Yahoo Finance Bombardier, Inc.’s Business Keeps on Booming in the New Year
Bombardier, Inc. (TSX:BBD.A)(TSX:BBD.B) finished 2016 in style, netting numerous deals that helped the stock surge, and 2017 has been no different.
BBD.A shares have already risen 16.3% in 2017, while BBD.B stock is up 22.7% in the new year. The company recently passed the Challenger maintenance milestone in which it logged more than 7.3 million flight hours, while successfully passing 4.3 million landing, proving the company is going strong.
Bombardier also announced that its PRIMOVE e-bus passes have passed the 500,000 km milestone. The vehicles help to lower carbon emissions because they are electric, ensuring that the future of the automotive industry in Canada is greener. So far, the PRIMOVE buses have saved 527 tonnes of CO2 emissions. These products are popular, affordable, and convenient.
The company also reassured the head of the Toronto Transmit Commission that the delay of its $1.2 billion order of streetcars is still on schedule to arrive by the 2019 date originally offered by Bombardier. Additionally, the company has several new projects in the works that look promising.
It?s been a good week for the Montreal-based transportation equipment manufacturer; it has inked a deal that will net Paris 71 new trains. The French capital?s deal with Bombardier is worth approximately $1.6 billion with Bombardier raking in about $480 million. The project is expected to churn out working trains in 2021.
Alstom SA is part of the consortium that is building this commuter trail, which will offer 255 two-tier trains overall after two other European companies exited negotiations for the project. The STIF transit authority on Paris?s Ile-de-France will cover this agreement. Bombardier?s share is about 30%, and the company will employ about 2,000 workers for both companies, helping to increase Bombardier?s footprint in Europe.
Also in Europe, Bombardier?s Berlin rail division has inked a deal with Austrian Federal Railways that could result in about 300 trains worth up to US$1.9 billion. The starting order is worth US$156 million for 21 Talent 3 electric trains. These vehicles will have a higher seating capacity than the old model by 50%, and they will be active in 2019, helping to link rural and urban areas as well as countries nearby.
Bombardier is proving that it can roll with the punches as it has revamped the marketing of 13 CRJ900 aircraft previously owned by the transportation provider, now heading towards Regional One. Two of these vessels were owned by Bombardier, while 11 were marketed once again through a third party. Eight of these aircraft were delivered in 2016, one was delivered this year, and the other four will be delivered later this year.
Bombardier is worth investing in now as 2017 continues to be profitable to investors. Between its projects in Canada and Europe, the transportation services provider is busy expanding its presence globally and adding to its workforce at home and abroad. As of January 18, BBD.A stock is trading at $2.72 a share, while BBD.B stock is trading at $2.65 per share.
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Fool contributor Karl Utermohlen has no position in any stocks mentioned.
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