Monday, FreightCar America, Inc. (RAIL), a railroad company, reported a loss for the second-quarter compared with profit in the prior-year quarter. The Chicago-based company incurred a net loss of $0.9 million or $0.08 per share, compared with net income of $11.5 million or $0.93 per share in the prior-year quarter.
Analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.24 per share for the quarter.
Chris Ragot, President and chief executive said "The combination of a sharp increase in input costs, specifically steel and aluminum, and pricing pressures has reduced margins. These industry challenges have had a significant impact on our financial results for the quarter."
A loss contingency reserve of $3.7 million relating to the rapid cost increases was accrued during the quarter.
Quarterly sales decreased to $141.3 million, from $195.4 million in the prior-year quarter. Analysts expected the company to report revenue of $131.90 million.
For the first half, the company's net loss was $11.1 million or $0.94 per share compared with net income of $34.4 million or $2.75 per share in the prior-year quarter. The company's sales were $236.4 million compared with $517.8 million prior year.
The company said first-half results included charges related to a loss contingency reserve due to sharp material cost increases on fixed price contracts in the amount of $2.6 million after tax or $0.22 per share.
Monday, the stock is currently trading down by 22% at $28.06 on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.