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.

FreightCar America’s Jim Meyer: ‘We’re the Right Size for Who We Are and Where the Industry Is at This Moment’

Railway Age Editor-in-Chief William C. Vantuono and Financial Editor David Nahass recently spoke with FreightCar America, Inc. President and CEO Jim Meyer about the efforts to turn the historic, 120-year-old company around by consolidating manufacturing in Mexico and positioning it to meet the needs of the market.

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.”

FCA said it expected its new Castaños, Mexico, facility to deliver 1,400-1,600 railcars in 2021.

For FCA, ‘A Transformative Year’

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.

“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.

“We now enter a new chapter, where our business will be supported by a single new production facility designed specific to our needs, a highly experienced and cost competitive workforce, and a significantly enhanced competitive profile," President and CEO Jim Meyer said.

FreightCar America Acquires Final Stake in Castaños Operation

FreightCar America now owns 100% of Castaños Mexico, where all of its future railcar manufacturing is expected to be based by February 2021. It has completed the acquisition of the remaining 50% of its joint-venture partnership with Fasemex (Fabricaciones y Servicios de México).

FreightCar America manufactures freight cars, supplies railcar parts, and leases cars through its FreightCar America Leasing Company subsidiaries.

FreightCar America: Closing Shoals, Ramping Up Castaños

FreightCar America says it has completed key steps in its “manufacturing repositioning and business transformation strategy,” which includes closing its Shoals facility in Cherokee, Ala., by first-quarter 2021, and starting railcar shipments from a new production facility in Castaños, Mexico, by the end of 2020.

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.

Report: FreightCar America to Close Roanoke Plant

According to a report from WDBJ7 in Roanoke, Va., FreightCar America will soon wrap up the last of its production orders at its Roanoke facility.

FreightCar America: New Coil Covers, Forged Knuckles

RAILWAY AGE at RAILWAY INTERCHANGE 2019: FreightCar America is on hand at Railway Interchange 2019 with its new Coil Covers and Diamond Forged Knuckle.