by Josephine Cordero Sapién
11 Aug 2020
Following the publication by Bombardier Inc. of its quarterly results, Alstom released a statement in which it said the quarterly results pointed to ‘unexpected and negative developments regarding Bombardier Transportation’.
This statement follows the news that the European Commission has given the go-ahead for Alstom to acquire Bombardier Transportation, following a series of commitments put forward by Alstom to the EC.
Alstom went on to say that it was still convinced of the ‘strong strategic rationale for the acquisition of Bombardier Transportation’. It also said it was ‘confident in its ability to restore in the medium term the profitability and commercial performance of the business’.
Alstom formally announced its intention to acquire Bombardier Transportation in February 2020. The financial information available to Alstom at the time was more favourable. Alstom described Bombardier Transportation as ‘facing challenges’.
Alstom will take these operating and financial developments into account as it proceeds with its talks with Bombardier Inc.
Following the European Commission’s conditional approval on 31 July, Bombardier Transportation and Alstom are working to obtain the necessary approvals and complete the Works Councils consultations.
In its financial report, Bombardier said that revenues for the quarter of 1.5 billion USD were a reflection of the reduced level of production activity at key sites in Europe and the Americas, as well as to revised estimates on several late-stage projects, largely in the UK and Germany.
Bombardier said its adjusted EBIT loss for the second quarter of 383 million USD was ‘significantly below expectations’. The loss, it said, reflected an additional charge of 435 million USD at Transportation, primarily due to incremental engineering, certification and retrofit costs associated with several late-stage projects. The reported EBIT loss for the quarter was 377 million USD. Bombardier has set up a dedicated team to look in depth into ‘challenging’ legacy projects, assessing project management processes and talent resources. The team is to get a full picture of the causes of excessive costs so that corrective action can be taken.
Despite these figures, Bombardier said its outlook for transportation remained ‘positive’. It has a 33.7 billion USD backlog and an order intake of 1.6 billion USD in the quarter, with contracts from several different countries. A big contract was an option triggered by SNCF, another was the Delhi-Meerut regional rapid transit system in India.
Alstom has signed an MoU with oil and gas company MOL to explore the use of hydrogen technology for rail transport in Hungary.
Transport for Wales (TfW) has taken delivery of the first of 35 Stadler Class 231 FLIRT trains ahead of testing.
As part of Alstom's acquisition of Bombardier Transportation, the companies agreed to divest a number of assets, including the V300 ZEFIRO.
Canadian Pacific and Kansas City Southern have now received the necessary regulatory approval from Mexican authorities regarding their merger.
Alstom has signed a contract with Metrolinx to refurbish 94 BiLevel series VII commuter rail cars for GO Transit.
Stanton Precast has been awarded the contract to deliver three 'green tunnels' for HS2 by the main works contractor EKFB.
A second track on Homburger Damm north of Frankfurt’s city centre has been put into operation by Deutsche Bahn.
The ORR has published its Rail Industry Finance report for 2020–21, showing that the sector is recovering from the coronavirus pandemic.
Network Rail is creating a special bridge for endangered wild hazel dormice in Lancashire in a bid to grow their populations.
Alstom and Liebherr – Aerospace and Transportation SAS have signed a collaboration agreement aimed at optimising hydrogen systems.
Hitachi has been chosen to design and build a fleet of N100 express trains for Tobu Railway Company's Tokyo and Nikko and Kinugawa service.
A new DB Cargo subsidiary, DB Cargo Transasia, has been established in Shanghai due to the popularity of the New Silk Road rail route.
Turkey’s AYGM and Istanbul Metropolitan Municipality have chosen Alstom to help upgrade the country's signalling infrastructure.
CZ LOKO is looking into the feasibility of building a hydrogen-powered locomotive. This has tentatively been named the HydrogenShunter 1000.
STM has entered the rail infrastructure services market with the establishment of a new railway infrastructure division.
Alstom has agreed to hand over its Reichshoffen production site and Coradia Polyvalent and TALENT3 platforms to CAF.
The trial operations phase of the Elizabeth line has now begun. This is the final stage of the project before the line opens in 2022.
Work on HS2’s Old Oak Common 850-metre-long station box has begun. The reinforced concrete structure will form the station's frame and base.
Deutsche Bahn is applying new requirements for passengers to carry proof of vaccination, recovery or a negative COVID-19 test.
Etihad Rail has completed the excavation of the nine tunnels that make up Package D of Stage Two of the UAE National Rail Network.
