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Rail News: Financials

FreightCar America obtains order for more coal cars, rings up more sales in third quarter


FreightCar America Inc. recently landed a deal to be TXU Generation Development Co. L.L.C.’s exclusive supplier of up to 7,650 aluminum AutoFlood III™ coal cars. The car builder will deliver the aluminum automatic-discharge hoppers between second-half 2008 and 2009’s end.

TXU — which currently owns 520 AutoFlood IIIs — will use the cars to meet increased coal-burning needs. The company is expanding electrical-generation capacity by adding production units at seven Texas power plants.

However, FreightCar America didn’t tally many car orders in the third quarter. The car builder announced it obtained orders for 357 cars in the quarter compared with 3,763 units in the second quarter and 6,884 units in third-quarter 2005. As of Sept. 30, the company’s backlog stood at 12,176 units compared with 16,846 units on June 30.

But FreightCar America’s quarterly sales and income skyrocketed. Third-quarter sales totaled $395.8 million, up 50 percent, and net income totaled $36.8 million, up more than 110 percent compared with similar 2005 data. During 2006’s first nine months, sales increased nearly 60 percent to $1 billion and net income more than tripled to $94.8 million.

FreightCar America builds coal, flat, intermodal and coil steel cars; steel hoppers; mill gondolas; and motor vehicle carriers.