Winnipeg Free Press - ONLINE EDITION
Posted: 01/10/2013 2:49 PM | Comments: 0
It’s getting more difficult to find a seat on the bus and that’s good news for Winnipeg bus maker New Flyer Industries.
After struggling through a period of weak orders following the big financial recession, New Flyer’s order books are getting much stronger.
Total order activity in the second half of 2012 was much better than the previous four quarters and represents the third consecutive quarter of improved orders.
In the fourth quarter of 2012 the company booked total orders — including both firm orders and options — of 1,055 equivalent units, representing the company’s highest level of order intake since the fourth quarter of 2008.
An equivalent unit (EU) gives an approximate measure of the size of a bus, and a longer than typical 40-foot bus represents two units.
New firm orders were received in the fourth quarter of 2012 for 407 EUs with a total value of $191.6 million, a significant increase compared to firm orders of just nine EUs valued at $3.8 million in the fourth fiscal quarter ended January 1, 2012.
New options were received in the quarter for 648 EUs worth $273.1 million, compared to no new options awarded during the same period in 2011.
New Flyer was also successful at converting options for 190 EUs with a total value of $74.6 million during the quarter as compared to 152 EUs with a total value of $64.4 million last year.
In addition to New Flyer’s success in building its order book, the total bid universe — an indicator of the forecast for overall transit bus market demand and active bids — has increased by 46 per cent in the last year.
New Flyer’s order activity could receive an early boost in the first quarter of 2013 with the possibility of a big sale to LA Metro.
The Los Angeles transit authority has recommended to its board to buy 550 New Flyer compressed natural gas buses for $302.9 million and an option for an additional 350.
That recommendation goes before a committee of L.A. Metro’s board on Jan. 17. and to the full board, on Jan. 24.
New Flyer shares were up 24 cents to $8.87 on about twice the normal trading volume.
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Australia signs up to negotiations on Chinese-led bank
Bird flu found in a top Minnesota turkey producing county
Some British Airways frequent flier accounts miles breached
Duke Energy CEO loses $600K in pay over coal ash pollution
John Baird is adviser to Barrick Gold
Nation's biggest nuclear firm makes a play for green money
Future Shop stores closing, 1,500 jobs lost
24-storey D CONDO TOWER set to rise on site of the former Restaurant Dubrovnik
Google to help build OR robots
Banning antibiotics what consumers want
Apple boss to give away fortune
The vacation bucket list
GOP-guided budget sets up battles between Congress and Obama
Chinese president promotes regional vision at Boao Forum
Sky's still the limit
JetBlue pilot who yelled during flight sues airline for $16M
Up Periscope... and other apps
About 4,000 fishermen stranded on Indonesian islands
Bank chief happy with rate cut
Internet outages reveal gaps in US broadband infrastructure
Tax change helps families with children under 18
2 more Galileo satellites launched from French Guiana for EU
Obama urges expansion of 'take child to work' day
California woman, friend charged in alleged baby-theft plot
Brazil's economy barely avoided recession last year
Feds table legislation for family tax package
Dow Chemical and Carnival are big market movers
Most actively traded companies on the TSX
Senate approves long-delayed bill to boost energy efficiency
Altera stock soars on report of sales talks with Intel
How the Dow Jones industrial average fared Friday
North Dakota loses lowest jobless rate as oil prices slide
RadioShack bankruptcy hearing drags on, Salus plans new bid
Audit: Maryland misallocated $28.4M for health exchange
Massachusetts governor asks for snow disaster declaration
Yellen: A rate increase may be warranted later this year
German airline could face 'unlimited' damages for Alps crash
B.C. regulators issue $51.7M in penalties