Arts & Life
Canstar Community News
Hey there, time traveller!
This article was published 23/3/2017 (1206 days ago), so information in it may no longer be current.
New Flyer Industries is now a $2-billion company.
To be exact, $2.3 billion.
The bus manufacturer headquartered in Winnipeg posted a revenue increase of 47.8 per cent to $2.3 billion and a 131.7 per cent bump in profit to $124.9 million for 2016 compared to the year before.
After its first full year of ownership of Motor Coach Industries, New Flyer beat most analysts' estimates for the quarter and the year.
The substantial increases in top- and bottom- line results have a lot to do with the addition of Motor Coach, and is also a result of a 5.6 per cent increase in the average selling price of both transit buses and motor coaches for the year, partly owing to sales of more higher-priced, lower-emission models.
Revenue from aftermarket operations in 2016 increased 27 per cent to $409.3 million in 2016, primarily a result of revenues generated by MCI. But taking into account the revenue from a special mid-life overhaul program for the Chicago Transit Authority, the core aftermarket revenue in 2016 remained essentially flat, compared to 2015.
The company almost doubled the free cash flow generated — $216.3 million — and paid out only 25 per cent of that in dividends.
In its outlook, management said it expects to make and deliver about 3,650 new transit buses and motor coaches during 2017, an increase of four per cent from 2016.
Management is forecasting a lower growth rate in the aftermarket segment for 2017 due to the fact that there has been a lot of fleet replacements in recent years.
The company has said it will review the dividend rate during the current quarter.
Analysts are looking for an increase in the New Flyer's current annualized dividend rate of $0.95 per share.
Martin Cash has been writing a column and business news at the Free Press since 1989. Over those years he’s written through a number of business cycles and the rise and fall (and rise) in fortunes of many local businesses.
Your support has enabled us to provide free access to stories about COVID-19 because we believe everyone deserves trusted and critical information during the pandemic.
Our readership has contributed additional funding to give Free Press online subscriptions to those that can’t afford one in these extraordinary times — giving new readers the opportunity to see beyond the headlines and connect with other stories about their community.
To those who have made donations, thank you.
To those able to give and share our journalism with others, please Pay it Forward.
The Free Press has shared COVID-19 stories free of charge because we believe everyone deserves access to trusted and critical information during the pandemic.
While we stand by this decision, it has undoubtedly affected our bottom line.
After nearly 150 years of reporting on our city, we don’t want to stop any time soon. With your support, we’ll be able to forge ahead with our journalistic mission.
If you believe in an independent, transparent, and democratic press, please consider subscribing today.
We understand that some readers cannot afford a subscription during these difficult times and invite them to apply for a free digital subscription through our Pay it Forward program.
Updated on Thursday, March 23, 2017 at 2:14 PM CDT: Corrects reported profit.