Bus Builder NFI Group Inc. Announces Second Quarter Loss and Lower Revenues | national company

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WINNIPEG — Global supply chain constraints, inflation and restructuring costs put pressure on NFI Group Inc.’s second-quarter earnings, but the company said Wednesday the outlook is improving.

The Winnipeg-based bus maker reported a loss of US$56.7 million or 74 cents per share in the quarter, compared to a profit of US$2.6 million or 4 cents per share in the same quarter last year.

Along with the general economic headwinds, results were also down as the company received no wage subsidies this year, compared to the US$56 million it received last fiscal year, while a lawsuit settlement and pension liability also weighed.

Looking ahead though, the company sees improvements in its supply chain issues and in customer demand.

“The second quarter saw some improvement in some parts supply issues,” Brian Dewsnup, president of NFI Parts, said on a call with analysts.

“Where there have been issues, our sourcing and procurement team has done a masterful job of addressing those challenges.”

Investors seemed to agree, as the company’s shares rose more than 10% by early afternoon.

Semiconductors and other electronic components were a major challenge, however, forcing the company to cut its budget forecast for the year in an April update.

Looking further ahead, the company reaffirmed its fiscal 2025 target it announced in January 2021 of generating between $3.9 billion and $4.1 billion in revenue as it sees supply issues escalating. mitigate.

Second-quarter revenue totaled US$398 million, compared to US$583 million in the second quarter of 2021.

On the labor side, the company said a slowing economy in some regions and its increased wages have helped increase retention and recruitment.

NFI Group chief executive Paul Sourby, who returned to work this week after being on sick leave for months, said while the company continues to face challenges, it sees positive momentum in its backlog. orders with record bidding activity within its North American operations.

The company now has an order book equivalent to 9,674 vehicles, firm or optional, compared to 8,168 last year, including 733 units added by the Toronto Transit Commission, its first major victory in the market for more than a year. decade.

Shares of NFI, which have been under pressure in recent years, rose $1.40, or 10.53%, to $14.70 at midday Wednesday on the Toronto Stock Exchange.

This report from The Canadian Press was first published on August 3, 2022.

Companies in this story: (TSX:NFI)

Note to readers: This is a corrected story. A previous version had a contradictory title.

The Canadian Press. All rights reserved.

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