<span class="" id="parent-fieldname-description"> Announcing its 2012/13 half yearly results, Downer EDI Limited (Downer) continues to reverse the poor performance of recent times with its rail division showing strong revenue growth, largely attributable to the turnaround of the Waratah Train Project. </span> <p>Overall, Downer’s underlying earnings before interest and tax (EBIT) for the six months was $180.8m, 12.7% higher than the previous corresponding period, with underlying net profit after tax (NPAT) increasing by 24.1% to $105.5m.</p><p><strong>Downer Rail </strong></p><p>Downer Rail reported revenue of $729.6m for the six months, 27.0% higher than the previous corresponding period. </p><p>Revenue growth was driven by the Waratah Train Project, the project to build new tilt trains for QR’s Sunlander service and deliveries of locomotives to BHP Billiton Iron Ore and Fortescue Metals Group. Downer Rail currently has work-in-hand of $4.6bn.</p><p>EBIT was down from $42.9m to $34.2m due to weaker locomotive sales. <br />Downer says its Rail division is undergoing significant change as it transitions out of locomotive manufacturing to focus on whole-of-life asset management (including sales, repairs and maintenance). </p><p>In June 2012, Downer announced that it had signed a new five year agreement with Electro-Motive Diesel (EMD). Under the new agreement, EMD will manufacture all locomotives for the Australian market with Downer continuing to sell EMD locomotives and after-market products, including spare parts. </p><p>In December 2012, Downer was awarded a $41 million extension order from Perth Transport Authority for the manufacture of seven additional “B” Series passenger trains. </p><p>Downer continues to build its partnership with French company Keolis, one of Europe’s leading public transport operators. The joint venture currently operates and maintains the Melbourne tram system, Yarra Trams, and will also operate the Gold Coast Light Rail, currently under construction and scheduled to open in 2014.</p><p><strong>Overall</strong></p><p>Downer CEO Grant Fenn said the business has performed very well over the past six months.</p><p>“Each of our three divisions achieved substantial revenue growth, underlying EBIT has grown over 12% and our cash performance was strong once again,” Fenn said.</p><p>Total revenue rose by 20.2% to $4.7bn – Downer Rail’s by 27.0% to $0.7bn, Downer Infrastructure’s revenue rose by 23.9% to $2.6bn and Downer Mining’s by 17.8% to $1.3bn.</p><p>In Australia, Downer Infrastructure reported total revenue of $2.2bn for the six months, an increase of 25.6% compared with the previous corresponding period. </p><p>Downer Infrastructure in Australia has work-in-hand of $5.5bn which includes the awarding of a number of new projects in Australia during the period, including road and rail maintenance and civil construction work across most states. </p><p>In January, Downer announced it had been awarded new rail infrastructure work in NSW valued at more than $90m for the Gosford Passing Loops Project, one of four projects forming part of the broader Northern Sydney Freight Corridor Program with the works expected to be completed in mid-2015.</p><p><strong>Waratah Train Project</strong></p><p>The troubled Waratah Train Project (WTP) to replace a substantial part of Sydney’s CityRail suburban fleet appears to be well back on track.<br />Downer says that during the half year ended 31 December 2012, the project has made considerable progress against the primary goal of program certainty. The current Master Program Schedule and all significant milestones within the program have largely been achieved within the reporting period. </p><p>Fenn said that more than one third of the Waratah Train fleet (28 trains) was now available for passenger service.</p><p>“The Waratah trains are a massive step up in passenger comfort and safety and are performing very well in service,” Fenn said.</p><p>“Production output, both in China and Cardiff, is now at the rate required to complete the full production program to schedule. In China, both the bodyshell and fit-out shops are producing an average of 24 cars per month while in Cardiff we have ramped up successfully to the targeted 3 day cycle time.</p><p>“We remain on track to deliver the 78th (and final) Waratah train in mid-2014.”</p>
