FreightCar America posts loss as orders sag
Written by William C. Vantuono, Editor-in-ChiefFreightCar America on Thursday reported third-quarter 2010 revenue of $41.3 million, a net loss of $4.7 million, and per-share earnings of $0.39.For third-quarter 2009, the company generated revenue of $55.1 million, net income of $1.1 million, and per-share earnings of $0.09.
The company delivered 600 new freight cars in the third quarter of 2010, compared with 614 in the second quarter of 2010 and 695 in the third quarter of 2009. Seventeen cars were ordered in the third quarter of 2010, compared with 14 in the second quarter of 2010 and none in the third quarter of 2009. Total backlog was 2,417 units on Sept. 30, 2010, compared with 3,000 on June 30, 2010, and 777 on Sept. 30, 2009.
“Our sales and order volume for the third quarter of 2010 reflects the continuation of challenging market conditions and resultant low level of demand for coal-carrying railcars,” said President and Chief Executive Officer Ed Whalen.
“Looking forward, we continue to expect railcar pricing to be very competitive, keeping pressure on margins until volume recovers. Over the long term, we have begun to see some signs of improvement in the market,” said Whalen.
Whalen said the recent acquisition of the business assets of DTE Rail Services, Inc., for $23.3 million in cash “furthers the company’s strategic growth initiative to expand our presence in the railcar services sector.”
