FreightCar America

FreightCar America is a railway-equipment company whose business centers on freight cars and related services. The company began operations in 1901 and developed around the construction, repair, leasing, and support of rail vehicles used to move bulk and industrial commodities. Its freight-car applications have included coal, metals, forest and wood products, and automobiles, while its parts business supplies components for cars produced by other manufacturers. This combination gives FreightCar America exposure not only to new-car orders but also to the installed base of freight equipment requiring maintenance, replacement parts, refurbishment, and other aftermarket work. The company has historically operated a network of manufacturing and service locations in the United States, with facilities in Johnstown, Pennsylvania; Danville, Illinois; Cherokee, Alabama; and Roanoke, Virginia. It also maintains engineering and parts capabilities in Johnstown. Over time, the structure of its manufacturing footprint has changed in response to rail-car demand and economic conditions. The Roanoke plant was closed in 2009 during a period of weak economic activity, but the company announced its reopening in 2011 after receiving an order for 1,500 coal cars from Norfolk Southern Railway. Danville employment also recovered temporarily in 2014, although later workforce reductions were announced. The Roanoke facility was subsequently idled in 2017. FreightCar America's production volume has been cyclical. The company reported producing 10,349 freight cars in 2008, followed by 3,377 in 2009, illustrating the sensitivity of the business to freight demand, customer fleet investment, commodity cycles, and broader economic conditions. In fiscal 2010, it reported profit of $36.52 million on revenue of $141.3 million. These figures are historical and should not be interpreted as current financial performance. The company has also reshaped its asset base through facility transactions and geographic consolidation. In 2018, The Andersons agreed to acquire FreightCar America's Danville rail-car facility, with the intention of converting it into a full-service rail-car repair operation offering repair, painting, blasting, cleaning, tank-car certification, and scrapping. In 2020, FreightCar America announced the planned closure of its Cherokee, Alabama facility, citing a depressed rail-car market and the continuing effects of the COVID-19 pandemic. The company stated that new rail-car manufacturing had become concentrated in Castaños, Mexico, while aftermarket-parts production remained in Pennsylvania. The Castaños operation is described as the company's principal manufacturing facility and employs a substantial portion of its workforce. FreightCar America has experienced significant leadership continuity and transition in recent years. James Meyer announced in 2022 that he would retire as chief executive after a successor search. In March 2024, Nicholas Randall was named chief executive officer; Meyer became executive chairman and remained on the board. Randall had overseen expansion of the Castaños manufacturing facility before becoming CEO. The brand serves a specialized business-to-business market rather than consumer customers. Its positioning is based on industrial manufacturing expertise, customized freight-car capability, repair and leasing services, and parts support for railway operators and car owners. Its customers and end users are connected to freight railroads, leasing fleets, and industries dependent on bulk and manufactured-goods transportation. The company's history also reflects the challenges of the sector: volatile order cycles, plant closures and reopenings, labor reductions, and the migration or consolidation of production. Despite those changes, FreightCar America remains associated with the manufacture and lifecycle support of freight rail equipment.

