FreightCar America Completes Financial Restatement

CHICAGO (AP) — FreightCar America Inc. said Wednesday it filed restated financial results from 2007 through the first quarter of this year.

The changes resulted in an aggregate increase of $7.6 million in net income over what the company originally reported.

However, FreightCar said the restatement caused it to fall out of compliance with terms of two credit facilities. The company said it got waivers in August that required it to be in compliance by Sept. 30.

The company said it made errors relating to accounts payable that resulted in those figures being overstated.

The company now says it earned $27.5 million in 2007 instead of the originally reported $26.5 million; $11.4 million in 2008 instead of $4.6 million; and $2.4 million in the first quarter of 2009 instead of $2.6 million.

FreightCar said it found deficiencies in accounting controls and put in a new reporting system to correct the situation.

In addition to the two annual results, FreightCar restated quarterly results for the first, second and third quarters of 2008 and the first quarter of this year.

CEO Chris Ragot said restatement did not affect operation of the company.

The company plans to release second-quarter results on Sept. 22.

FreightCar makes railroad freight cars, especially ones designed to carry coal.

Shares fell 19 cents to $19.70 in regular trading, then dropped another 20 cents to $19.50 in extended trading.