Rail Tank-Car Orders Threatened by U.S. Crude’s Collapse
This article is for subscribers only.
Add tank-car makers to the list of U.S. industries bracing for the effects from the plunge in crude prices.
While 2014’s record orders, including an all-time high 42,900 in the third quarter, will drive deliveries this year, according to Susquehanna International Group, manufacturers from Carl Icahn’s American Railcar Industries Inc. to Warren Buffett’s Union Tank Car Co. are facing a decline. New bookings in 2015 may plunge 70 percent, Macquarie Capital USA Inc. said, putting earnings at risk when scheduled deliveries drop in 2016.