FreightCar America traces its operations to 1901 and is headquartered in Chicago, Illinois. It operates in the specialized railway-equipment sector, building, repairing, leasing, and supporting freight cars used in the movement of commodities and manufactured products. Its historical customer applications have included coal, metals, wood products, and automobiles. In addition to complete railcars, the company produces parts that can be used in freight cars manufactured by other companies. For much of its history, FreightCar America maintained a broad American manufacturing footprint. Its facilities included plants in Johnstown, Pennsylvania; Danville, Illinois; Cherokee, Alabama; and Roanoke, Virginia, together with engineering and parts operations in Johnstown. The business has been strongly affected by fluctuations in rail-car demand. Production reached 10,349 cars in 2008 but fell to 3,377 in 2009. The company reported fiscal 2010 profit of $36.52 million on revenue of $141.3 million, reflecting a period in which its results were closely tied to industry orders and economic conditions. The Roanoke facility illustrates the company's cyclical operating model. It was closed in 2009 amid weak economic conditions, then slated for reopening in 2011 after Norfolk Southern placed an order for 1,500 coal cars. The Danville site also experienced a temporary employment revival in 2014, when more than 100 workers were brought back, but subsequent plans called for layoffs. In 2017, FreightCar America announced layoffs at Roanoke and later said that the plant would be idled. The company faced a serious workplace-violence incident at its Roanoke building on October 25, 2016. A former employee killed one worker and wounded three others before taking his own life. Police initially characterized the event as apparent workplace violence while investigating whether terrorism was a factor. The incident became one of the most consequential events associated with the company's facilities, although it was not a product or financial controversy. FreightCar America later continued to consolidate and reposition its assets. In 2018, The Andersons agreed to buy the Danville facility, intending to convert it into a rail-car repair center. The planned services included repair, painting, blasting, cleaning, tank-car certification, and scrapping. The facility's location on the CSX network and its ability to store railcars supported its proposed role in repair and fleet services rather than new-car production. In 2020, FreightCar America announced that it would close its Cherokee, Alabama plant. The company attributed the decision to a depressed rail-car market and the economic effects and continuing threat of COVID-19. Layoffs were planned from November 2020 through February 2021, with most occurring in December. At that point, the company said its new rail-car manufacturing was concentrated in Castaños, Mexico, while aftermarket parts were made in Pennsylvania. The Castaños site became central to the company's manufacturing strategy and workforce base. Leadership changed in the following years. In May 2022, James Meyer announced his intention to retire as CEO once a successor had been selected. In March 2024, Nicholas Randall was appointed CEO after overseeing expansion at the Castaños facility. Meyer moved into the role of executive chairman and remained on the board. This transition underscored the strategic importance of the Mexican manufacturing operation and the company's continuing effort to align its production footprint with the economics of the freight-car market.

1. 2024Nicholas Randall becomes CEO

   Nicholas Randall was named CEO, while James Meyer became executive chairman.

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2. 2020Cherokee closure announced

   The company announced the planned closure of its Cherokee, Alabama plant and staged layoffs extending into 2021.

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3. 2018Danville facility sale agreement

   The Andersons agreed to acquire the Danville facility for conversion into a full-service rail-car repair operation.

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4. 2017Roanoke facility idled

   Following layoffs announced earlier in the year, FreightCar America announced that its Roanoke plant would be idled.

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5. 2016Roanoke workplace shooting

   A shooting at a company building killed one employee and wounded three others before the perpetrator died by suicide.

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6. 2011Roanoke reopening announced

   The company announced plans to reopen Roanoke after receiving a 1,500-car coal-car order from Norfolk Southern Railway.

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7. 2009Production declined and Roanoke closed

   Reported production fell to 3,377 cars, and the Roanoke plant was closed amid weak economic conditions.

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8. 2008Peak reported production before the downturn

   The company produced 10,349 freight cars during 2008 before a sharp contraction in output the following year.

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9. 1901Operations begin

   FreightCar America's operations trace back to 1901, marking the beginning of its long involvement in freight-rail equipment.

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A specialized North American rail-equipment provider focused on freight-car manufacturing, repair, leasing, and aftermarket parts for bulk-material and industrial transportation.

• Freight railcarsRailway rolling stock

  FreightCar America manufactures railcars for industrial and bulk-material transportation. Historical applications have included coal, metals, wood products, automobiles, and other freight categories. Demand for these vehicles is tied to railroad fleet replacement, commodity movements, leasing-fleet requirements, and new transportation contracts.

• Coal carsBulk-material railcars

  Coal cars form one of the specifically identified freight-car applications associated with the company. FreightCar America's 2011 Roanoke reopening announcement followed an order for 1,500 coal cars from Norfolk Southern Railway, demonstrating the importance of large railroad fleet orders to plant utilization.

