FreightCar America Reports 2nd-quarter Profit

CHICAGO (AP) — FreightCar America Inc. on Tuesday reported a sharply higher profit and sales than analysts had expected, helped by increased orders for new railcars and lower expenses.

Its shares gained $2.06, or 10.1 percent, to $22.45 in electronic premarket trading.

For the three months ended June 30, the maker of railroad freight cars said it earned $7 million, or 59 cents per share, compared with a loss of $368,000, or 3 cents per share, a year earlier.

Analysts predicted a profit of 10 cents per share, according to a Thomson Reuters survey. Analysts' estimates typically exclude one-time items.

Sales fell 26 percent to $104.3 million from $141.3 million, but beat Wall Street's estimate of $70.1 million.

Meanwhile, selling, general and administrative expenses declined to $6.7 million, from $7.3 million.

The company said it had 694 orders for new railcars in the quarter, up from 538 orders in the year-ago period.

Railcar deliveries dropped to 1,207 units from 2,326 units a year ago. Total backlog of unfulfilled orders fell to 1,472 units, from 1,985 units at the end of the first quarter.