Sector Update: Industrials; WestJet Posts Strong Earnings, Bombardier Says Order Worth US$218 Mln Exercised
Industrial shares were mixed in afternoon trading, with the S&P/TSX Industrials index up 0.2%.
Bombardier (BBD-B.TO): +0.4%
WestJet (WJA.TO): +4.5%
Air Canada (AC-B.TO): +2.0%
Canadian Pacific Railway (CP.TO): -0.3%
Canadian National Railway (CNR.TO): -0.4%
In corporate news, Bombardier Transportation Tuesday said that SNCF has exercised an option for 22 additional Francilien commuter EMUs. The order, co-financed by STIF, the Ile-de-France transportation authority, and SNCF, is valued at approximately 162 million euro (US$218 million). It is part of the initial 2006 contract with SNCF for up to 372 trains for the Ile-de-France. With this order, a total of 194 Francilien trains have been ordered.
A statement said the 22 additional trains will be delivered by the end of 2016 and will be rolled out on SNCF Transilien lines H and K. At present, 136 Bombardier Francilien trains operate from the Paris stations Gare du Nord, Gare de L'Est and Gare Saint Lazare.
Meanwhile, WestJet \Tuesday reported Q2 results for 2014, with net earnings of $51.8 million or $0.40 per fully diluted share, as compared with the net earnings of $44.7 million or $0.34 per fully diluted share reported in the second quarter of 2013. According to the Capital IQ forecasts available through Bloomberg, the average forecast was for EPS of $0.27 or $0.28 a share.
The company also declared a cash dividend of $0.12 per common voting share and variable voting share for the third quarter of 2014, to be paid on September 30, 2014, to shareholders of record on September 17, 2014.