Innovative lightweight concept allows wider trams to use existing infrastructureBombardier wins contract to supply and maintain 30 FLEXITY trams for Dresden’s transport authority
Contract includes the FlexCare maintenance management system and the Obstacle Detection and Assistance System
Mobility solution provider Bombardier Transportation and Dresden’s transport authority Dresdner Verkehrsbetriebe (DVB), have signed a contract to supply and maintain 30 BOMBARDIER FLEXITY trams, equipped with the Obstacle Detection and Assistance System (ODAS) for preventing collisions. The contract also includes the FlexCare maintenance management system for a 24-year period. The value of the order is 197 million euro ($219 million US). In addition, an option for ten additional FLEXITY trams and eight more years of servicing and maintenance are included in the contract.
The new FLEXITY trams are wider than DVB’s current vehicles and offer significantly greater comfort for passengers with 2+2 seating and large panorama windows. The new trams will be able to carry up to 290 passengers, which is around a 10 percent increase. To allow barrier-free access while using the existing infrastructure, only the portion of the carbody which is above platform level is wider. The new fleet will be delivered by the end of October 2023.
“I am pleased that Dresdner Verkehrsbetriebe is counting on the employees’ competence, know-how and the quality of Bombardier’s products here in Saxony and that these modern light rail vehicles are being built at the Saxon sites. The future of both factories and Bombardier’s long-term commitment are very close to my heart. I am confident that Saxon products will also increasingly prevail in many tenders outside Saxony due to their quality, which combines innovation and sustainability,” emphasized Saxony’s Minister of Economic Affairs, Martin Dulig.
“We urgently need the new light rail vehicles, which provide larger capacity, in order to offer sufficient space for the rapidly growing number of our passengers,” said Andreas Hemmersbach, DVB’s Board Member for Finance and Technology. He added, “In a multi-stage selection process, criteria such as technology, price, service and design were evaluated on a points-based system. Of all the manufacturers, Bombardier offered us the best overall package.”
“We are proud to support our long-standing partner and customer DVB in their transport service expansion by supplying our innovative, reliable and air conditionedFLEXITY trams, offering generous multi-purpose areas and the highest safety standards. Our FlexCare maintenance management system not only ensures high availability and reliability, but also guarantees cost security over the entire term of the contract. Hand in hand with DVB, we will carry out servicing and maintenance of these FLEXITY trams together,” explained Alexander Ketterl, responsible for the urban transport business at Bombardier Transportation in Germany.
Michael Fohrer, Head of Bombardier Transportation Germany, added, “This contract will be carried out at our two sites in Saxony. The carbodies will be produced in our center of competence for carbodies in Görlitz. Final assembly and commissioning will be carried out at our industrial lead site in Bautzen.”
More than 4,000 trams and light rail vehicles from Bombardier are already successfully in operation or on order worldwide.
Bombardier Transportation, Orascom Construction PLC and Arab Contractors have signed an agreement today with National Authority for Tunnels in Cairo to design and build two new monorail lines in Egypt. On completion of the construction phase, the consortium will be responsible for the Operation and Maintenance (O&M) of both lines for 30 years. The total value of the design, build and O&M contract exceeds $4.5 billion US (4.1 billion euro). Bombardier Transportation´s share is $2.85 billion US (2.6 billion euro). Orascom Construction’s share of the overall contract is close to $900 million US. The agreement is subject to final signatures of supplementary documents.
Danny Di Perna, President of Bombardier Transportation, said, “To be selected as the monorail system supplier in Egypt is a great privilege and our fully-automated monorail system is the smart mobility solution for Cairo’s urban future.” He added, “Our INNOVIA Monorail 300 technology has proved to be a game changer in the industry, as it allows fast construction of high capacity transit lines at lower costs. With its advanced technology, unmatched safety features and attractive aerodynamic design, this proven platform will dramatically improve the quality of life for millions of residents by significantly reducing their daily commuting time as well as reducing traffic congestion and its impact on the city.”
