Monday, August 05, 2013

FreightCar America marks 2Q loss

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FreightCar America marks 2Q loss Bruce Harmon

FreightCar America, Inc. recorded a net loss of $3.4 million, or a loss of 29 cents per diluted share, in the second quarter, the company said late Friday, Aug. 2, 2013. That compared with net income of $5.6 million, or a gain of 46 cents per diluted share, in the second quarter of 2012.

Second-quarter revenue of $47.1 million was down sharply from the $181.2 million in the second quarter of 2012.

Wall Street analysts anticipated a loss of 10 cents per diluted share for the quarter.

"Given the ongoing weakness in our traditional freight railcar market, we continue to focus on the diversification of our product offerings, as exemplified by the successful startup of the Shoals, Ala., facility to produce non-coal cars and the improving returns from our Services business this quarter," said CEO Ed Whalen. ""We remain vigilant in managing our costs and believe that execution against the factors that are within our control will position us well for the future."

FreightCar America delivered 710 railcars in the second quarter of 2013, which included 160 new railcars, 200 leased railcars, and 350 rebuilt railcars. This compares with 2,786 railcars delivered in the second quarter of 2012 and 1,073 railcars delivered in the first quarter of 2013. There were 693 units ordered in the second quarter of 2013, which included an order for our recently introduced intermodal well cars. This compares with 961 units ordered in the second quarter of 2012 and 274 units ordered in the first quarter of 2013.

Total manufacturing backlog was 2,065 units at June 30, 2013, compared to 5,109 units at June 30, 2012 and 2,082 units at March 31, 2013. Subsequent to quarter end, orders for over 5,500 railcars were received, which include orders for about 4,000 rebuilt coal cars to serve the Eastern coal market, the company said.

The company also struggled in the first quarter of the year, reporting a net loss of $2.6 million, or 22 cents per diluted share, on revenue of $87.6 million.