FreightCar America Plummets to Lowest Ever on Unexpected Lossby
FreightCar America Inc. plunged to its lowest value ever after reporting an unexpected second-quarter loss on higher costs and a steep drop in deliveries.
The manufacturer posted a loss of 4 cents a share after the market closed on Monday. Analysts had anticipated earnings of 43 cents, according to the average of estimates compiled by Bloomberg. Revenue plunged 46 percent to $126.2 million, missing analysts’ estimates of $162.8 million.
FreightCar delivered 1,372 rail cars, 47 percent fewer than a year earlier, and saw costs rise as new car types were introduced. The company plans to reduce annual operating costs by $5 million by trimming the salaried workforce by 15 percent and closing a Johnstown, Pennsylvania, administrative office, among other efforts. FreightCar had 1,662 employees at the start of 2016, according to data compiled by Bloomberg.
“We remain on the sidelines as the company adjusts its cost structure and works to enter new markets in a difficult environment” analyst Matt Elkott of Cowen and Co. said in a research note.
FreightCar dropped 16 percent to $12.64 at 10:13 a.m. in New York. The shares earlier dropped to $12.56, the lowest intraday price since they began trading in April 2005. The stock had declined 23 percent this year through Monday.