Wednesday, February 19, 2014

FreightCar America logs loss for 4Q, full year

Written by 
FreightCar America logs loss for 4Q, full year Bruce Harmon

FreightCar America, Inc. reported a fourth-quarter loss following the close of trading Tuesday, Feb. 18, 2014, with its rail division contributing to the shortfall. The company's fourth quarter net loss was $12.3 million, or a loss of $1.03 per diluted share, on revenue of $79.7 million.

The company's full-year 2013 revenue of $290.4 million resulted in a net loss of $19.3 million, or $1.61 per diluted share, it said.

"FreightCar America experienced a significant transformation of the business in 2013. While the financial results are not what we desired, we completed several key strategic milestones in the past year," said CEO Joe McNeely. "We successfully started up the Shoals facility and brought to market a number of non-coal car types including intermodal and covered hopper railcars. We also continued to make changes to improve the returns of our services business, which resulted in the decision to close one of our underperforming repair shops."

KeyBanc Capital Markets Inc. analyst Steve Barger, in a note to clients, said, "After adjusting for $10.5 million in restructuring and non-cash impairment charges, we estimate Rail [operations] lost $0.15 in the quarter. Revenue came in at $79.7 million vs. consensus of $96.9 million. Rail delivered 1,101 railcars in the quarter vs. our estimate of 1,250. 4Q13's mix of deliveries was 190 new, 99 used, and 812 rebuilds."

Barger added, "Operationally, we think Rail is now successfully manufacturing in the Shoals facility, it is making progress with respect to its intermodal and covered hopper product lines, and it is restructuring its service business by closing one of the underperforming repair shops." Barger said FreightCar America is indicating it "expects to deliver 7,000 railcars in 2014, in line with our estimate of 7,000."