Welcome to our dedicated page for Freightcar Amer news (Ticker: RAIL), a resource for investors and traders seeking the latest updates and insights on Freightcar Amer stock.
FreightCar America reports developments tied to its railroad freight car manufacturing and railcar aftermarket businesses. The company designs, produces and supplies railroad freight cars, railcar parts and components, and provides repair, rebody and conversion services that return idled rail assets to service.
Recurring news for RAIL includes quarterly and annual results, railcar deliveries, backlog, gross margin, adjusted EBITDA, cash flow, and outlook commentary. Company updates also cover aftermarket revenue trends, component distribution through Carly Railcar Components, annual meeting matters, investor conference appearances, and other governance or corporate communications.
FreightCar America, Inc. (Nasdaq: RAIL) will hold a conference call on November 10, 2020, at 11:00 a.m. EST to discuss third-quarter 2020 financial results. The earnings report will be released post-market on November 9, 2020. Participants can join the call by dialing (877) 407-0789 or listening via the webcast. An audio replay will be available from November 10, 2020, 2:00 p.m. EST until November 24, 2020. FreightCar America manufactures a variety of railroad freight cars and provides railcar leasing services, with headquarters in Chicago, Illinois.
FreightCar America (NASDAQ: RAIL) has completed its acquisition of the remaining 50% interest in the Castaños, Mexico joint venture, now owning 100% of the facility expected to host all railcar manufacturing by February 2021.
Additionally, the company has secured a $40 million term loan to enhance its balance sheet and facilitate growth. This loan includes a warrant allowing the lender to purchase up to 23% of the company's stock. FreightCar America anticipates a $25 million reduction in fixed costs from this new manufacturing setup. A special stockholder meeting is scheduled for late November to approve the stock issuance related to the loan.
FreightCar America (NASDAQ: RAIL) is progressing in its strategy to become a low-cost, high-quality railcar producer. Significant developments include the early termination of its lease at the Cherokee, Alabama facility, effective February 28, 2021, reducing fixed costs by ~$20 million annually. The new joint venture facility in Castaños, Mexico, has completed AAR certification audits and is nearly ready for full-scale production. Additionally, the company secured a new asset-backed credit facility of up to $20 million for operational flexibility.
FreightCar America (NASDAQ: RAIL) announced plans to acquire its partner’s 50% stake in the Castaños, Mexico joint venture and consolidate production there by January. The move includes closing the Cherokee, Alabama facility, reducing costs to adapt to low railcar demand exacerbated by COVID-19. The consolidation is expected to save over $20 million annually and lower production breakeven to under 2,000 railcars. The Castaños facility, now operational, can scale production significantly as demand grows. The company ended Q2 with $52.4 million in cash and plans to complete negotiations by year-end.
FreightCar America (NASDAQ: RAIL) reported a Q2 2020 revenue of $17.5 million with a net loss of $12.8 million or $0.97 per share. The company delivered 100 railcars in the quarter and maintained a backlog of 1,839 railcars valued at $207 million. Despite challenges posed by the COVID-19 pandemic and a cyclical downturn in demand, FreightCar commenced production at its Castaños, Mexico joint venture plant and forecasts delivery of 750 to 1,000 railcars in the second half of 2020. The management emphasizes the commitment to safety and operational efficiency.
FreightCar America (Nasdaq: RAIL) will hold a conference call on May 11, 2020, at 11:00 a.m. EDT to discuss its Q1 2020 financial results. The earnings release will be published before the market opens on the same day. Interested parties can join the call by dialing (877) 692-8957 with Confirmation Number 8606324 or access the live audio-only webcast online. An audio replay of the call will be available later that day, and on-demand access will also be provided through the company’s website.