FreightCar America, Inc. Q3 2008 Earnings Call Transcript

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2008-11-16 02:35:57.0

Tags: Call Transcript, Order, Earnings, FreightCar America Inc., Capital Structures, Manufacturing, Finance, Seeking Alpha, Call Transcript, Order, Earnings, FreightCar America Inc., Capital Structures, Manufacturing, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Our first question comes from Kevin Sterling from Stephens Inc. Please go ahead.

Kevin SterlingStephens Inc.

Good morning Chris and Kevin.

Chris Ragot

Good morning Kevin.

Kevin SterlingStephens Inc.

Let me start with your orders for the quarter, may be you could share a little more color on the orders. Were these primarily from Class-1 rails, utilities et cetera? Could you share a little more color on your pretty significant growth in orders for the third quarter?

Chris Ragot

A combination of Class-1 utilities, and I would say, a smothering of the leasing companies.

Kevin SterlingStephens Inc.

Okay, was it primarily driven by the Class-1’s or it is essentially broken up?

Chris Ragot

I would say that was a healthy portion of it, yes.

Kevin SterlingStephens Inc.

Okay. What does the order trend look like for Q4, I know you guys said it would be lumpy, could you share a little color regarding your order trend for Q4?

Chris Ragot

You know, this last month here has been a very interesting month for a lot of us obviously, and it is hard to handicap the future, but I would say our quoting activity has remained in a good position here in the last 30 days and I am encouraged with this week, and we picked up several significant orders that we felt comfortable with. So, you know, today, I was encouraged with so many orders we booked this week.

Kevin SterlingStephens Inc.

Okay, thanks. What is your total annual manufacturing capacity right now with the two facilities in Roanoke and Danville?

Chris Ragot

We do not get into specifics around that Kevin. It is adequate to say that our capacity that we have right now will meet the requirements in the marketplace for the foreseeable future.

Kevin SterlingStephens Inc.

Okay thank you. Chris, maybe could you should a little color about your outlook for 2009? I know you may not want to get into specifics, but if you could help us how you are thinking about 2009, maybe, in particular the first half of 2009?

Chris Ragot

I cannot go too far into 2009, and listen – I look at it this way, the last 4 to 6 weeks have been very difficult. People have been adjusting their thoughts about the future in many different ways, not only as companies, but as individuals. I am encouraged though during the last couple of weeks that the customers are coming back to us and locking in on some orders as I said this week, and I am encouraged that the order quoting activity seems to be fairly robust, so I think we will know a lot more between now and year-end, so it is hard to handicap, it is hard to really take a look into 2009, but as of the last week or so, I have been encouraged.

 

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