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Bombardier (BBD) signs $255 million contract

Buzz on the Boards
0 Comments| July 14, 2009

Bombardier (TSX: T.BBD.B, Stock Forum) reported Tuesday that its Bombardier Transportation division has signed $255 million in contracts with the City of Phoenix, Arizona for the supply, operations and maintenance of an automated people mover system at Phoenix Sky Harbor International Airport.

Bombardier says the design-build contract, worth US$186 million, includes the design and supply of all of the system-wide electrical and mechanical equipment, and the construction and equipping of the operations and maintenance and storage facility.

The company also signed a separate operate-maintain contract, valued at US$69 million, under which it will provide operation and maintenance services for 10 years.

Completion of stage one of the 3.5-kilometre PHX SkyTrain is scheduled in 2012, says Bombardier.

"We truly appreciate the opportunity to develop a long-term relationship with Phoenix Sky Harbor International Airport through this exciting project. This is the largest new-start APM project in North America in a decade and we are confident it will serve as a role model for other cities and airports seeking modern transit solutions,” says Michael Fetsko, vice president APM, systems division, Bombardier Transportation.

Shares of Bombardier were down 2% to $3.65 Tuesday.

Meanwhile, on the Bombardier Bullboard, rallydriver made the following comments:  “down on the announcement of the huge phoenix contract. I've learned to expect this with bbd[sic]”… 

And, ynecjac added: “At the rate train orders are coming in if the plane side of the business restarts BBD will have to hire everyone on the planet to fullfill it's orders. You are absolutely right about the share price, it laways goes down on good news[sic].” 

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