FreightCar America's First Quarter Loss Larger Than Expected
The first quarter 2014 loss for FreightCar America was bigger than expected. The company reported revenues of $56.1 million for Q1 2014 and a net loss of $6.9 million, or $(0.58) per share. Analysts were expecting a smaller loss of $0.05 per share according to a Thomson Reuters poll of analysts. The company blamed the severe winter for part of its Q1 problems.Joe McNeely, ceo of FreightCar America said in a statement, "The severe winter weather experienced across much of the country had a significant negative impact on our business, causing supply disruptions and production inefficiencies. These interruptions, along with production line changeovers, resulted in railcar deliveries 30% lower than we had planned for the first quarter. Despite the first quarter's disruptions, we still expect to deliver approximately 7,000 cars in 2014. Due to a significant order for new coal cars and customer delivery requirements, we will resume production in our Danville facility this summer. The harsh winter weather also led to higher coal train utilization, which reduced the volume of railcars through our repair shops and sales of repair parts. We expect a rebound in repair and parts demand as the railroads improve their operating performance and coal trains become available for maintenance."
The company, which manufacturers railroad freight cars, delivered 753 railcars in the first quarter of 2014. They took orders for $1,654 railcars, including 1,500 new coal cars. The company has a backlog of 7,727 railcars.
Posted on May 4, 2014