Reflecting continued efforts to ramp up the Castaños, Mexico factory and to mitigate supply-chain challenges, FreightCar America, Inc. (FCA) “experienced sequential improvement” in gross margin and profitability in first-quarter 2023, according to President and CEO Jim Meyer.
While FreightCar America (FCA) finished “strong” in 2022, ramping up operations in Castaños, Mexico, and delivering 3,184 railcars, the carbuilder in the fourth quarter “continued to experience margin pressure, primarily due to supply chain issues,” President and CEO Jim Meyer said during a March 27 financial report. “These dynamics will be with us through the first quarter of this year, after which we expect to see further improvement in our financial performance.”
While FreightCar America (FCA) “delivered another quarter of strong top-line growth” and produced “another record number of railcars at the Castaños facility,” third-quarter 2022 “financial results were muted by the combined impacts of delivering lower margin orders accepted at the bottom of the cycle and elevated freight costs,” FCA President and CEO Jim Meyer reported on Nov. 7.
FreightCar America (FCA) posted a strong second-quarter 2022 and raised its revenue and delivery outlook for fiscal year 2022.
According to Cowen and Company’s recently conducted second-quarter 2022 Rail Equipment and Rail Shipper Surveys, the outlook for railcar orders is positive, and rail shipping rates will continue to increase. Details follow, plus insights on the Class I railroads, ahead of earnings.
FreightCar America closed first-quarter 2022 with “significantly improved results” in spite of “persistent inflationary and supply chain challenges,” President and CEO Jim Meyer said during a May 10 earnings report that also announced his 2023 retirement.
For FreightCar America (FCA), the benefits of transitioning its manufacturing to Castaños, Mexico were evident in 2021 with “positive gross margin for the fifth consecutive quarter and manufacturing operating income for the third consecutive quarter, despite persistent supply chain challenges and inflationary pressures,” President and CEO Jim Meyer said during a fourth-quarter and full-year 2021 earnings announcement on March 22.
With restructuring complete and railcar manufacturing operations transitioned from Cherokee, Ala., to Castaños, Mexico, FreightCar America is “poised for growth and a strong future,” President and CEO Jim Meyer reported on Feb. 9.
For third-quarter 2021, FreightCar America, Inc., reported achieving its fourth consecutive quarter of positive gross margin and second consecutive quarter of positive manufacturing operating income—despite a “difficult” railcar model launch—and reiterated its 2021 delivery outlook.
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.