Highlights
  • Fourth quarter revenue of $135.5 million on deliveries of 1,364 units
  • Fourth quarter net income of $0.1 million, or $0.01 per diluted share
  • Full year 2016 net income of $12.3 million, or $1.00 per diluted share
  • Year-end backlog totaling 4,259 railcars valued at $419 million
  • Additional cost reductions enacted to reduce annual selling, general and administrative costs by approximately $3.0 million
  • Total cash, cash equivalents and restricted cash of $98.7 million at December 31, 2016

CHICAGO, Feb. 27, 2017 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ:RAIL) today reported results for the fourth quarter ended December 31, 2016, with net income of $0.1 million, or $0.01 per diluted share, compared to net income of $11.7 million, or $0.94 per diluted share, in the same period last year.

"In 2016, the rail industry experienced a second year of reduced car loadings and a large oversupply of railcars, which contributed to a 45% reduction in deliveries in the fourth quarter," said Joe McNeely, President and Chief Executive Officer. "Additionally, in the fourth quarter, we continued to experience higher than expected manufacturing costs associated with certain first-time car builds. We continue to address our production processes and expect improvements in these builds going forward."

"Our delivery outlook for 2017 reflects year-over-year volume reductions as lower industry order trends are expected to persist. In this period of weak demand, we are focused on maintaining a strong cash position which provides stability. Based upon our current production schedules and customer delivery requirements, we expect to deliver between 3,200 and 3,800 new railcars in 2017, including 100 leased railcars," Mr. McNeely continued. "As a result of this outlook, we have implemented additional reductions in our salaried administrative workforce and discretionary spending, which are expected to yield an additional $3.0 million in annualized savings in addition to the $5.0 million of annualized savings we announced last year. Furthermore, we will be idling our Danville, Illinois, manufacturing facility for railcar production effective March 31, 2017."

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