FreightCar America

Nicholas J. Randall, COO, FreightCar America (left); and Rahul Jalali, Executive Vice President, UP (right).

People News: FreightCar America, UP

FreightCar America, Inc. (FreightCar America) appoints Nicholas J. Randall as Chief Operating Officer. Also, Union Pacific (UP) promotes Chief Information Officer Rahul Jalali to Executive Vice President.

In 2022, FCA reported revenues of $364.8 million, up 79.6% from 2021’s $203 million, on deliveries of 3,184 railcars, up 83.9% from 2021’s 1,731 railcar deliveries.

For FCA, ‘Another Strong Year of Transformation’ (Updated March 31)

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.”

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.

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.