H.E. Dr. Moustafa Madbouly, Prime Minister of the Arab Republic of Egypt, Danny Di Perna, President of Bombardier Transportation, H.E. Abelfattah Elsisi , President of the Arab Republic of Egypt, H.E. Kamel ElWazir, Minister of Transportation, Oscar Vazquez – President GROW Region Bombardier Transportation and H.E. Dr Assem Elgazzar, Minister of Housing, Utilities and New Urban Communities
Orascom Construction will design and build all infrastructure and civil works, including stations, guideway structures and new depot buildings.
Bombardier will design, supply and install the electrical and mechanical (E&M) equipment for the two lines including 70 four-car BOMBARDIERINNOVIA Monorail 300 trains (280 cars), BOMBARDIERCITYFLO 650 signalling and automatic train control technology, the Operation Control Centre, communication systems, platform screen doors and fare collection, power supply / power distribution systems as well as switch beams and depot equipment. It will also provide the overall E&M system integration, project management, systems engineering and integration, test and commissioning for the trains and signalling as well as operations and maintenance of the vehicles and wayside systems.
Monorail systems are perfect for congested cities needing a fast and cost-effective to build mass transit solution and the INNOVIA Monorail 300 system provides flagship performance in driverless operations. The compact, elevated system enables easy urban integration into existing infrastructure, and its iconic aesthetics and attractive infrastructure will help to shape Cairo’s identity as a modern thriving city.
New agreement continues long-standing relationship with San Francisco International Airport
Latest contract highlights Bombardier’s position as industry-leading services provider for automated transit systems
Mobility technology leader Bombardier Transportation announced today that it has signed a new contract with the City and County of San Francisco to provide ten years of operations and maintenance services for the BOMBARDIER INNOVIA APM 100 automated people mover (APM) system at San Francisco International Airport (SFO). The contract is valued at $220 million US (193 million euro) and includes an option for an additional five years.
“With this new contract, we will continue to provide San Francisco International Airport with the operations and maintenance services as well as the INNOVIA APM vehicles and signalling technology that bring safe and reliable service to the over seven million passengers who ride the AirTrain system every year,” said Elliot G. (Lee) Sander, President, Americas Division, Bombardier Transportation. “We look forward to supporting the airport as it extends and modernizes the AirTrain system to meet its future mobility requirements.”
Bombardier delivered the airport’s transit system, known as SFO AirTrain, and has been providing operations and maintenance services since it opened in 2003. The AirTrain fleet of 38 INNOVIA APM 100 vehicles serves nine stations along six miles of elevated guideway and connects the airport’s terminals, parking garages, rental car center, and a Bay Area Rapid Transit (BART) station. Under a contract awarded in 2016, Bombardier is providing three additional INNOVIA APM 100 vehicles, a 2,000-foot guideway extension, a new station, and a signalling upgrade.
Bombardier has nearly 50 years of experience in designing, building, operating and maintaining automated transit systems for airports and cities in North America, Europe, the Middle East and Asia. Nine of the ten busiest airports in the United States, including SFO, have chosen Bombardier for their automated transit systems.
SFO AirTrain was the world’s first automated transit system to feature the state-of-the-art BOMBARDIER CITYFLO 650 communications-based train control technology. Among other features, this technology allows a high degree of operating flexibility to accommodate peak passenger demands.
LAS VEGAS (AP) — A company backed by tech billionaire Elon Musk has been awarded a nearly $49 million contract to build a transit system using self-driving vehicles underneath the Las Vegas Convention Center.
The board of directors of the Las Vegas Convention and Visitors Authority approved the contract Wednesday with The Boring Company, the Musk-backed enterprise based in Hawthorne, California.
