Tuesday, September 22, 2009

FreightCar America notches profit in second quarter

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FreightCar America Inc. reported a profit larger than anticipated for its second quarter, with earnings of $7 million, or 59 cents per share, compared with a loss of 3 cents a share, or $368,000, in the comparable 2008 quarter. Consensus analyst estimates anticipated a profit of 10 cents per share.

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Revenue declined 26% to $104.3 million, close to the company’s July forecast of $104 million, and more optimistic than analyst expectations.

FreightCar America President and CEO Chris Ragot said the company has controlled spending and expects to reduce expenses by 20% this year.

The company said orders for new railcars rose 39% from a year earlier, and more than doubled from the moribund levels of the first quarter. Deliveries were 48% lower than the comparable 2008 quarter but also rose from the first quarter of 2009, up 24%. FreightCar America’s backlog declined to 1,472 units.