FreightCar America, Inc. report strong growth following 3Q15 results. The company delivered 2846 railcars in the third quarter of 2015, which included 2076 new and 770 rebuilt railcars. This is an increase compared to the same period in 2014 where 2354 railcars were delivered – 1554 new and 800 rebuilt cars. Total manufacturing backlog was 12 237 units on 30 September 2015, compared to 13 514 units in the same period in 2014 and 14 075 units in 2Q15.
Net income totalled US$14.8 million (US$1.20 per diluted share) and revenues were US$241.1 million for 3Q15 – an increase compared to revenues in 3Q14 of US$190.3 million and net income of US$6.4 million (US$0.53 per diluted share), as well as an increase from the previous 2Q15 quarter revenues of US$235.6 million and net income of US$7.4 million. The company saw a pre-tax gain of US$4.6 million (US$0.24 per diluted share on an after-tax basis), related to the sale of the railcar repair and maintenance services business completed on 30 September 2015 for US$20 million in cash and the assumption of certain liabilities by the purchaser.
President and CEO, Joe McNeely, commented: “Our third quarter earnings grew significantly both year over year and sequentially, a result of higher railcar deliveries and a stronger manufacturing margin. During the quarter, we saw operational improvements throughout our organization, including at the Shoals facility, where production continued to ramp up. The sale of the railcar repair and maintenance services business during the quarter will allow us to increase our focus on the railcar manufacturing, parts and leasing businesses, while continuing to diversify our railcar portfolio and striving for greater productivity gains throughout the company.”
McNeely concluded: “Looking forward, we expect our full year 2015 deliveries to be between 9000 and 9500 railcars. The company is well positioned with a backlog of just over 12 000 railcars, which consists almost exclusively of non-coal cars. Supported by orders in the backlog, we are planning deliveries of between 7000 and 8000 railcars in 2016, as we do not see any meaningful coal car orders in the near term to replace the coal car rebuild program that is concluding this year.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/handling/03112015/freightcar-america-strong-3q15-results-3140/