July 26, 2012
ORION ASSIGNS FTA-FUNDED NEW YORK CITY TRANSIT CONTRACT FOR 74 CNG BUSES TO NEW FLYER
Winnipeg, Manitoba, Canada – July 26, 2012: (TSX:NFI, TSX:NFI.UN, TSX:NFI.DB.U) New Flyer Industries Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today that Daimler Buses North America, Inc (“DBNA”), has assigned to New Flyer its contract with New York City Transit Authority and the MTA Bus Company (together, “NYCT”) to build 74 heavy-duty 40-foot CNG buses. The contract includes an additional 30 option buses that will not be ordered at this time.
This assignment is a result of DBNA’s decision announced on April 25, 2012 to exit production of heavy duty transit buses for the US and Canadian markets. The base order for the assigned US Federal Transit Administration funded contract (74 buses) will commence production in August 2012, all of which are expected to be delivered to NYCT by the end of the year. Final assembly of these buses will take place in New Flyer’s Crookston, Minnesota facility.
The buses will be virtually identical to New Flyer’s existing contract with NYCT for 385 buses currently in production. This contract assignment further extends the long standing partnership between New Flyer and NYCT by providing a proven and reliable product, supported by New Flyer warranty, service and lifetime customer care.
“Delivering to NYCT requirements was our top priority,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. “We are pleased that we could react so quickly due to DBNA’s transition plan with a solution that met NYCT needs by continuing the build of our current bus production run.”
This assigned contact was part of the group of orders for 483 new buses (613 equivalent units or “EUs”) and options for 40 buses (60 EUs) noted in the New Flyer press release of July 16, 2012 as pending from a number of customers where approval had been granted by the customer's board, council, or commission, as appropriate, but purchase documentation had not yet been received by the Company and therefore not yet included in the backlog.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company’s three manufacturing facilities – in Winnipeg, MB; St. Cloud, MN; and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and four parts distribution centers in Winnipeg, MB; Erlanger, KY; Fresno, CA and Brampton, ON.
With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient diesel-electric hybrid vehicles. New Flyer has delivered over 31,000 heavy-duty buses in Canada and the United States. All products are supported with an industry-leading, comprehensive parts and service network. Further information is available on New Flyer’s web site at www.newflyer.com.
The common shares, income deposit securities and convertible unsecured subordinated debentures of New Flyer are traded on the Toronto Stock Exchange under the symbols NFI, NFI.UN and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and New Flyer Industries Canada ULC (“NFI ULC”) that involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and economic conditions of and funding availability for customers to purchase buses and to exercise options for buses and to purchase parts or services and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, New Flyer and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
For further information, please contact:
New Flyer Industries Inc.
Glenn Asham, Chief Financial Officer