!

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/hot-news

03/29/2023

377 views

FreightCar America Optimistic About Tank Car Market Potential

    FreightCar America Optimistic About Tank Car Market Potential

    Company eyeing opportunities to manufacture tank cars for nonflammable materials

    A rail car produced by FreighCar America (Photo: FreightCar America)

    FreightCar America Is Prepared for an Upswing in Demand for Nonflammable Tank Cars

    FreightCar America has announced that it is prepared to meet any increase in demand for nonflammable tank cars if federal regulators speed up the timeline to replace or retrofit DOT-111 tank cars with DOT-117 cars. The U.S. regulators are considering advancing the timeline for fully implementing DOT-117 tank cars into the rail car pool from 2029 to 2025, following safety concerns raised by the derailment of a Norfolk Southern train in East Palestine, Ohio, on Feb. 3.

    Opportunities for Nonflammable Tank Cars

    FreightCar America, headquartered in Chicago, does not manufacture flammable liquid tank cars like the DOT-117 model. However, if other rail car manufacturers are busy producing DOT-117 tank cars, that could leave the market open for FreightCar America to produce tank cars that carry nonflammable material. The officials noted that these tank cars would carry commodities like vegetable oils. Matt Tonn, FreightCar America's Chief Commercial Officer, said that they believe the regulation is likely to occur and create some opportunities for them.

    Association of American Railroads Approval

    FreightCar America obtained approval from the Association of American Railroads for three tank car designs. President and CEO Jim Meyer stated that these designs consist of three car types that cover a disproportionately favorable percentage of the tank car market and are the core of the market.

    Supply Chain Issues and the Company's Response

    FreightCar America expects to handle supply chain issues related to the market dynamics facing the freight rail industry at large. The Class I railroads are struggling with hiring and having a sufficient labor force, and they are also struggling with their material suppliers. These hindrances are affecting everybody's output and on-time delivery. To compensate, FreightCar America has developed a longer planning horizon with suppliers, as the company knows what rail cars it plans to build this year. The company is also making further investments into its fabrication shop to double its capacity.

    Eliminating Debt and Investment

    FreightCar America entered into a refinancing agreement, which will close in May. The refinancing will provide FreightCar America with additional capital to invest in new initiatives to accelerate the next phase of growth as well as help to eliminate debt on the balance sheet.

    Production and Revenue Growth

    The company expects to grow its production lines operating in Mexico from three to four by late summer and anticipates doubling the capacity of its paint shop, enabling the facility to produce 5,000-plus units per year. FreightCar America had a backlog of 2,445 rail cars valued at $288 million at the close of 2022. Orders in 2022 totaled 3,208 rail cars, with 1,066 booked in the fourth quarter. First-quarter 2023 revenue was $364.8 million, up 80% year over year, amid deliveries of 3,184 rail cars.

    Net Losses in the First Quarter

    FreightCar America sustained a net loss of $9.7 million, or 37 cents per share, and an adjusted net loss of $8.1 million, or 31 cents per share, in the first quarter. This is compared to net income of nearly $1.2 million, or 6 cents per share, in the first quarter of 2022. The net loss in the first quarter was due primarily to noncash items, including a $4.5 million impairment on leased rail cars, one-time Mexican VAT costs of $1.9 million, and noncash income of $4.7 million due to the change in fair market value of the warrant liability, according to the company.

     

     

    MintN

    Mint Nguyen

    More blogs like this: