Bombardier Announces Financial Results for the First Quarter Ended April 30, 2011
(Thomson Reuters ONE) -
MONTREAL, QUEBEC--(Marketwire - June 1, 2011) - Bombardier Inc. (TSX:
BBD.A)(TSX: BBD.B)
(All amounts in this press release are in U.S. dollars unless otherwise
indicated.)
-- Consolidated revenues of $4.7 billion, compared to $4.3 billion last fiscal
year
-- EBIT of $312 million, or 6.7% of revenues, compared to $279 million, or
6.5%, last fiscal year
-- Net income of $220 million, or diluted EPS of $0.12, compared to $195
million, or diluted EPS of $0.11, last fiscal year
-- Free cash flow usage of $409 million, compared to a usage of $217 million
last fiscal year
-- Cash position of $3.9 billion as at April 30, 2011, compared to $4.2 billion
as at January 31, 2011
-- Backlog of $55.1 billion as at April 30, 2011, compared to $52.7 billion as
at January 31, 2011
-- In May 2011, renewal of BT's letter of credit facility for EUR3.4 billion
(approximately $4.9 billion), resulting in the release of an amount of EUR404
million ($577 million) of invested collateral
Bombardier today released its financial results for the first quarter ended
April 30, 2011. This is the first interim reporting under IFRS(i). Revenues
reached $4.7 billion, a 9% increase, compared to $4.3 billion last fiscal year.
Earnings before financing income, financing expense and income taxes (EBIT)
totalled $312 million, compared to $279 million last fiscal year, representing
an EBIT margin of 6.7% for the first quarter ended April 30, 2011, compared to
6.5% for the corresponding period last fiscal year. Net income reached $220
million, compared to $195 million for the same period last fiscal year. Diluted
earnings per share (EPS) was $0.12 for the three-month period ended April
30, 2011, compared to diluted EPS of $0.11 for the same period last fiscal year.
The overall backlog reached $55.1 billion, compared to $52.7 billion as at
January 31, 2011.
Free cash flow (cash flows from operating activities less net additions to
property, plant and equipment (PP&E) and intangible assets) usage totalled $409
million, compared to a usage of $217 million for the same period last fiscal
year. The cash position stood at $3.9 billion as at April 30, 2011, compared to
$4.2 billion as at January 31, 2011.
"Overall, both groups had a good performance during the first quarter with
increased revenues and EBIT, translating into higher net income and EPS," said
Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
"Bombardier Aerospace has started to benefit from a stronger business aircraft
market, especially at the high end. And once again, our state-of-the-art
business aircraft product offering has paid off, as illustrated by the increased
level of new orders this quarter," said Pierre Beaudoin. "Our commercial
aircraft segment, although slower to recover, is seeing an improved level of
interest from customers."
"Bombardier Transportation continues to do well, posting good results again this
quarter. Last year's high order intake is starting to translate into increased
revenues year-over-year and the group is making steady progress towards its EBIT
margin target of 8%."
"We have the best product portfolio of our industries, our balance sheet is
strong and our impressive backlog of $55.1 billion gives us great visibility on
revenues for the next few years," concluded Mr. Beaudoin.
On May 27, 2011, Bombardier renewed Bombardier Transportation's letter of credit
facility for EUR3.4 billion (approximately $4.9 billion), at a better rate and
without collateral, enabling the Corporation to release an amount of EUR404
million ($577 million) of the invested collateral related to the previous
facility.
Bombardier Aerospace
At Bombardier Aerospace, revenues totalled $2.2 billion, compared to $2 billion
for the first quarter last fiscal year, while EBIT reached $141 million, or
6.4% of revenues, compared to $133 million, or 6.8% last fiscal year. Free cash
flow usage of $168 million compares to a usage of $205 million for the same
period last year. Bombardier Aerospace delivered 61 aircraft for the first
quarter ended April 30, 2011, compared to 56 last fiscal year and received 86
net orders, compared to 61 for the same period last fiscal year. Its backlog
increased by 10% reaching $21.1 billion, compared to $19.2 billion as at January
31, 2011.
Business jet indicators, although mixed, are generally showing a positive trend.
The May 2011 General Aviation Manufacturers Association (GAMA) shipment report
clearly showed Bombardier Aerospace as the market leader in the business
aircraft market categories in which it competes, in both revenues (40%) and
units delivered (39%), during the first three months of calendar year 2011. The
group continued to experience an increasing level of business aircraft orders
with 77 net orders, including an order from NetJets Inc. for 50 aircraft of the
Global family, for a value of $2.8 billion based on list prices, compared to 6
for the same period last fiscal year.
On the commercial aircraft front, there has been an increase in deliveries from
16 aircraft for the first quarter ended April 30, 2010 to 23 for the first
quarter of the current fiscal year. Although there has been a recovery for
mainlines, the recovery is slower for regional airlines. The price of oil is
expected to drive airlines to accelerate the retirement of older, less efficient
aircraft, increasing the demand for new-technology, more fuel-efficient
aircraft, which positions us well with our portfolio of new aircraft.
