Bombardier's Trade Comeback

Posted by Daniel Workman Dec 29, 2006

Since the end of September 2006, Canadian manufacturer Bombardier has seen a substantial rise in the number of contracts the Montreal-based company has won around the world.

While Bombardier's jet division continues to struggle both with sales and operating margins, the firm's transportation division has signed more than 15 large deals ranging from a joint venture in Shanghai, China for building subway trains to an upgrade project on the moving sidewalks at a Las Vegas airport.

Over the timeframe in which those deals were announced, Bombardier's stock price (BBD.B on TSX) has seen a double-digit increase from about $3.50 to $4. If Bombardier continues its success in selling transportation contracts, Bombardier's stock may well represent the comeback of 2007 for a Canadian manufacturing company thanks to thriving customer demand and international trade.

Below are some of the headlines announcing deals signed by Bombardier in the latter part of 2006.

• Bombardier Transportation Signs $549 Million US Contract With Spanish National Railways RENFE To Supply 100 Traxx Locomotives (December 28, 2006)
• Bombardier To Supply 50 VIRM Intercity Trains Worth $569 Million US To Dutch National Railways (December 27, 2006)
• Bombardier Wins $61 Million US Contract For Electrical Multiple Units In Perth, Western Australia (December 21, 2006)
• Bombardier Signs Contract To Build 234 Subway Cars For Toronto (December 21, 2006)
• Bombardier Wins AU$80 Million Contract For Electrical Multiple Units In Queensland, Australia (December 19, 2006)
• Bombardier Wins 467 Million Euro Order From SNCF For 112 Additional High-Capacity AGC Trains (November 24, 2006)
• Bombardier Awarded $99 Million US Contract For Advanced Rapid Transit Cars In Vancouver (November 23, 2006)
• Bombardier Transportation France Signs 2.7 Billion Euro Contract With French National Railways SNCF To Supply 372 Trains For The Greater Paris / Ile-De-France Suburban Network (November 22, 2006)
• Bombardier Signs $43 Million US Contract for Additional Work On The Airport People Mover System in Las Vegas, USA (November 09, 2006)
• Bombardier Selected By Spanish National Railways RENFE To Supply 100 TRAXX Locomotives (November 08, 2006)
• Bombardier: Swiss BLS Orders 13 Multiple Unit Commuter Trains For 58 Million Euros (November 08, 2006)
• Bombardier And Chinese Joint Venture Partners Win 257 Million Euro Order For MOVIA Metro Cars In Shanghai (November 06, 2006)
• Bombardier Selected By French National Railways SNCF To Supply The Future Ile-de-France Commuter Train For 2.7 Billion Euros (October 25, 2006)
• Bombardier Consortium Awarded Contract For Advanced Rapid Transit Cars In Kuala Lumpur, Malaysia (October 13, 2006)
• Bombardier: Deutsche Bahn Orders 42 New Prize-Winning Double-Deckers For $73 Million US (October 09, 2006)
• Bombardier Signs US $1,650 Million Contracts For Rapid Rail System In South Africa (September 28, 2006)