BUSINESS

New Flyer delays order for 90 buses, company lowers 2012 production target

09/18/2012 08:12 EDT | Updated 11/18/2012 05:12 EST
WINNIPEG - New Flyer Industries (TSX:NFI) says a large U.S. customer has delayed placing its order for 90 Xcelsior buses while the purchase undergoes an independent review.

As a result, the Winnipeg-based bus manufacturer has lowered its projected 2012 output rate to the equivalent of 34 units per week — down from the 36 EUs per week included in a projection issued March 21.

New Flyer says its customer has financing in place for the purchase but is awaiting a review required by the state for all sole-sourced orders.

New Flyer said it expects to get the go-ahead from the unidentified customer in early October.

It also expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) will be flat compared with the first half of 2012.