FreightCar America Inc. fell into the red in the third quarter
due to a drop in rail car deliveries, which was triggered by a
decline in coal-related demand.
manufacturer delivered 937 rail cars (194 new rail cars and 743
rebuilt rail cars) in the three months ended Sept. 30, up 32
percent from the second quarter, but down 72.7 percent from
1,618 rail cars in the same period last year.
The company posted a
net loss of $926,000 in the quarter in contrast to net income
of $4.8 million in the same period last year on revenue that
fell 52.7 percent to $75.9 million.
"While the outlook for
the broader coal car market remains mixed, we are encouraged by
the resilience in the Eastern coal car market, as evidenced by
the large rebuild orders we received during the quarter," chief
executive officer Joe McNeely said.
which claims to account for 70 percent of the U.S. coal car
market, has seen a sharp falloff in this business. The
companys manufacturing segment recorded operating income
of $4.3 million on revenue of $66.9 million in the third
quarter vs. operating income of $13.9 million on revenue of
$152.5 million in the year-ago period.
However, following the
end of this years second quarter, the company disclosed a
surge in orders for 5,500 cars, including 4,000 rebuilt coal
amm.com, Aug. 5), with the remainder of the orders
for new cars outside of the coal market.
Americas manufacturing backlog totaled 7,129 rail cars at
the end of September compared with 2,065 units three months
earlier and 3,716 units a year ago.
The company opened a
plant in Shoals, Ala., earlier this year as part of its effort
to diversity outside the coal market.
posted total orders of 6,001 units in the third quarter, which
included 4,000 rebuilt coal cars, compared with orders for 693
units in the second quarter and 225 units sold in the same
period last year.