FreightCar America

FreightCar America 2Q21: ‘We’ve Achieved the Majority of Our Goals’ (UPDATED)

For second-quarter 2021, FreightCar America, Inc. said it has attained its third consecutive quarter of positive gross margin and first quarter of manufacturing operating income since 2018 and has raised its 2021 delivery outlook for the second time, and announced plans to add two additional production lines at its Castaños, Mexico plant within one year.

At the end of March 2021, FreightCar America had a total backlog of 1,380 railcars, with an aggregate value of about $137 million.

For FCA, ‘Encouraging Signs’ Ahead

“We are already seeing the early benefits of moving our manufacturing footprint” to Mexico, FreightCar America, Inc. (FCA) President and CEO Jim Meyer said during the company’s first-quarter earnings report, noting “the leverage from our new operations and cost structure will serve us well in the improving market.”

“By moving all production to Mexico by early 2021, we have reset our cost-base and are multiple steps closer to reaching our goal to become the highest quality and lowest cost producer in the industry,” FreightCar America President and CEO Jim Meyer said.

FCA 3Q20: Revenues Down, Business Repositioning Continues

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.

Cowen: Railcar Demand Recovery in 2021

In the two weeks following Cowen and Company’s mid-September Transportation and Sustainable Mobility Conference, analyst Matt Elkott, with input from colleagues Adam Kramer and Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), noted that railcar inquiries “have ticked up. While translation into orders may not yet be commensurate with inquiries due to election and pandemic uncertainty, there appears to be an improvement in underlying demand” that should carry forward into a recovery in 2021.