Ladies and gentlemen, good morning and welcome to the FreightCar America third quarter 2008 earnings conference call. (Operator instructions) An audio replay of the conference call will be available beginning at 1 p.m. Eastern Daylight Time today until 11:59 p.m. Eastern Daylight Time on November 6, 2008. To access the replay, please dial 800-475-6701. The replay pass code is 965694. An audio replay of the call will be available on the company’s website within two days following the earnings call. I would now like to turn the conference over to Kevin P. Bagby, Vice President of Finance and Chief Financial Officer of FreightCar America. Mr. Bagby, please go ahead.

Thank you Anna. Before we begin, I would like to remind everyone that statements made during this conference call relating to the company's expected future performance or future business prospects, events, and plans may include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Certain risks and uncertainties may cause forward-looking statements to differ from actual results including, among other things, the cyclicality of our business, adverse economic and market conditions, fluctuating costs of raw materials including increase in surcharges and additional risk factors described in our earnings release for the third quarter of 2008 and in our Annual Report on Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements represent our estimates and assumptions only as of the date of this call. We expressly disclaim any duty to provide updates to our forward-looking statements whether as a result of new information, future events, or otherwise. Our earnings release for the third quarter of 2008 is posted on the company's website at www.freightcaramerica.com. I would now like to turn the call over to Chris Ragot, our President and CEO.

Thank you, Kevin, and good morning. I would like to welcome you to FreightCar America’s third quarter 2008 earnings all. Before we discuss the quarter, I would like to note that this will be Kevin’s last earnings call with us as CFO. On behalf of the Board and rest of the management team, I would like to thank Kevin for his considerable contributions over the years and wish him luck with his future endeavors. We have initiated search for a new CFO and we will keep you apprised of that situation. Now on the business in hand, I am going to discuss the highlights of the company’s performance in the third quarter. Then, Kevin will provide a detailed review of our financial performance. While the macroeconomic trends and specifically the performance of the railcar sector has had an impact on our performance on both year-over-year and sequential comparison, we are pleased with our financial results for the third quarter. Total sales revenues in the third quarter of 2008 were $238 million while we incurred a net income of $7.4 million or a net income of $0.62 per diluted share. Despite the pressure of this difficult operating environment, our strong balance sheet combined with our continued focus on strategic initiatives towards cost reduction and improving our manufacturing capacity has positioned us to weather the current industry cycle. Regarding the railroad market, US and Canadian commodity rail loadings for the third quarter of 2008 were down 1.9% when compared with the third quarter of 2007 levels, yet coal car loadings for the quarter were above 2007 level by 4%, record loadings of Powder River Basin Coal by Western Rails, as well as export driven loadings for Eastern Rails continued or contributed to this significant year-over-year growth for the quarter. Sea borne movement of US coal is continuing to increase the US coal export, increasing by 13.4 million tons or 36% year-to-date through August 2008 over export totals for the same period of 2007. This trend in export activity is expected to continue into 2009. Increased demand is being driven by several factors including increased industrialization and attendant demand for coal-fired electricity generation in emerging markets including India and China.

On the intermediary horizon, we expect coal to remain strong as the primary fuel source for electricity generation. We expect that coal will continue to provide roughly half of the projected fuel source for total electricity generated during the foreseeable future. There are currently 52 coal-fired plants, which are either under construction, near construction, or permitted for construction. These 52 plants are expected to add approximately 27,000 megawatts of coal-fired capacity requiring up to 20,000 coal cars. Of these, 29 plants are approximately 16,500 megawatts of capacity are under current construction. Clearly, a long-term demand for our main products and services is healthy and we are confident that FreightCar America remains well positioned to capitalize on this increased demand. I now would like to spend a few minutes discussing the company’s efforts to mitigate the current economic conditions. During the past few quarters, we have worked diligently on cost reduction initiatives to generate margin improvement. Since May 2008, we have provided variable price quotations, which provided for coverage of material price escalation as we saw to offset increases and input costs and competitive pricing in our industry. As of late, surcharges on raw material components have begun to decrease from recent highs. Although, the surcharges are highly unpredictable and have adversely affected our profits, we are encouraged by this recent development. However, these are all factors that are largely beyond our control while we constantly seek to mitigate their impact wherever possible. We continue to focus on the items that are within our control specifically our cost control initiatives and growth strategy. Using a disciplined approach, we are committed to reducing costs throughout the organization and improving our competitive position. We continue to support and measure our recently established cross-functional margin improvement teams, and our value engineering team, which have…

