Reflecting continued efforts to ramp up the Castaños, Mexico factory and to mitigate supply-chain challenges, FreightCar America, Inc. (FCA) “experienced sequential improvement” in gross margin and profitability in first-quarter 2023, according to President and CEO Jim Meyer.
While FreightCar America (FCA) finished “strong” in 2022, ramping up operations in Castaños, Mexico, and delivering 3,184 railcars, the carbuilder in the fourth quarter “continued to experience margin pressure, primarily due to supply chain issues,” President and CEO Jim Meyer said during a March 27 financial report. “These dynamics will be with us through the first quarter of this year, after which we expect to see further improvement in our financial performance.”
While FreightCar America (FCA) “delivered another quarter of strong top-line growth” and produced “another record number of railcars at the Castaños facility,” third-quarter 2022 “financial results were muted by the combined impacts of delivering lower margin orders accepted at the bottom of the cycle and elevated freight costs,” FCA President and CEO Jim Meyer reported on Nov. 7.
For FreightCar America (FCA), the benefits of transitioning its manufacturing to Castaños, Mexico were evident in 2021 with “positive gross margin for the fifth consecutive quarter and manufacturing operating income for the third consecutive quarter, despite persistent supply chain challenges and inflationary pressures,” President and CEO Jim Meyer said during a fourth-quarter and full-year 2021 earnings announcement on March 22.
FreightCar America, Inc. (FCA) reported its fourth-quarter 2020 results on March 24, including revenue of $60.6 million, up 35% year-over-year on deliveries of 477 railcars.
FreightCar America (FCA) has reported its third-quarter 2020 results, including consolidated revenues of $25.2 million on deliveries of 163 railcars—a 38% drop from the year-earlier period’s $40.7 million on deliveries of 467 railcars—as the industry “remains in a cyclical downturn, which was intensified by the pandemic.” The company continues to move all railcar production to its new Mexico facility by early 2021.