FreightCar posts wider-than-expected Q3 loss

By Reuters
Posted Nov. 4, 2010 at 9:54 a.m.

FreightCar America Inc. posted a much wider-than-expected quarterly loss, hurt by challenging market conditions and low demand for coal-carrying railcars, and said it expects tough competition to continue to hurt pricing.

FreightCar rebuilds, repairs, sells and leases freight cars used for hauling coal, other bulk commodities, steel and other metals, forest products and automobiles.

“We continue to expect railcar pricing to be very competitive, keeping pressure on margins until volume recovers,” said the company, which specializes in making coal-carrying railcars.

FreightCar, however, said it saw signs of improvement in the market that could lead to increased demand for coal-carrying railcars in the long-term.

For July-September, the company reported a net loss attributable to FreightCar of $4.7 million, or 39 cents a share, compared with a profit of $1.1 million, or 9 cents a share, a year ago.

Revenue fell to $41.3 million from $55.1 million.

Analysts on average were expecting the company to post a loss of 4 cents a share, before special items, on revenue of $51.9 million, according to Thomson Reuters I/B/E/S.

Shares of the Chicago-based company closed at $27.48 Wednesday on Nasdaq. They have lost 10 percent of their value since touching a year-high of $30.58 in April.

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