Swiss Railways says will not take new Bombardier trains until earlier problems fixed

ZURICH/MONTREAL (Reuters) - Swiss Federal Railways said it will not take new trains from Bombardier (BBDb.TO) until the Canadian company fixes the ones already in service, raising questions over the timing of future deliveries for the 1.9 billion Swiss franc ($1.9 billion) contract.

Bombardier investors are watching the 62-train Swiss order, one of a handful of rail contracts hit by delivery delays that generated a disappointing free cash flow result last year and subsequent sell off of the Canadian company’s stocks and bonds.

A Bombardier spokesman said problems with the Swiss trains would not cause “significant changes” to the company’s working capital outlook, and are expected to be resolved within weeks, although he would not provide a delivery schedule.

($1 = 0.9981 Swiss francs)

Reporting By John Miller in Zurich and Allison Lampert in Montreal; Editing by Denny Thomas and Chizu Nomiyama