Bombardier Announces Financial Results for the Third Quarter Ended October 31, 2010
(All amounts in this press release are in U.S. dollars unless otherwise indicated.)
- Consolidated revenues of $4 billion, compared to $4.6 billion last fiscal year
- EBITDA of $332 million, compared to $388 million last fiscal year
- EBIT of $228 million, or 5.7% of revenues, compared to $262 million, or 5.7%, last fiscal year
- Net income of $143 million, compared to $168 million last fiscal year
- Earnings per share of $0.08, compared to $0.09 last fiscal year
- Free cash flow usage of $132 million, compared to a free cash flow of $72 million last fiscal year
- Good cash position at $2.7 billion
- Strong backlog of $48.9 billion
- Launch of the Global 7000 and Global 8000 business jets
Bombardier today reported its financial results for the third quarter ended October 31, 2010. Revenues amounted to $4 billion compared to $4.6 billion last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled $228 million, compared to $262 million last fiscal year, while the EBIT margin reached 5.7%, the same level as last year.
Net income amounted to $143 million, compared to $168 million for the same period last fiscal year. Diluted earnings per share (EPS) was $0.08, compared to $0.09 last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) usage totalled $132 million for the third quarter, compared to a free cash flow of $72 million for the same period last fiscal year. The cash position amounted to $2.7 billion as at October 31, 2010, compared to $3.4 billion as at January 31, 2010. The overall backlog stood at a strong $48.9 billion, compared to $43.8 billion as at January 31, 2010.
“Once again, this quarter, Bombardier Transportation had a good level of new orders with a book-to-bill ratio of 1.7,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.” This translates into a record backlog of $32.7 billion for the group, a 21% increase since the beginning of the year. Breakthrough orders were received, including a first order in Europe for our successful ZEFIRO family of high speed and very high speed trains and, in Brazil, for a 24 kilometre monorail system.”
“The environment in Aerospace remained difficult with leading indicators sending mixed signals as to the timing of a full recovery. Nevertheless, we continued to work on our development programs and announced, in September, the launch of the Global 7000 and Global 8000 jets.”
“As the global economy firms up, our product strategy will position us well to expand our market share as well as to increase our penetration of emerging markets,” concluded Mr Beaudoin.
Bombardier Aerospace
Bombardier Aerospace’s revenues amounted to $1.8 billion, compared to $2.1 billion last fiscal year. EBIT totalled $87 million, or 4.7% of revenues, compared to $103 million, or 5%, for the same period last fiscal year. Free cash flow usage was $234 million for the third quarter ended October 31, 2010, compared to a free cash flow of $61 million for the same period last fiscal year. The group received 23 net orders during the third quarter ended October 31, 2010, compared to seven for the same period last fiscal year, while delivering 53 aircraft, compared to 61 last fiscal year. The backlog stood at $16.2 billion as at October 31, 2010, compared to $16.7 billion as at January 31, 2010.
While both business and commercial aircraft markets are still experiencing challenging conditions, the fundamentals are strong in the long term for both segments. As such, Bombardier Aerospace continued to invest in its product development and launched two new business jets, the Global 7000 and Global 8000 aircraft.
Development of the CSeries aircraft program is on schedule and, subsequent to quarter end, the CRJ1000 NextGen aircraft was certified by Transport Canada and the European Aviation Safety Agency, and first deliveries will take place in the fourth quarter of this fiscal year.
On the Learjet 85 business aircraft front, the program and development of the manufacturing footprint are progressing well. The Wichita, Kansas, final assembly plant is undergoing an expansion and, in October 2010, we inaugurated a state-of-the-art component manufacturing facility in Queretaro, Mexico, for the Learjet 85 aircraft major composite structures.
Source: BOMBARDIER
