WINNIPEG, June 16, 2011 /CNW/ - New Flyer Industries Inc. (TSX: NFI.UN)
("New Flyer" or the "Company"), the leading manufacturer of heavy-duty
transit buses in Canada and the United States, announced today that the
Company has signed a new three-year agreement with Metrolinx for up to
287 diesel and/or diesel-electric hybrid 40-foot heavy-duty transit
buses for a total value of up to C$114 million. Orders and deliveries
under this agreement are expected to occur between 2011 and 2013.
Under this program, participating agencies located in the Province of
Ontario can acquire new buses with additional provincial financial
support. This Metrolinx contract is for New Flyer's newest bus model,
Metrolinx, based in Toronto, Ontario, Canada, was created in 2006 and is
an agency of the Ontario government. Its mission is to integrate and
improve all modes of transportation in the Greater Toronto and Hamilton
area of the province. Several Ontario municipalities and regions are
participants in this contract, including Barrie, Burlington, Durham
Region, Hamilton, Kingston, London, Milton, North Bay, St. Catharines,
Welland, Windsor and York Region. Additional Ontario municipalities may
also be able to participate in this agreement providing they meet
certain conditions. To date, the following transit systems have
obtained board approval for purchases of buses to be built in 2011 as
part of this contract:
Windsor Transit - five hybrid buses
Durham Region - fifteen diesel buses
London Transit - twelve diesel and hybrid buses
This is the third such contract awarded by Metrolinx, and all three have
been awarded to New Flyer. New Flyer has delivered a total of 378
buses to 13 Metrolinx participants under the first two contracts. Since
1988, New Flyer has delivered over 2,800 buses in Ontario, 68 of which
have been the new Xcelsior models.
"We are pleased to be awarded this contract for the third consecutive
time from our longstanding customers in the Province of Ontario, and we
look forward to continuing to build these valuable relationships," said
Paul Soubry, New Flyer's President and Chief Executive Officer. In
April, the Company announced that it plans to open a new parts
distribution center in Ontario in 2011 to serve this region with
improved response time and support for a wide assortment of parts for
both New Flyer and other common makes and models of transit buses.
"Ontario and specifically Metrolinx represents an important customer
base for New Flyer and we are committed to providing total support
solutions to better serve this region and assist our customers in
reducing their total bus cost of ownership."
"Metrolinx is pleased to be able to support municipalities by providing
fully accessible, clean diesel and diesel-electric hybrid buses that
will better support public transit not only in the Greater Toronto and
Hamilton Area (GTHA) but also across the province," said Bruce McCuaig,
Metrolinx President and CEO. "This partnership among Metrolinx,
participating municipalities and New Flyer is an important example
of how different groups can effectively work together to provide safe,
efficient, comfortable, environmentally-friendly travel alternatives."
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in
Canada and the United States. The Company's three manufacturing
facilities -- in Winnipeg, MB; St. Cloud, MN; and Crookston, MN - are
all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company
currently operates a parts fabrication facility in Elkhart, IN and
three parts distribution centers (PDC) in Winnipeg, MB; Erlanger, KY;
and Fresno, CA. A fourth PDC is expected to open in Ontario in 2011.
With a skilled workforce of over 2,000 employees, New Flyer is a
technology leader, offering the broadest product line in the industry,
including drive systems powered by clean diesel, LNG, CNG and electric
trolley as well as energy-efficient diesel-electric hybrid vehicles.
All products are supported with an industry-leading, comprehensive
parts and service network. The Company's income deposit securities are
traded on the Toronto Stock Exchange under the symbol NFI.UN. Further
information is available on New Flyer's web site at www.newflyer.com.
This press release may contain forward-looking statements relating to
expected future events and financial and operating results of New Flyer
and New Flyer Industries Canada ULC ("NFI ULC") that involve risks and
uncertainties. Although the forward-looking statements contained in
this press release are based upon what management believes to be
reasonable assumptions, investors cannot be assured that actual results
will be consistent with these forward-looking statements, and the
differences may be material. Actual results may differ materially from
management expectations as projected in such forward-looking statements
for a variety of reasons, including market and general economic
conditions and economic conditions of and funding availability for
transit agencies to purchase buses, parts and services, customers may
not issue purchase orders for all or any of the buses available under
open purchase contracts such as the one discussed in this press release
and the other risks and uncertainties discussed in the materials filed
with the Canadian securities regulatory authorities and available on
SEDAR at www.sedar.com. Due to the potential impact of these factors, New Flyer and NFI ULC
disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.
SOURCE New Flyer Industries Inc.
For further information:
New Flyer Industries Inc.
Chief Financial Officer