Shares of railcar maker Greenbrier Companies (GBX) are rising in an otherwise down day for broader market indices despite reporting second quarter results that were below expectations. The company noted that it sees continued U.S. demand as the economy continues to have “strong legs.”

WHAT’S NEW: The company’s Q2 results missed on the top and bottom line amid a 70% drop in new rail car orders from Q2 of last year. The company reported Q2 profit of $44.9M, or $1.41 per share, compared with profit of $50.4M, or $1.57 per share, in the year ago quarter. Greenbrier’s revenue increased to $669.1M from $630M in the year ago quarter. Analysts were expecting EPS for the company of $1.56 and revenue of $729.85M. Greenbrier also said that it had diversified orders for new railcars of 3,000 in Q2 compared with 10,100 in last year’s Q2. Gross margin in Q2 was 20%, which is consistent with the company’s goal of at least 20% gross margin by the second half of 2016.

WHAT’S NOTABLE: The Lake Oswego, Oregon, railcar maker narrowed its expectations for fiscal year 2016 to $5.70-$6.10 a share for the year from a previous forecast of $5.65-$6.15 a share. William Furman, the company’s CEO, said the railcar maker has transformed its business model over the past five years in response to lower industry demand and as customer needs “shift to different railcar types.” Furman added, “Greenbrier is adapting well to the present industry and economic climate. Greenbrier has a strong balance sheet and we will continue to strategically invest globally in assets and projects generating high rates of return while returning capital to shareholders.” On its quarterly conference call, management reiterated its belief in its ability to achieve its guidance amid a narrowing of its deliveries guidance to 20K-22K units. The company also addressed the changing landscape of the rail industry as it shifts from being focused on energy related equipment to a more balanced approach. The company said it sees continued U.S. demand as the U.S economy continues to have “strong legs.” Greenbrier noted that it is “a little bit more optimistic” on the railcar industry than most industry forecasters. Notably, the company also announced that it has formed GBSummit, a 50/50 joint venture with Sumitomo Corporation of Americas. When it opens in early 2017, GBSummit will be the “preeminent” axle machining location on the US West Coast that supports growing intermodal rail activity, the company said.