Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

FreightCar America, Inc. Leases Railcar Manufacturing Capacity



  FreightCar America, Inc. Leases Railcar Manufacturing Capacity

Business Wire

CHICAGO -- February 19, 2013

FreightCar America, Inc. (NASDAQ: RAIL) today announced that it has sub-leased
approximately 25% of Navistar, Inc.’s Cherokee, Alabama manufacturing
facility. Opened in 2008 and located in the Shoals region of Alabama, the
state-of-the-art production facility was designed to efficiently build a wide
variety of railcar types. FreightCar is preparing the Shoals facility for
operation, with the first deliveries of new railcars expected in the second
half of 2013. When fully operational, the facility will have the capacity to
build over 7,000 railcars per year.

In connection with the transaction, the Company also entered into several
related agreements with Navistar for the supply of parts and production
support services and the purchase of production equipment at the Shoals
facility. The Company expects to invest up to $23 million to equip and make
the facility operational.

Ed Whalen, President and CEO, said, “This transaction is an important part of
our long-term growth strategy as we continue to expand our railcar product and
service offerings outside of our traditional coal car market. While our
existing facilities will continue to support our coal products, the Shoals
facility will allow us to produce a broader variety of railcars in a cost
effective and efficient manner. In addition, the facility layout, automated
production equipment, proximity to key suppliers and new supply agreements
will increase our flexibility and make us more competitive in the marketplace.
We very much appreciate the support that we have received from the State of
Alabama and local Shoals region communities as we make this facility
operational.”

                                  * * * * *

The Company will host a conference call and live webcast on Wednesday,
February 20, 2013 at 11:00 a.m. (Eastern Standard Time) to discuss the
Company’s fourth quarter and full year 2012 financial results and the details
of this announcement. To participate in the conference call, please dial (800)
230-1093, Confirmation Number 281877. Interested parties are asked to dial in
approximately 10 to 15 minutes prior to the start time of the call. The live
audio-only webcast can be accessed at:

Event URL: https://im.csgsystems.com/cgi-bin/confCast
Conference ID#: 281877

If you need technical assistance, call the toll-free AT&T Conference Casting
Support Help Line at 1-888-793-6118. Please note that the webcast is
listen-only and webcast participants will not be able to participate in the
question and answer portion of the conference call. An audio replay of the
conference call will be available beginning at 1:00 p.m. (Eastern Standard
Time) on February 20, 2013 until 11:59 p.m. (Eastern Daylight Time) on March
20, 2013. To access the replay, please dial (800) 475-6701. The replay pass
code is 281877. An audio replay of the call will be available on the Company’s
website within two days following the earnings call.

                                  * * * * *

FreightCar America, Inc. manufactures railroad freight cars, supplies railcar
parts, leases freight cars through its JAIX Leasing Company subsidiary, and
provides railcar maintenance, repairs and management through its FreightCar
Rail Services, LLC subsidiary. FreightCar America designs and builds coal
cars, bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil
steel cars and motor vehicle carriers. It is headquartered in Chicago,
Illinois and has facilities in the following locations: Clinton, Indiana,
Cherokee, Alabama, Danville, Illinois, Lakewood, Colorado, Grand Island,
Nebraska, Hastings, Nebraska, Johnstown, Pennsylvania, and Roanoke, Virginia.
More information about FreightCar America is available on its website at
www.freightcaramerica.com.

This press release may contain statements relating to our expected financial
performance and/or future business prospects, events and plans that are
“forward-looking statements” as defined under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press release. Our
actual results may differ materially from the results described in or
anticipated by our forward-looking statements due to certain risks and
uncertainties. These potential risks and uncertainties include, among other
things: the cyclical nature of our business; adverse economic and market
conditions; fluctuating costs of raw materials, including steel and aluminum,
and delays in the delivery of raw materials; our ability to maintain
relationships with our suppliers of railcar components; our reliance upon a
small number of customers that represent a large percentage of our sales; the
variable purchase patterns of our customers and the timing of completion,
delivery and customer acceptance of orders; the highly competitive nature of
our industry; the risk of lack of acceptance of our new railcar offerings by
our customers; and the additional risk factors described in our filings with
the Securities and Exchange Commission. We expressly disclaim any duty to
provide updates to any forward-looking statements made in this press release,
whether as a result of new information, future events or otherwise.

Contact:

FreightCar America, Inc.
Joe McNeely, 800-458-2235
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement