(The Canadian Press circulated the following story by Allan Swift on January 5.)
MONTREAL — Struggling Bombardier Inc. reported good news from its transportation division Tuesday after it was granted an order for 100 high-capacity passenger trains from French National Railways, worth about $576 million Cdn.
The regional trains, to be delivered between December 2007 and February 2009, will be produced at its major plant in Crespin, France, Bombardier Transportation said. Bombardier was selected in 2001 to build 500 of the regional trains for French National Railways.
Including the 100 trains announced Tuesday, the French national railway system has so far ordered 379 trains, of which the first deliveries began in January 2004. So far 30 are in service.
The trains come in various versions, able to seat from 160 to 220, depending on the number of cars.
The low-floor trains, which travel at up to 160 km per hour, can run on either diesel fuel, electricity or a combination of the two.
Berlin-based Bombardier Transportation, the world’s largest railway equipment maker, also manufactures high-speed trains, tramways and subway cars for customers worldwide.
Orders stood at $22 billion as of last Oct. 31.
Since then it has announced orders from Toronto, Marseille, France, Vienna, Madrid, Australia and China.
However, due to weak profit margins and over-capacity, Bombardier Transportation announced during 2004 plans to cut 21 per cent of its workforce of 35,600 by April 2006, eliminating 7,600 employees – including 500 in Ontario and Quebec.
Last month, parent company Bombardier Inc. ousted Paul Tellier as chief executive after bond rating agencies cut its credit ratings to “junk” status.
The company’s other main division is aerospace, which has also laid off thousands of employees to compensate for slowing regional jet sales.
Bombardier shares (TSX:BBD.SV.B) were off five per cent Tuesday on the Toronto Stock Exchange, down 13 cents at $2.25.