• Aftermarket railcar partsRailway components

  The company manufactures parts used in freight cars built by FreightCar America and by other manufacturers. This aftermarket activity supports the maintenance and repair of existing fleets and provides a business line less dependent on the timing of complete new-car orders. Production of aftermarket parts has been associated with the company's Pennsylvania operations.

• Railcar repair and leasingRailway services

  In addition to manufacturing, FreightCar America has engaged in repairing and leasing freight cars. These services extend the relationship with fleet owners and railroad customers beyond the initial sale of a rail vehicle and support the broader lifecycle of freight equipment.

• 2024Change chief executive and elevate manufacturing leadershipStrategy

  James Meyer had announced a planned CEO retirement in 2022, and the company conducted a search for a successor.

  What changed. Nicholas Randall became CEO after overseeing expansion of the Castaños manufacturing facility; Meyer became executive chairman.

  Aftermath. The transition preserved Meyer's board-level involvement while placing operational leadership with an executive associated with the company's principal manufacturing site.

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• 2020Close Cherokee manufacturing facilityStrategy

  Management cited a depressed rail-car market and the economic disruption and continuing threat associated with COVID-19.

  What changed. FreightCar America announced the planned closure of its Cherokee, Alabama plant, with layoffs scheduled in stages from November 2020 through February 2021.

  Aftermath. New rail-car manufacturing was concentrated in Castaños, Mexico, while aftermarket-parts production remained in Pennsylvania.

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• 2018Sell Danville facility to The AndersonsM&A

  FreightCar America was reshaping its facility network and The Andersons sought a site for expanded rail-car repair and related services.

  What changed. The Andersons signed an agreement to purchase FreightCar America's Danville, Illinois facility.

  Aftermath. The planned conversion shifted the site toward repair, cleaning, painting, certification, scrapping, and other rail-car services.

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• 2011Reopen Roanoke after major coal-car orderStrategy

  The Roanoke facility had been closed in 2009 during weak economic conditions. A large order from Norfolk Southern created a basis for restoring production.

  What changed. FreightCar America announced that it would reopen the Roanoke plant to support an order for 1,500 coal cars.

  Aftermath. The plant later experienced further layoffs and was ultimately announced for idling in 2017.

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• 2016Roanoke workplace shootingControversy

  On October 25, 2016, a former employee opened fire at a FreightCar America building in Roanoke, Virginia. One employee, David Wesley Brown, was killed and three others were wounded. The shooter then died by suicide. Police described the incident as apparent workplace violence while investigating whether terrorism was involved.

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• 2024Nicholas Randall named chief executive

  Nicholas Randall became FreightCar America's CEO after overseeing expansion of the company's manufacturing facility in Castaños, Mexico. James Meyer became executive chairman.

  Leadership change
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• 2022James Meyer announced CEO retirement plan

  The company announced that James Meyer would retire as chief executive after a search for a successor, while remaining involved in the company's governance.

  Leadership change
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• 2020Cherokee facility closure announced

  FreightCar America announced plans to close its Cherokee, Alabama facility, citing the depressed rail-car market and the continuing effects of the COVID-19 pandemic. Layoffs were scheduled in stages into early 2021.

  Other
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• 2018The Andersons agreed to acquire Danville rail-car facility

  The Andersons signed an agreement to purchase FreightCar America's Danville, Illinois facility and planned to operate it as a full-service rail-car repair and processing site.

  M&A
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• 2017Roanoke plant layoffs and idling announced

  FreightCar America announced layoffs at its Roanoke plant and later said the facility would be idled in June.

  Other
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• 2014Danville facility employment temporarily restored

  The Danville, Illinois plant brought back more than 100 employees amid expectations of additional work, although later announcements indicated that layoffs would resume.

  Other
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• 2011Roanoke plant closure followed by planned reopening

  After the Roanoke, Virginia facility had been closed during weak economic conditions, FreightCar America announced that it would reopen the plant following an order for 1,500 coal cars from Norfolk Southern Railway.

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1. FreightCar America