Thank you, Chris. I would like to add that while it was a difficult decision for me to leave the company, I know that FreightCar America’s management team will continue to build value going forward for all stakeholders. Order activities in the third quarter were 2,329 units, which represent an increase of 893 units or 62% from the units ordered in the second quarter of 2008 of 1,436. We expect order activity to remain uneven for remainder of the year as we continue to be challenged by this difficult market. Railcar deliveries totaled 3,082 units in the quarter, including deliveries of 2,712 cars sold and 370 cars leased. That compares to 1,921 units in the same period in 2007. Correspondingly, our total backlog of unfilled orders were 4,401 units at the end of the quarter compared with 4,917 units at the end of the second quarter of 2008, and 4,930 units at September 30, 2007. Our sales revenue for the third quarter of 2008 was $238 million. That compares with $162.1 million for the third quarter in 2007. This increase of 47% is attributed primarily to higher demand for coal cars reflecting the macroeconomic issues addressed earlier, including shipments of export coal and increased coal car loadings on the Powder River Basin. As a result of the competition and market condition, average selling prices declined in the third quarter of 2008 as compared with the third quarter of 2007. This reflects a shift in product mix, the car types with different material costs, and more importantly pricing pressures dictated by current market condition. Our gross margin for the quarter was $18.4 million, and that compares to $19.4 million for the third quarter of 2007, a decline of $1 million. The corresponding margin rate was 7.7% compared with 12% generated in…

Thank you, Kevin, and again I like to thank you for your contributions and wish you luck with your future endovenous. As we face a challenging macroeconomic environment and intensive competition, our management team is focused on improving our cost structure and our competitive position, which will benefit FreightCar America going forward. In addition, our financial strength will enable us to navigate the challenging economic environment. In closing, I would like to thank you for your interest in our company and for participating on this call, and we look forward to updating you again during the next conference phone call. We are now ready for questions Anna.

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

Kevin Sterling – Stephens 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?

A combination of Class-1 utilities, and I would say, a smothering of the leasing companies. Kevin Sterling – Stephens Inc.: Okay, was it primarily driven by the Class-1’s or it is essentially broken up?

I would say that was a healthy portion of it, yes. Kevin Sterling – Stephens 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?

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

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 Sterling – Stephens 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?

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. Kevin Sterling – Stephens Inc.: Okay thank you, and one last question, Chris. Would you guys consider a stock buyback at the current level?

You know, stock buyback is always an option, and those are kind of things that myself and Kevin have dialog with the Board with. So, is it an option, absolutely. Is it something we are going to execute on, I do not know at this time. It is something that we will have discussions with, especially with the Board as we move forward. Kevin Sterling – Stephens Inc.: Okay. Can I ask one more question? Do you have a timetable for completing the ERP system?

ERP system, right now I would say, we will complete it sometime in 2009. Kevin Sterling – Stephens Inc.: Okay. Well, Chris thank you so much for your time. Kevin, thank you, and best of luck to you Kevin.

Thank you Kevin.

Take care.

Our next question comes from Kim Burkhart [ph] from Burkhart Research [ph]. Please go ahead.

Good morning Kim. Kim Burkhart – Burkhart Research: Good morning. Some of my questions were just answered, but I am wondering if you have got an idea how the falling of scrap prices for steel is going to affect the company’s decision to scrap older cars?

Well, I cannot speak on behalf of what our customers feel about that issue, but I am encouraged that the input costs have come down significantly here in the last 60 days, and I am not sure where that is going to trend for the future, but I would say, we are encouraged that input cost is coming down thus allowing us to be offering a price to our customers, but it has been lower than it was this past summer. The scrapping of cars – it is too early to say what decision would be made around that, but it is really a question for our customers more than us. Kim Burkhart – Burkhart Research: Okay, well thanks a bunch.

