Nasdaq Exchange Warns FreightCar

Rail industry equipment supplier FreightCar America said it received an expected notification letter from the Nasdaq stock exchange that it is out of compliance with deadlines for financial filings, as the company tries to correct understated earnings.

Nasdaq told FreightCar it has until Oct. 19 to submit a plan on coming back into compliance, for its stock to keep trading with the exchange under the ticker symbol RAIL.

The builder of coal-carrying railcars and a range of equipment for other cargoes earlier said it will need to delay filing its second-quarter reports with the Securities and Exchange Commission past the normal deadlines, after discovering it has been understating earnings since the fourth quarter of 2007.

FreightCar said it “expects to complete its review and make the required filings during the third quarter of 2009.”

As to the Nasdaq process and its Oct. 19 deadine, FreightCar said “the company intends to submit a plan to regain compliance within this 60-day period. If Nasdaq accepts FreightCar’s plan, FreightCar will have up to 180 calendar days from the filing's due date, or until Feb. 8, 2010, to regain compliance. If Nasdaq does not accept FreightCar's plan, FreightCar will have the opportunity to appeal that decision to the Nasdaq Listing Qualifications Panel.”

See also:
“FreightCar Error to Boost Income”
“FreightCar Sales Jump $64M in Second Quarter”

Contact John D. Boyd at jboyd@joc.com.