• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

FreightCar America Lands Coal Car Order From Norfolk Southern

Posted on: Thursday, 15 June 2006, 15:00 CDT

FreightCar America, Inc. (Nasdaq:RAIL) announced today that Norfolk Southern Railway Company has committed to purchase 1,600 coal cars from the Chicago-based railcar manufacturer. The order is comprised of 400 AutoFlood III(TM) aluminum bottom discharge coal cars and 1,200 hybrid stainless steel/aluminum coal gondola cars. FreightCar America will begin delivery of the new order in the first quarter of 2007 from its Roanoke, VA railcar production facility, and will complete the order in calendar 2007.

The hybrid stainless steel/aluminum car is a new design developed and prototyped by FreightCar America in conjunction with Norfolk Southern to address the unique transportation requirements of eastern coal, and is the design selected by Norfolk Southern to initiate its long-term coal car replacement program. The configuration of the new car is similar to FreightCar America's proven BethGon(R) II coal gondola car with its patented cold-rolled center sill. The hybrid description refers to the construction of the car's body, which incorporates a combination of stainless steel to withstand the application of heat used to thaw frozen coal, and aluminum to maximize the car's load-carrying capability.

FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has manufacturing facilities in Danville, Illinois, Roanoke, Virginia and Johnstown, Pennsylvania.

This press release may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and acceptance of customer orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. More information about FreightCar America is available on its website at www.freightcaramerica.com.

Source: Business Wire

More News in this Category