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Following lengthy delays and two profit downgrades engineering company Downer EDI Ltd (ASX:DOW) has finally delivered the first passenger train set under the Waratah contract to New South Wales' transport body, RailCorp.
Under the contract Downer is due to build 78 train sets for the New South Wales government over three years.
But the process hasn’t been smooth sailing for Downer, who has now twice made provisions totalling $440 million on the contract.
In February the company posted a first half net loss, and launched a $279 million capital raising to inject funds into the Waratah project.
CEO Grant Fenn says the presentation of the first Waratah train set is an important milestone in the manufacturing program.
Downer advises that the next five Waratah train sets are scheduled to be delivered to RailCorp before October this year.
For the first half of the 2011 financial year Downer booked a net loss of $103.8 million.
