Shares of machinery companies were trading lower on Friday after a KeyBanc Capital Markets analyst predicted lower demand for railcars.
Steve Barger said in a note to investors on Friday that he was "cautious" on railcar manufacturers' first-quarter outlooks due to lower loadings, or volume, for some types of railcars.
He said he was expecting demand for coal cars to slow due to improved efficiency among East Coast miners and an uncertain regulatory environment for coal-driven power producers. He also predicted that demand for tank cars, used largely for freight movement, would fall, as well.
Barger also pointed out that railcar makers could see higher raw material costs and lower prices for certain car types.
The analyst highlighted second-quarter results from railcar manufacturer Greenbrier Cos. _ which posted lower-than-expected profits on Wednesday due in large part to weaker railcar demand _ as a sign of difficult times ahead for railcar makers.
Shares of Greenbrier lost 81 cents, or 3.3 percent, to $23.52. Shares of mining machinery companies were lower on Friday. Bucyrus International Inc. fell $3.60, or 3.2 percent, to $108.64. Joy Global Inc. lost $2.11, or 3 percent, to $68.89. Terex Corp. was off $1.57, or 2.4 percent, to $65.17.
Other machinery companies were down. Middleby Corp. shed $2.31, or 3.5 percent, to $63.40. Columbus McKinnon Corp. lost $1.41, or 4.5 percent, to $29.66. Paccar Inc. was down $1.77, or 3.8 percent, to $44.55.
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