Bombardier Reports First Quarter 2017 Results
- Reports EBIT margin(1) expansion led by strong performance at Transportation and Business Aircraft - Continued improvement in year-over-year cash performance(1) - Full year guidance reaffirmed - Pierre Beaudoin to assume role of Non-Executive Chairman, concluding smooth transition of executive responsibilities
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 05/11/17 -- Bombardier (TSX: BBD.A)(TSX: BBD.B)(OTCQX: BDRBF) today reported its first quarter 2017 results, demonstrating continued momentum executing its turnaround plan. Highlighting the company's progress was strong organic growth at Transportation, EBIT margin(1) expansion at both Transportation and Business Aircraft, and significantly improved year-over-year cash performance(1).
Bombardier reported revenues of $3.6 billion and EBIT before special items was $128 million. EBIT margins before special items grew to a robust 8.0% at Transportation, 7.6% at Business Aircraft and 7.5% at Aerostructures, while Commercial Aircraft recorded an EBIT loss in line with the prior year. Free cash flow usage improved by $157 million to $593 million for the quarter.
"We continue to gain momentum as we execute our transformation plan and begin to unleash the full value of the Bombardier portfolio," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "Our continued margin expansion and improving cash performance demonstrate both the early benefits of our actions and the long-term potential of our company."
Bombardier also announced that Pierre Beaudoin intends to step down as Executive Chairman of the Board effective June 30, 2017. Mr. Beaudoin will continue to serve as Non-Executive Chairman.
"This change reflects the very successful transition of Bombardier's executive leadership to Alain over the past two years," said Beaudoin. "As Chairman I look forward to working with the Board of Directors to provide continuing support to Alain and the leadership team. The Company is firmly on the right path, with a very strong leadership team now in place to execute its turnaround plan and return Bombardier to long-term, sustainable growth."
The change to Mr. Beaudoin's position is subject to the formal approval of Bombardier's Board of Directors, which is expected following the Company's Annual General Meeting later today.
SELECTED RESULTS
All amounts in this press release are in U.S. dollars unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.
Bombardier reported consolidated revenues of $3.6 billion in the quarter, which is in line with expectations and highlights renewed growth momentum in Transportation. EBIT before special items was $128 million, up from $104 million in the fourth quarter and in line with last year, as margins continue to demonstrate the benefits of the transformation plan. EBIT margin before special items grew to a robust 8.0% in Transportation and achieved 7.6% in Business Aircraft and 7.5% in Aerostructures and Engineering Services. Free cash flow usage improved to $593 million while Bombardier continued to invest in the Global 7000 and Global 8000 aircraft program testing and certification phase as well as inventories supporting the production ramp-up of the C Series aircraft program and certain key Transportation projects. These results lead Bombardier to reiterate its full year guidance of revenue growth in the low-single digits, excluding currency impacts, EBIT before special items between $530 million and $630 million and free cash flow usage between $1.0 billion and $750 million.
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Commercial Aircraft
Aerostructures and Engineering Services
Transportation
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, 2016, we posted revenues of $16.3 billion. News and information are available at or follow us on Twitter .
Bombardier, CRJ900, CRJ Series, CS100, CS300, C Series, Global, Global 7000 and Global 8000 are trademarks of Bombardier Inc. or its subsidiaries.
The Management's Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments' Analysis of results sections in the Corporation's MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(1) Refer to the Consolidated results of operations section in the Corporation's MD&A for details regarding special items.
(1) Refer to the Consolidated results of operations section in the Corporation's MD&A for details regarding special items.
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 impact and expected benefits of the investment by the Government of Quebec in the C Series Aircraft Limited Partnership and of the private placement of a minority stake in Transportation by the CDPQ on our operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; and the impact of such investments 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","shall", "can", "expect", "estimate", "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 our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these 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, business aircraft customers, and 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 and fixed-term commitments and production and project execution; pressures on cash flows based on project-cycle fluctuations and seasonality; our ability to successfully implement and execute 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; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), 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, 2016. 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, 2016.
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.
The Global 7000 and Global 8000 aircraft program is currently in development, and as such is subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind.
Contacts:
Bombardier Inc.
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
514 861 9481
Bombardier Inc.
Patrick Ghoche
Vice President, Investor Relations
514 861 5727
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Datum: 11.05.2017 - 10:00 Uhr
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News-ID 541778
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Aircraft
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