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This article was published 23/3/2017 (1275 days ago), so information in it may no longer be current.

New Flyer Industries is now a $2-billion company.

To be exact, $2.3 billion.

The bus manufacturer headquartered in Winnipeg posted a revenue increase of 47.8 per cent to $2.3 billion and a 131.7 per cent bump in profit to $124.9 million for 2016 compared to the year before.

After its first full year of ownership of Motor Coach Industries, New Flyer beat most analysts' estimates for the quarter and the year.

The substantial increases in top- and bottom- line results have a lot to do with the addition of Motor Coach, and is also a result of a 5.6 per cent increase in the average selling price of both transit buses and motor coaches for the year, partly owing to sales of more higher-priced, lower-emission models.

Revenue from aftermarket operations in 2016 increased 27 per cent to $409.3 million in 2016, primarily a result of revenues generated by MCI. But taking into account the revenue from a special mid-life overhaul program for the Chicago Transit Authority, the core aftermarket revenue in 2016 remained essentially flat, compared to 2015.

The company almost doubled the free cash flow generated — $216.3 million — and paid out only 25 per cent of that in dividends.

In its outlook, management said it expects to make and deliver about 3,650 new transit buses and motor coaches during 2017, an increase of four per cent from 2016.

Management is forecasting a lower growth rate in the aftermarket segment for 2017 due to the fact that there has been a lot of fleet replacements in recent years.

The company has said it will review the dividend rate during the current quarter.

Analysts are looking for an increase in the New Flyer's current annualized dividend rate of $0.95 per share.

martin.cash@freepress.mb.ca