FreightCar America Posts Second Quarter Results

FreightCar America, Inc. has reported revenues of $118.7 million for the 2017 second quarter that ended June 30, 2017, compared to revenues of to $126.2 million in the same quarter in 2016. The company’s second quarter posted a net loss of $0.4 million, or $0.04 per diluted share, compared to last year’s second quarter net loss of $0.5 million, or $0.04 per diluted share. Operating loss for the second quarter of 2017 was $0.9 million compared to an operating loss of $0.6 million for the second quarter of 2016.

“Although the second quarter was in line with the Company’s outlook, we are not satisfied with these results,” remarked FreightCar America’s new President and CEO Jim Meyer. “Continued manufacturing inefficiencies, unfavorable operating leverage and the current competitive environment more than offset the cost savings achieved to date. We will accelerate our cost reduction efforts with a particular focus on reducing material costs and achieving manufacturing excellence as we move forward.”

In the second quarter of 2017, the company delivered 1,096 railcars, all of which were new railcars, and sold 100 railcars previously on lease. This compares to 1,372 railcars delivered in the first quarter of 2016, which were all new railcars. Total backlog was 3,226 units at June 30, 2017, valued at $293 million.

“Based upon our current backlog and production schedule, we increased our full year 2017 delivery range to be between 4,300 and 4,500 railcars,” added Meyer.