People would be transported underground on self-driving electric vehicles from three types of Tesla Model X chassis. The system will be capable of transporting up to 16 people at time through parallel tunnels, each running in a single direction. The twin tunnel system will run less than a mile (1.6 kilometer) long.
The system also will include a pedestrian tunnel and three underground stations accessible from convention center’s halls.
The company plans to immediately pursue permits to start construction in September. It aims to debut the system by December 2020.
“The first thing that’s important is to get it right,” Authority President and CEO Steve Hill told the Las Vegas Review-Journal . “We want to do it as quickly as possible, but we want our customers to be comfortable with it.”
Las Vegas Mayor Carolyn Goodman cast the only vote against the project. At a meeting last week, she cited concerns about hiring a company that has yet to deliver a transit system.
The authority will reimburse the company as it completes certain stages of the project, like completing excavation for the first station and digging the first 100 feet (30.5 meters) of the first tunnel. Full payment is contingent on the company demonstrating that the system can support an average of 4,400 passengers per hour.
Construction will be able to proceed without disruption to traffic or other surface activity, Hill said. The system also could be expanded, which could be part of the solution to the city’s transportation problems, he said.
NEW YORK – Amtrak will continue its Infrastructure Renewal program at New York Penn Station this summer by performing state of good repair work on JO railroad interlocking which directs Amtrak, Long Island Rail Road and NJ TRANSIT trains heading east and west from the East River Tunnels.
“Amtrak has made record levels of capital investment to improve the reliability of our infrastructure and overall customer experience, and we continue to do so in New York Penn Station for all the users of this important station,” said Amtrak President & CEO Richard Anderson. “We appreciate the continued support and confidence from our commuter partners and patience from our customers as we continue to deliver this important work safely, on time and within budget, improving the commutes for the many users of Penn Station.”
The total cost of the projects is estimated at $30 million, which will keep this important infrastructure in a state of good repair and benefit all users of Penn Station with an upgraded, state-of-the art railroad and more reliable service. The work on JO Interlocking will occur between Friday, June 28, and Monday, Sept. 2, including the renewal of critical infrastructure such as switches and turnouts at North America’s busiest train station.
Amtrak schedule adjustments will include:
• Northeast Regional Train 110 from Washington, D.C. to New York Penn Station will be cancelled. • Northeast Regional Train 127 from New York Penn Station to Washington, D.C. will be cancelled. • Northbound Keystone Train 640 will terminate at Newark Penn Station (NWK). • Southbound Keystone Train 643 will originate at NWK. • Southbound Keystone Train 653 will departe NYP early. • Cardinal Train 51 will depart NYP early on weekdays only. • Maple Leaf Train 63 and Adirondack Train 69 will be combined on the regular time slot for 63 and will split at Albany, N.Y. (ALB).
Customers booked on trains with a modified schedule will be contacted and accommodated on other scheduled services.Additional information and updates will be posted on Amtrak.com and Amtrak.com/NYPrenewal. To be notified of service disruptions on the Northeast Corridor (including Acela Express, Northeast Regional and other corridor services), follow @AmtrakNECAlerts on Twitter.
While Amtrak has maintained and repaired this aging infrastructure, some of which dates back to the 1970’s, full replacement is now required. During the summer of 2017, Amtrak kicked off its Infrastructure Renewal at New York Penn Station, and continued it in early 2018 and during the Summer of 2018. The Infrastructure Renewal program is one element of Amtrak’s overall plan to modernize stations, infrastructure and equipment on the Northeast Corridor.
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
The city of Chicago has selected Elon Musk’s The Boring Company to build a high-speed transit system connecting O’Hare Airport and downtown Chicago.
The plan calls for an underground tunnel system where passengers would be transported between Block 37 in the Loop and O’Hare Airport in just 12 minutes each way. (It takes about 40 minutes to get from O’Hare to downtown today via the Blue Line.) Autonomous, 16-passenger electric vehicles would hit speeds of more than 100 MPH and leave as frequently as every 30 seconds.
