FreightCar America

FCA said it expected its new Castaños, Mexico, facility to deliver 3,000-3,200 railcars in 2022.

FCA: 3Q22 Financial Results ‘Muted,’ 2022 Outlook ‘Reaffirmed’

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.

According to the Cowen and Company Rail Equipment Survey for 2Q22, it appears that hoppers and gondolas saw demand improvement relative to 1Q22. Containers and centerbeams declined relative to 1Q22.
Commentary

Cowen: 2Q22 Shipper Surveys Say …

According to Cowen and Company’s recently conducted second-quarter 2022 Rail Equipment and Rail Shipper Surveys, the outlook for railcar orders is positive, and rail shipping rates will continue to increase. Details follow, plus insights on the Class I railroads, ahead of earnings.

FreightCar America raised its 2022 delivery outlook from between 2,350 and 2,650 railcars to between 2,600 and 2,900 railcars, vs. 1,731 deliveries in fiscal year 2021.

For FCA, ‘Positive’ Gross Margin for 4Q21, Delivery Outlook Up for ’22

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’s Castaños, Mexico manufacturing facility.

FreightCar America ‘Poised for Growth’

With restructuring complete and railcar manufacturing operations transitioned from Cherokee, Ala., to Castaños, Mexico, FreightCar America is “poised for growth and a strong future,” President and CEO Jim Meyer reported on Feb. 9.

“While industry demand fundamentals remain strong, the pace of recovery is being gated by certain external factors starting with raw material cost inflation,” FreightCar America President and CEO Jim Meyer said during a third-quarter 2021 earnings announcement. He noted that sales inquiries, however, “continue to be very healthy.”

For FreightCar America, ‘Continuing Momentum’ in 3Q21

For third-quarter 2021, FreightCar America, Inc., reported achieving its fourth consecutive quarter of positive gross margin and second consecutive quarter of positive manufacturing operating income—despite a “difficult” railcar model launch—and reiterated its 2021 delivery outlook.

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.”