FreightCar America Swings to Profit on Higher Demand

Published February 21, 2012
Categories: Rail

FreightCar America reported fourth-quarter 2011 revenues of $187.1 million and net income of $8.5 million showing substantial improvement versus the prior quarter and the fourth quarter of 2010. For the fourth quarter of 2010, the company reported revenues of $51.0 million and a net loss of $3.5 million.

Revenues and net income for the fiscal year ended December 31, 2011 were $487.0 million and $4.9 million, respectively compared to revenues of $142.9 million and a net loss of $12.8 million in 2010.

The company said it delivered 2,153 new railcars in the fourth quarter compared to 1,515 new railcars delivered in the third quarter and 694 new railcars delivered in the fourth quarter of 2010.

There were 4,481 units ordered in the fourth quarter of 2011 compared to 2,840 units ordered in the third quarter of 2011 and 331 units ordered in the fourth quarter of 2010.

Total manufacturing backlog was 8,303 units at December 31, 2011 compared to 2,054 units at year-end 2010.

Railcars under lease with the company’s JAIX Leasing subsidiary totaled $54.7 million at the end of the fourth quarter, down from $57.2 million sequentially and $65.4 million at the end of 2010. The company said the decrease in railcars under lease reflects sales of leased railcars.

“The fourth quarter’s positive earnings reflect improved railcar demand as the eastern coal car replacement cycle continued,” said Ed Whalen, president and CEO. Whalen cautioned, however, “We maintain a positive outlook on the eastern coal car replacement cycle, but are mindful of the fact that continued mild winter weather and low industrial production growth may slow new coal car demand.”