Bombardier Provides C Series Program Updates
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Bombardier Inc. /
Bombardier Provides C Series Program Updates
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- C Series approaching 400 revenue-generating flights, meeting all performance
metrics
- 2016 C Series delivery schedule adjusted to reflect Pratt & Whitney engine
delays
- As a result, consolidated FCF usage guidance range adjusted to $1.15B to
$1.45B from $1.0B to $1.3B
- Consolidated revenue and EBIT guidance reaffirmed
MONTREAL, QUEBEC--(Marketwired - Sep 6, 2016) - Bombardier made a number of
announcements today regarding the first six weeks of operations and the 2016
delivery schedule for its C Series aircraft. The Company confirmed that the two
CS100 aircraft in service with SWISS have collectively flown nearly 400 revenue-
generating flights, and accumulated almost 600 flight hours.
"We are very pleased with the performance of the C Series during its entry-into-
service with our launch customer SWISS," said Fred Cromer, President, Bombardier
Commercial Aircraft. "The aircraft is meeting all expectations and clearly
demonstrating that it is the best performing and most efficient aircraft in the
100- to 150-seat class."
A third CS100 aircraft is scheduled to be delivered to SWISS next month, and the
CS300 - the larger C Series variant - is expected to enter service with
airBaltic in the fourth quarter. For the full year, the Company has adjusted its
C Series delivery forecast from 15 to 7 aircraft as a result of engine delivery
delays by its supplier Pratt & Whitney.
"The C Series engine is performing very well in service. We are working very
closely with Pratt & Whitney to quickly address this supplier ramp-up issue and
to ensure we have a strong supplier base to support our long-term growth
objectives," said Mr. Cromer. "We are very confident in our production ramp-up
plan, including our ability to meet our production goal of 90 to 120 aircraft
per year by 2020."
The C Series program continues to meet its program milestones and gain traction
in the market. Including significant orders from Air Canada and Delta earlier
this year, the Company has more than 300 firm orders and up to 800 orders
including options and commitments. With the certification of the CS300 and the
CS100's entry-into-service, the C Series program has transitioned from the
development phase into production ramp-up. Last week, Bombardier also announced
that it has received the second and last $500 million installment of the
Government of Quebec's investment in the C Series aircraft program, further
strengthening its liquidity position.
The C Series delivery adjustment announced today will result in lower revenues
at Bombardier Commercial Aircraft for the year without affecting EBIT
materially. On a consolidated basis, 2016 revenues and EBIT guidance are
reaffirmed. As a result of the delay, the Company now expects to be close to the
lower end of the $16.5 to $17.5 billion revenue guidance range, and free cash
flow usage is expected to be in the range of $1.15 to $1.45 billion. EBIT is
expected to be at the upper end of the $200 to $400 million range.
The company expects to end the year with a strong liquidity position and remains
on track to achieve both its 2018 cash flow neutral goal and its 2020 turn-
around plan objectives.
About Bombardier
Bombardier is the world's leading manufacturer of both planes and trains.
Looking far ahead while delivering today, Bombardier is evolving mobility
worldwide by answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.
Bombardier is headquartered in Montreal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
North America Index. In the fiscal year ended December 31, 2015, we posted
revenues of $18.2 billion. News and information are available at bombardier.com
or follow us on Twitter (at)Bombardier.
Bombardier, C Series, CS100, CS300 and The Evolution of Mobility are trademarks
of Bombardier Inc. or its subsidiaries.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to: statements with respect to the Corporation's objectives,
guidance, targets, goals, priorities, market and strategies, financial position,
beliefs, prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and trends of an
industry; expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and services,
orders, deliveries, testing, lead times, certifications and project execution in
general; competitive position; the expected impact of the legislative and
regulatory environment and legal proceedings on the Corporation's business and
operations; available liquidities and ongoing review of strategic and financial
alternatives; the effects of the C Series Investment and of the private
placement of a minority stake in Transportation to the Caisse de depot et
placement du Quebec (the CDPQ Investment and, with the C Series Investment, the
Investments) on the range of options available to us, including regarding our
participation in future industry consolidation; the capital and governance
structure of the Transportation segment following the CDPQ Investment, and of
the Commercial Aircraft segment following the C Series Investment; the impact
and expected benefits of the Investments on our operations, infrastructure,
opportunities, financial condition, access to capital and overall strategy and
the impact of the sale of equity on our balance sheet and liquidity position.
Forward-looking statements can generally be identified by the use of forward-
looking terminology such as "may", "will", "expect", "intend", "anticipate",
"plan", "foresee", "believe", "continue", "maintain" or "align", the negative of
these terms, variations of them or similar terminology. By their nature,
forward-looking statements require management to make assumptions and are
subject to important known and unknown risks and uncertainties, which may cause
actual results in future periods to differ materially from forecast results.
While management considers their assumptions to be reasonable and appropriate
based on information currently available, there is risk that they may not be
accurate.
Certain factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements include, but are not limited to,
risks associated with general economic conditions, risks associated with our
business environment (such as risks associated with the financial condition of
the airline industry, of business aircraft customers, and of the rail industry;
trade policy; increased competition; political instability and force majeure),
operational risks (such as risks related to developing new products and
services; development of new business; the certification and homologation of
products and services; fixed-price commitments and production and project
execution; pressures on cash flows based on project-cycle fluctuations and
seasonality; our ability to successfully implement our strategy and
transformation plan; doing business with partners; product performance warranty
and casualty claim losses; regulatory and legal proceedings; the environment;
dependence on certain customers and suppliers; human resources; reliance on
information systems; reliance on and protection of intellectual property rights;
and adequacy of insurance coverage), financing risks (such as risks related to
liquidity and access to capital markets; retirement benefit plan risk; exposure
to credit risk; existing debt and interest payment requirements; certain
restrictive debt covenants; financing support provided for the benefit of
certain customers; and reliance on government support) and market risks (such as
risks related to foreign currency fluctuations; changing interest rates;
decreases in residual values; increases in commodity prices; and inflation rate
fluctuations). For more details, see the Risks and uncertainties section in
Other in the Management's Discussion and Analysis (MD&A) of the Corporation's
financial report for the fiscal year ended December 31, 2015. For additional
information with respect to the assumptions underlying the forward-looking
statements made in this press release, refer to the Guidance and forward-looking
statements sections in the MD&A of the Corporation's financial report for the
fiscal year ended December 31, 2015.
Readers are cautioned that the foregoing list of factors that may affect future
growth, results and performance is not exhaustive and undue reliance should not
be placed on forward-looking statements. The forward-looking statements set
forth herein reflect management's expectations as at the date of this press
release and are subject to change after such date. Unless otherwise required by
applicable securities laws, the Corporation expressly disclaims any intention,
and assumes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The forward-
looking statements contained in this press release are expressly qualified by
this cautionary statement.
Contact Information
Contacts:
Isabelle Gauthier
Bombardier Commercial Aircraft
+1 450 476 7374
isabelle.gauthier(at)aero.bombardier.com
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+1 514 861 5727
Marianella de la Barrera
Bombardier Commercial Aircraft
+1 416 375 3030
marianella.delabarrera(at)aero.bombardier.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 06.09.2016 - 13:44 Uhr
Sprache: Deutsch
News-ID 492913
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contact information:
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