Business
FreightCar America, Inc. Reports Fourth Quarter and Full Year 2019 Results
‘Back to Basics’ transformational strategy has repositioned the business to compete profitably when we enter the next upturn in the cycle Finished the year
About this update from Freightcar America, Inc.
[{"type":"text","content":"‘Back to Basics’ transformational strategy has repositioned the business to compete profitably when we enter the next upturn in the cycle\n Finished the year with $70 million in cash, cash equivalents, marketable securities, and restricted certificates of deposit CHICAGO, Feb. 26, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the fourth quarter ended December 31, 2019. Business Highlights Fourth quarter revenue of $44.9 million on deliveries of 439 unitsFourth quarter net loss of $9.5 million, or $0.75 per diluted share, which includes the impact of asset sales and certain restructuring itemsTotal cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit of $70.0 million at December 31, 2019Year-end backlog totaled 1,650 railcars with an aggregate value of approximately $206 millionSubsequent to year end, the Company received additional orders for 300 railcarsFull-year 2020 delivery outlook forecasted to range between 2,000 and 2,500 railcars‘Back to Basics’ benefitted fourth quarter results with over $2,000 per railcar of material cost savings in 2019 on a run-rate basis, which, when combined with savings achieved in 2018, yielded more than $5,000 of savings per railcar, excluding commodity price movementsCompany expects its Castaños, Mexico facility to be in production by the end of 2020 “2019 was a year of significant progress for FreightCar as we continued to aggressively transform the business and reposition it to compete profitably in the future,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “While industry conditions remained challenged, we focused on maintaining our internal momentum by executing against the last few steps of our ‘Back to Basics’ strategy. This included strong performance against our goals to remove over $5,000 per car in material costs over the last two years. It also included significant work to revamp our product portfolio to better align with customer needs. Lastly, we took important steps to optimize our manufacturing footprint through further domestic consolidation and a new partnership to expand into Mexico. The latter will allow us to increase the competitiveness of our portfolio. When complete, our footprint will include the industry’s newest production facilities...