NewswireToday - /newswire/ -
Winnipeg, Manitoba, Canada, 2010/08/20 - The Board of the New York Metropolitan Transit Authority (the “MTA”) has awarded New Flyer of America Inc., a subsidiary of New Flyer Industries Inc. (TSX:NFI.UN) (“New Flyer” or the “Company”), a contract for up to 475 buses. TSX: NFI.DB.U
The contract is for 135 40-foot compressed natural gas (“CNG”) heavy-duty transit buses with options for up to an additional 340 CNG buses. This order adds approximately USD $216 million to the current New Flyer backlog.
These CNG buses will be operated by the New York City Transit Authority (the “NYCTA”) and the MTA Bus Company (“MTA Bus”). Two pilot buses will be delivered to the MTA in the second quarter of 2011, with the balance of the base order delivered in the fourth quarter of 2011 and early 2012. The MTA is the largest transit agency in North America, and is responsible for public transportation in the state of New York. In addition to providing bus service through the NYCTA, MTA Bus, and Long Island Bus, MTA also manages commuter rail lines, subways, bridges and tunnels. It transports more than 11 million passengers on an average weekday and accounts for approximately 30% of all transit trips in the US.
After an extensive evaluation process, New Flyer was selected for this procurement for its ability to build reliable, high-quality transit buses. New Flyer currently has an agreement with MTA to provide warranty and campaign support services on site in New York demonstrating the “best bus value and support for life” approach actively deployed by New Flyer. To date, New Flyer is ahead of the campaign support schedule specified in the agreement and costs have been maintained within estimates provided in the Company’s warranty provisions. Since 1996, New Flyer has delivered 823 buses to the MTA, including 630 60-foot diesel buses, three 45-foot diesel buses and 190 40-foot CNG buses for a total of 1,453 EUs.
“We are elated to have been selected for this procurement,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. “New Flyer is pleased that our commitment to building a superior product and holistic support methodology is being rewarded. We see this as a testament to the high quality of New Flyer buses, not only the 190 CNG buses currently in service in New York City, but also the many New Flyer CNG buses currently in service with transit agencies in 65 cities in the United States.” New Flyer is the recognized leader in integrated CNG fuel systems and first delivered CNG buses in 1994 to San Diego, and has delivered more than 3,500 CNG buses over the past 15 years.
“New Flyer is proud of the ongoing partnership between New Flyer and the MTA,” said Paul Smith, New Flyer’s Executive Vice President, Sales and Marketing. “We have worked hard to build and maintain this relationship and we find it fitting that the largest transit bus manufacturer can develop and enjoy such a strong and long-standing relationship with the largest transit system in North America.”
About New Flyer
New Flyer (newflyer.com) is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company’s three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. 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 gasoline-electric and 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.
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 and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at 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.