Bombardier announced today its decision to write-off its investment in Metronet following the release of the Public-Private Partnership (PPP) Arbiter’s draft directions on interim infrastructure service charge (ISC) for Metronet Rail BCV Limited issued on Monday, July 16th, 2007. Given the uncertainties regarding Metronet’s funding position following the Arbiter’s draft directions, Bombardier will record a write-off of approximately $164 million US (£82 million) in the second quarter of fiscal year 2008.
Bombardier’s turnkey supply contracts with Metronet, currently valued at approximately £3.3 billion ($6.7 billion US), are for new trains, signalling, refurbishment of trains and fleet maintenance activities. These supply contracts are progressing well and Bombardier will continue to work on them as per the requirements contained in its contracts. Bombardier remains fully committed to deliver a world class, safe and reliable Tube for London.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2007, were $14.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com .