Yes, thank you.

Our next question is from Michael Gallo from C.L. King. Please go ahead. Michael Gallo – C.L. King: Hi, good morning.

Good morning Michael. Michael Gallo – C.L. King: My question is on the Danville facility; I believe the labor contract is up at the end of this week. I was wondering if you can give us any commentary on that?

We have been engaged with that now, you know, for the last two months and the talks are going well. Everybody is in good spirit. The cooperation level is exactly where I thought it would be. It is high, and so, I am encouraged that everything is moving along in a very positive fashion there right now. Michael Gallo – C.L. King: Okay great, that is helpful. And then second question, and I guess it comes back to your commentary on quoting activity, I was wondering what the significant recent decline in aluminum and steel prices – whether it might cause some of your customers to actually look to accelerate orders, as obviously, a lot of the surcharges would have gone down and certainly it seems like from what we hear out of most of the coal companies anyway, they tend to be contracted for 2010 with expectations that things are going to be up or through most of 2010, that things are going to be up from the levels that they are at in 2008?

You know, we are encouraged with the input costs coming down here related to surcharges. It has been a major change from what it was at the peak of July of this year. So, I think the net effect of that is that pricing is going to be something that our customers will be encouraged by, and so we will increase activities for 2009, we are hoping so. Michael Gallo – C.L. King: Okay great. That is helpful, thank you.

And our next question comes from Steve Barger from KeyBanc.

Hi Steve. Joe Radigan – KeyBanc Capital Markets: Hi, good morning. This is actually Joe Radigan on the line for Steve.

Okay Joe. Joe Radigan – KeyBanc Capital Markets: Just a follow-up to the manufacturing capacity, if you saw deliveries, if they look like they are going to drop in the $4,000 to $5,000 range on a run rate basis, would you consider idling another plan or what actions would you take to maintain margins?

Are you talking about 4,000 to 5,000 units? Joe Radigan – KeyBanc Capital Markets: Yes.

You know, we have been all along adjusting our manufacturing footprint and our capacity when we feel it is needed. We have been doing that ever since I have been on Board, and to answer your question, if there are additional changes to be made regarding our footprint and our capacity – line capacity, we will make those. Joe Radigan – KeyBanc Capital Markets: Okay, and then can you talk about the fall – the recent fall in coal prices? Do you guys look at that as a leading indicator of coal car orders or why would not that be a leading indicator for coal car orders?

I do not focus a lot of our time and attention on that, but I do keep an eye on it, I do know Kevin if you want to –?

I think coal car loading is a better indicator of where coal car activity is going forward, not necessarily the price of coal.

Yes, but I have been encouraged with the loadings here, obviously this year, and they seem to continue to be strong, and I think that will continue during the fourth quarter also. Joe Radigan – KeyBanc Capital Markets: Right, okay, and then last question. In terms of CFO – your CFO search, can you a talk a little bit of how far long are you and what characteristics – kind of define the candidate that you are seeking and would you wait to make an acquisition until a new CFO is in place or is that not going to be an issue?

Well, first of all, we are well into the process. Second thing, I do not think it is appropriate for me here on this call to talk about the characteristics per se, although clearly I am looking for a candidate that has all the requirements needed to be a CFO of a public company. Beyond that, I would say that we have the staff in place that will allow us to execute on those opportunities if those opportunities come up in the next month or two, then we will be able to execute on that with the folks that we have in our organization and with the members that we have on our Board, but I will say – emphasize again, we are well into the search process right now. Joe Radigan – KeyBanc Capital Markets: Okay, very good. Thanks a lot.

(Operator instructions) And there are no questions in the queue at this time.

All right, well, Anna, I want to thank you very much. Again, I would like to just say thank you for Kevin for all his hard work in this organization. We wish him well, and thank you again for participating in this call. Look forward to our future calls.

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and you may now disconnect.