FreightCar America notches profit in second quarter
Written by William C. Vantuono, Editor-in-ChiefFreightCar 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.
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.
