09.16
New Flyer Industries Inc. is one of the largest designers and manufacturers
of heavy-duty transit buses in North America, serving Canadian and U.S.
public transit authorities. The company has a backlog of over $4 billion for
firm orders and options to be delivered through to 2014.
During 2009 the company has been required to rectify a significant design
deficiency and faced the loss of a major order, which has impacted earnings
and unit prices. We believe these events should have a temporary impact
and forecast the company’s current distributions will remain intact.
We believe New Flyer will execute through 2009 and return to earnings
growth in 2010, resulting from a growing backlog and operational
improvements. We believe the combination of a sustainable cash yield and
capital appreciation warrants a position in the company’s units.
No Comment.
Add Your Comment