FreightCar America’s 4Q Railcar Deliveries Slumped

FreightCar America’s 4Q Railcar Deliveries Slumped

FreightCar America's railcar deliveries in the fourth quarter decreased to 1,308 railcars, including 528 new railcars and 780 rebuilt railcars. In 2011, 2,489 railcars delivered in the fourth quarter.

The manufacturer reported a net loss of $1.0 million in the fourth quarter of 2012, compared with a net profit of $8.5 million in the fourth quarter of 2011.

Quarterly revenue was $116.6 million, down 37.7 percent from $187.1 million in the same quarter in the previous year.

For the full year of 2012, profit was $19.1 million, compared with $4.9 million in 2011. Annual revenue was $677.4 million, up from $487.0 million in 2011.

Fourth quarter results were hit by reduced coal car demand and product line changeover costs at both of the railroad freight car manufacturer’s plants, said Ed Whalen, president and CEO, but the company still considered 2012 was still a good year.

The company expects its 2013 unit deliveries to be between 4,000 and 6,000 units, according to the Stifel Nicolaus Transportation, Logistics and Equipment Research Group.

FreightCar America has also sub-leased about 25% of Navistar’s Cherokee, Ala., manufacturing facility to expand capacity. The first deliveries of new railcars from the facility are expected in the second half of 2013. When fully operational, it will have the capacity to build more than 7,000 railcars per year.