Regular train services resumed on the Dartmoor Line between Exeter and Okehampton this past weekend after a 50-year hiatus.
Hynamics has signed a new partnership agreement with Alstom to reduce the time needed to refuel hydrogen trains.
Swiss Federal Railways (SBB) has applied for a building permit to expand the railway line between Grellingen and Duggingen to double tracks.
An Implenia/Webuild (and swiss subsidiary CSC) joint venture has been awarded Lot H41 of the Brenner Base Tunnel project.
Silkway Transit has celebrated the arrival of its first ‘Black Granite’ electric locomotives at Nurly-Zhol railway station.
The Integrated Rail Plan published today, 18 November 2021, announces a huge slash in new railway lines being built in England.
The second of two Alstom light rail vehicles (LRV) has now arrived at the Finch West Maintenance and Storage Facility (MSF) in Toronto.
The first of three DMUs ordered from Stadler by the SBCTA has now left the manufacturer’s factory in Salt Lake City.
Alstom formally opened its new manufacturing facility in Coimbatore, India with a ceremony attended by France’s Ambassador to India.
Eiropas Dzelzceļa līnijas has launched the international tender for the construction of Rail Baltica’s main line in Latvia.
Baselland Transport and Stadler have signed a contract for the manufacture and delivery of 25 TINA (total integrated low-floor drive) trams.
NEB has ordered 31 two-car, battery-operated Mireo Plus B trains from Siemens Mobility for the new East Brandenburg rail network.
Following the collision between a SWR train and a GWR train on 31 October, the line is set to reopen to passenger traffic on 16 November.
Knorr-Bremse, manufacturer of train braking systems, HVAC systems and entrance systems has signed a maintenance framework agreement with CAF.
Jonn Elledge laments COP26's focus on electric vehicles to the exclusion of all other modes of transport, including the cleanest of them all.
Israel Railways has issued a notice to proceed for the supply of 36 TRAXX P160 AC3 electric locomotives manufactured by Alstom.
For Transport Day at COP26 (10 Nov 2021), UITP and UIC have released a joint statement urging a focus on rail and public transport.
Alstom and Eversholt Rail have signed a memorandum of understanding aimed at the development of 10 three-car hydrogen trains for the UK.
Hitachi Rail and Angel Trains have agreed to retrofit batteries on to TransPennine Express Nova 1 intercity trains.
The Office of Rail and Road has published its Signalling Market Study, launched in November 2020, to improve competition in the sector in GB.
Following severe flooding in Germany in July, Deutsche Bahn has reopened part of the Ahr Valley Railway to passenger traffic again today.
Alstom has won the largest metro rolling stock contract in Egypt: it will supply 55 Metropolis trainsets for the Cairo Metro Line 1.
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China's first fully automated, driverless elevated monorail has entered passenger service in Wuhan with 28 six-car Innovia trains.
Hitachi Rail and ScottishPower have signed a three-year deal for 100 percent renewable electricity (wind, solar, hydro-electric).
East Midlands Railway's Eastcroft depot near Nottingham is being upgraded to the tune of two million GBP. Works will be complete in June 2022.
Hitachi Rail and FERROVIENORD have signed a contract for the delivery of 50 high-capacity regional trains for Lombardy, Italy.
The RAIB said wheel slide was at play in the collision between a SWR and a GWR service at Salisbury Tunnel Junction on 31 October 2021.
The Stadler-built EuroDual locomotives, part of the European Loc Pool fleet, have been approved for operation in Austria.
Deutsche Bahn says it is getting into industrial 3D printing in order to make the maintenance of its trains faster and easier.
Germany is lagging behind the rest of Europe when it comes to rail network electrification says Allianz pro Schiene.
Network Rail and GWR are trialling a new information service designed to enable passengers to make more informed decisions.
Deutsche Bahn (DB) is training dogs to detect protected species in order to speed up construction projects.
Commuting into London lags behind rest of the UK says RDG, putting the recovery of London’s shops, theatres, restaurants and bars at risk.
Siemens Mobility is celebrating a milestone - the 1000th Vectron locomotive has left its site in Munich, Germany, destined for Denmark.
Rail Baltica has been granted an additional 19.7m euros in funding thanks to a Connecting Europe Facility (CEF) cross-border grant agreement.
Deutsche Bahn (DB) is launching four new everyworks co-working facilities in main stations across Germany.
VINCI Construction will build the operation and rolling stock maintenance centre for the Grand Paris Express’ future Line 18.
