FreightCar America, Inc. Reports Strong Fourth Quarter Results

FreightCar America, Inc. (NASDAQ: RAIL) today reported a strong finish to 2008, in light of the current industry environment, with fourth quarter revenues of $271.9 million and net income of $8.3 million, or $0.70 per diluted share.

Sales for the quarter were up 14% from third quarter 2008 sales of $238.0 million and up significantly over fourth quarter 2007 sales of $137.1 million. Railcar deliveries totaled 3,624 units in the quarter, including 3,394 cars sold and 230 cars leased. That compares to 3,082 units delivered in the previous quarter and 1,605 units delivered in the fourth quarter of 2007.

Fourth quarter 2008 net income increased 12% over earnings of $7.4 million for the third quarter of 2008 and improved substantially over the company’s loss of $16.6 million in the fourth quarter of 2007, which was primarily due to $30.8 million of costs associated with the shutdown of its manufacturing facility in Johnstown, Pennsylvania.

Chris Ragot, President and Chief Executive Officer, stated, "Despite the difficult business environment, we are very pleased with our financial results. Our team was able to take advantage of year-end customer demand while delivering on important initiatives to strongly position us to weather this industry downturn. We have continued to reduce SG&A costs, reduce year-end inventory levels and preserve the strength of our balance sheet.”

Mr. Ragot further stated, "Looking forward for 2009, activity is sluggish and we anticipate a significant reduction in railcar deliveries for the year. We will continue to aggressively reduce expenses throughout the company in order to enhance profitability and conserve cash.”

Total backlog of unfilled orders was 2,620 units at the end of 2008, compared with 4,401 units at September 30, 2008 and 5,399 units at December 31, 2007.

FULL YEAR RESULTS

For the year ended December 31, 2008, sales were $746.4 million, down 9% from 2007 sales of $817.0 million. Net income for 2008 was $4.6 million, or $0.39 per diluted share, compared to $26.5 million, or $2.17 per diluted share, for 2007.

Earnings for both 2008 and 2007 were significantly impacted by costs associated with the shutdown of the Johnstown manufacturing facility, with charges of $20.0 million in 2008 and $30.8 million in 2007.

Railcar deliveries in 2008 were 10,349 (9,614 cars sold and 735 cars leased) compared to deliveries of 10,282 cars in 2007 (all cars sold).

Mr. Ragot stated, "2008 was both a challenging and important year for us. We successfully rationalized our production facilities, weathered volatile commodity prices, responded to aggressive competitive actions in the marketplace and reduced expenses while serving our customers and exceeding our financial goals.”

The Company will host a conference call on Tuesday, February 17, 2009 at 11:00 a.m. (Eastern Standard Time) to discuss the Company's fourth quarter financial results. To participate in the conference call, please dial (800) 288-8974. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.

An audio replay of the conference call will be available beginning at 1:00 p.m. (Eastern Standard Time) on Tuesday, February 17, 2009 until 11:59 p.m. (Eastern Standard Time) on March 4, 2009. To access the replay, please dial (800) 475-6701. The replay pass code is 985084. An audio replay of the call will be available on the Company's website within two days following the earnings call.

FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in Danville, Illinois, Johnstown, Pennsylvania and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com.

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.