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.
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