The Railway Industry Association is asking the UK Government to urgently publish an update of its Rail Network Enhancement Pipeline.
Škoda Transportation Group has signed a contract with Hyundai Rotem to deliver 17 sets of complete electrical equipment.
ILSA has awarded Hitachi Rail España the contract for the maintenance of its fleet of 20 new ETR trains for 30 years.
A study commissioned by the RDG has found that building the UK’s net zero railway could lead to the creation of approximately 6,000 jobs.
HS2 has published a shortlist of bidders for the Phase 2a Design and Delivery Partner contract. The winner will be announced next summer.
308 exhibitors have signed up to take part and showcase their latest innovations and expertise at the 12th edition of SIFER.
The Railway Industry Association (RIA) has set out six key actions for UK Government ahead of its Spending Review next week.
Sinara Transport Machines’ (STM) Trading House has signed an agreement with SilkWay Transit to deliver 22 2ES7 Black Granite locomotives.
A new report says that protecting light rail services is key to ensuring towns and cities recover from the impact of Covid-19.
Ile-de-France Mobilités and RATP have ordered 37 Alstom Citadis X05 trams for the Ile-de-France T1-Line in an order worth 130 million euros.
Brightline has begun testing its full operating train schedule between West Palm Beach and Miami in preparation for its return to service.
London’s Night Tube will resume service on the Central and Victoria lines from 27 December on Saturdays and Sundays.
Southeastern services begin under the government's Operator of Last Resort following last month's franchise breach announcement.
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Next month the first phase of industry engagement on the UK’s new passenger service contracts (PSCs) will begin.
KiwiRail has signed a long-term framework agreement with Stadler, with a first call off for 57 diesel mainline locomotives.
Network Rail has awarded Hitachi Rail and Linbrooke S a contract to design a digital signalling solution for the Gloucester area.
The world’s first self-operating train, the digital S-Bahn, has made its first run at the opening of ITS in Hamburg.
After a 50-year hiatus, the Dartmoor Line will resume regular passenger services between Okehampton and Exeter St Davids next month.
Alstom has been awarded the contract to design and supply the rolling stock for the Île-de-France network’s Line 18.
Trans Regio Deutsche Regionalbahn (Trans Regio) has signed a long-term lease with Alpha Trains for 23 EMU trains.
Stadler is to appeal against an Austrian Court’s decision to nullify a contract it had been awarded by the Austrian Federal Railways (ÖBB).
The East Kilbride and Barrhead electrification project will pass through East Renfrewshire and South Lanarkshire to the south of Glasgow.
The Connecting Europe Express has reached its final destination of Paris after 36 days travelling across Europe.
Alstom is investing €14m to modernise its Taubaté factory in Brazil following the signing of multiple national and international contracts.
New figures from the Office of Rail and Road show that UK rail travel started to rebound between April and June 2021.
RedCabin, together with its host partner Irish Rail, today announces the return of its Railway Interior Innovation Summit.
A footbridge made from super-strong fibre-reinforced plastic has been installed in Bicester to replace a footpath level crossing.
A new night train travelling between Vienna to Paris comes into service this December thanks to a collaboration between the ÖBB, SNCF and DB.
Swiss Federal Railways (SBB) has awarded Stadler a framework agreement for up to 510 new single-decker FLIRT multiple units.
A joint German-Dutch project to trial the control and remote monitoring of automated freight trains has begun this month.
Scotland’s First Minister has said that decarbonising transport, including rail services, can help reduce the threat of climate change.
Deutsche Post DHL and Deutsche Bahn are expanding their partnership with new connections that will allow more parcels to travel via rail.
Alstom has delivered its 100th and final Flexity light rail vehicle (LRV) to the Department of Transport in Victoria.
HS2 tunnel boring machine ‘Florence’ has passed the one mile mark, cutting through a mix of chalk and flint beneath the Chiltern hills.
An Alstom-led consortium has been awarded a contract to provide an integrated metro system for Taipei Circular Line Phase Two.
Network Rail has announced a £25m plan to protect the Newport-Gloucester line from further damage caused by extreme weather.
Siemens Mobility has received an order to build 23 four-car Mireo trainsets for rail operator agilis Eisenbahngesellschaft.
Vivarail’s next-gen battery train will be launched at COP26 this November, and will run daily services throughout the event.
Transdev Group and Strides International Business awarded shadow operator contract for four new Greater Paris driverless metro lines.
Knorr-Bremse is expanding its range of digital products and services for train manufacturers and rail operators around the world.
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