FreightCar America Swings to Loss

FreightCar America Swings to Loss

FreightCar America reported a net loss of $2.6 million in the first quarter of 2013, compared with a net profit of $9.7 million in the first quarter of 2012.

Quarterly revenue was $87.6 million, plummeting from $219.1 million in the same quarter last year. The manufacturing segment’s revenue was $77.7 million in the first three months of 2013, dropping from $210.4 million in the same period of 2012 and $109.3 million in the fourth quarter of 2012. However, revenue for the services segment was $9.9 million in the first quarter, up from $8.6 million in the first quarter of 2012 and $7.3 million in the fourth quarter of 2012.

“As I have previously stated, continued uncertainty in the freight railcar market will make 2013 a challenging year,” said Ed Whalen, CEO of the railroad freight car and equipment manufacturer, in a written statement. “We remain focused on factors within our control, including executing our railcar diversification strategy; the successful startup of our Shoals, Ala., facility; improving the results of our services business; and continuing to prudently manage our costs.”

The Chicago-based company delivered 1,073 railcars in the first quarter of 2013, which included 448 new railcars and 625 rebuilt railcars, versus 2,613 railcars delivered in the first quarter of 2012 and 1,308 railcars delivered in the fourth quarter of 2012. There were 274 units ordered in the first quarter of 2013, compared with 1,244 units ordered in the first quarter of 2012 and 473 units ordered in the fourth quarter of 2012. Total manufacturing backlog was 2,082 units at March 31, 2013, compared with 6,934 units at March 31, 2012, and 2,881 units at Dec. 31, 2012.

Railcars under lease totaled $43.1 million at the end of the first quarter of 2013, down slightly from $43.4 million at the end of the fourth quarter of 2012.

FreightCar America also separately announced that its board of directors has confirmed the appointment of Joseph “Joe” E. McNeely, who has been the company’s CFO, vice president of finance and treasurer since 2010, to the position of president and chief operating officer, effective immediately. In this new role, he will manage daily business operations and execute the company’s strategic plan. Ed Whalen will continue in his role as CEO.