
So given the pattern of corporations who are held accountable by lower Courts for misconduct, it is likely Trinity will seek refuge from the Court of appeal which at the very lest will buy it time while it improves its bottom line. In the meantime, cases against Trinity for injuries due to defects in its guardrails will move through the Courts in various states.
This office presently represents a then 18-year-old man who suffered horrific burns in Contra Costa County when the vehicle he was riding in struck the end of the ET Plus guardrail and was redirected down a hillside into another collision that horribly burned his entire body. We are in extensive discovery against Trinity at this time. If you wish any information about litigating a case involving this guardrail system, please contact Thomas Brandi at firstname.lastname@example.org or call 800-481-1615.
Trinity is a registered trademark of Trinity Industries Inc. The use of this trademark is solely for product identification and informational purposes. Trinity Industries Inc. is not affiliated with this website, and Trinity Industries Inc has no affiliation with The Brandi Law Firm. Nothing on this site has been authorized or approved by Trinity Industries Inc.