Stagecoach expects to beat forecasts; helped by rail businesses

Source: Supply Chain Digital

Date :28/04/2008 10:20:45

Stagecoach Group said Monday it expects to beat analysts’ forecasts after strong performance in its rail operations.

The bus and train group said that earnings per share before one-off items for the year ending April 30 are now expected to be about 20p.

This was led by its UK rail division, including a strong start to East Midlands Trains, which it began operating on November 11 and the group's joint venture, Virgin Rail Group, Stagecoach said.

“We are encouraged by the current trading performance of the group and, whilst we are mindful of macroeconomic developments and of continuing cost pressures such as increased fuel prices, the outlook remains positive,” said the group.

Greener bus technology

In a separate statement, Stagecoach confirmed the first part of a £71 million investment in a fleet of 584 greener buses for the UK during 2008-09, the biggest ever order placed by the company.

Stagecoach has initially ordered nearly 500 vehicles with a total value of more than £60 million from manufacturers Alexander Dennis (ADL), Optare, MAN, Plaxton, Scania and Volvo.

The remainder of the £71 million orders will be confirmed later this year, the group said.

April 28, 2008