Bombardier Transportation
For the first quarter ended April 30, 2011, Bombardier Transportation's revenues
totalled $2.5 billion, compared to $2.3 billion last fiscal year. EBIT reached
$171 million, or 6.9% of revenues, for the first quarter ended April 30, 2011,
compared to $146 million, or 6.3%, for the same period last fiscal year. Free
cash flow usage of $168 million compares to a usage of $34 million last fiscal
year. Bombardier Transportation reported new orders worth $1.2 billion for the
first quarter, representing a book-to-bill ratio of 0.5, compared to $2.9
billion, a book-to-bill ratio of 1.2, for the same period last fiscal year. The
order backlog stood at $34 billion as at April 30, 2011, compared to $33.5
billion as at January 31, 2011.
Among the most important orders received during the first quarter ended April
30, 2011, Bombardier Transportation concluded an agreement with the Government
of South Australia for the supply and maintenance of 22 Bombardier 25kV 3 car
electric trains valued at approximately $278 million.
Subsequent to the end of the first quarter, the group signed a framework
agreement with Siemens AG to be a partner to develop and supply important
components for up to 300 ICx high speed trains for Deutsche Bahn AG (DB AG) of
Germany. A first firm order for a total of 130 trains valued at approximately
$1.8 billion was obtained under this agreement. DB AG is planning to place an
additional order with Siemens AG for a further 90 trains. The combined order
volume of 220 trains would be worth approximately $3 billion to Bombardier.
Also after the end of the quarter, a nine-year framework agreement was signed
with DB Regio AG for 200 TRAXX diesel locomotives with multi-engine propulsion,
estimated at $867 million. A formal order for the first 20 locomotives, valued
at $90 million, was signed at the same time.
(i)Comparative figures have been restated to comply with IFRS.
FINANCIAL HIGHLIGHTS
(In millions of U.S. dollars, except per share amounts, which are shown in
dollars)
Three-month
periods
ended April
30
2011 2010
BA BT Total BA BT Total
Results of
operations
Revenues $ 2,188 $ 2,473 $ 4,661 $ 1,957 $ 2,307 $ 4,264
Cost of sales 1,857 2,068 3,925 1,641 1,932 3,573
Gross margin 331 405 736 316 375 691
SG&A 160 203 363 153 196 349
R&D 33 31 64 44 33 77
Other expense (3) - (3) (14) - (14)
EBIT $ 141 $ 171 $ 312 $ 133 $ 146 $ 279
Financing
expense 177 164
Financing
income (141) (121)
EBT 276 236
Income taxes 56 41
Net income $ 220 $ 195
Attributable
to :
Shareholders
of
Bombardier
Inc. $ 220 $ 194
Non-
controlling
interests $ - $ 1
EPS (in
dollars)
Basic and
diluted $ 0.12 $ 0.11
Segmented free
cash flow $ (168) $ (168) $ (336) $ (205) $ (34) $ (239)
Income taxes
and net
financing
expense (73) 22
Free cash flow
(usage) $ (409) $ (217)
BA : Bombardier Aerospace; BT : Bombardier Transportation
FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2011
ANALYSIS OF RESULTS
Consolidated results
Consolidated revenues totalled $4.7 billion for the first quarter ended April
30, 2011, compared to $4.3 billion for the same period last year.
For the first quarter ended April 30, 2011, EBIT reached $312 million, or 6.7%
of revenues, compared to $279 million, or 6.5%, for the same period the previous
year.
Net financing expense amounted to $36 million for the first quarter of the
current fiscal year, compared to $43 million for the corresponding period last
fiscal year. The $7-million decrease is mainly due to lower net financing
expense related to pension plans and higher interest income on cash and cash
equivalents, partially offset by a gain on repurchase of long-term debt in March
2010.
The effective income tax rate was 20.3% for the three-month period ended April
30, 2011, compared to the statutory income tax rate of 28.4%. The lower
effective tax rate is mainly due to the positive impact of the recognition of
income tax benefits related to operating losses and temporary differences,
partially offset by permanent differences.
Net income amounted to $220 million, or diluted EPS of $0.12, for the first
quarter ended April 30, 2011, compared to $195 million, or diluted EPS of $0.11,
for the same period the previous year.
For the three-month period ended April 30, 2011, free cash flow usage totalled
$409 million, compared to a usage of $217 million for the corresponding period
the previous year.
As at April 30, 2011, Bombardier's order backlog reached $55.1 billion, compared
to $52.7 billion as at January 31, 2011.
Bombardier Aerospace
-- Revenues of $2.2 billion
-- EBIT of $141 million, or 6.4% of revenues
-- Free cash flow usage of $168 million
-- Order backlog of $21.1 billion
-- NetJets order for up to 120 aircraft of the Global family
Bombardier Aerospace's revenues amounted to $2.2 billion for the three-month
period ended April 30, 2011, compared to $2 billion for the same period the
previous year. This increase is mainly due to higher deliveries of commercial
aircraft and a favourable mix in business aircraft.
For the first quarter ended April 30, 2011, EBIT reached $141 million, or 6.4%
of revenues, compared to $133 million, or 6.8%, for the same period the previous
year. The 0.4 percentage-point decrease is mainly due to lower liquidated damage
payments from customers upon cancellation of orders and the mix between business
and commercial aircraft deliveries; partially offset by lower research and
development (R&D) expenses mainly due to lower amortization of program tooling,
higher absorption of selling, general and administrative (SG&A) expenses, and a
favourable mix of business aircraft deliveries.
Free cash flow usage totalled $168 million for the first quarter ended April
30, 2011, compared to a usage of $205 million for the same period last fiscal
year. This $37-million improvement was mainly due to a positive period-over-
period variation in net change in non-cash balances related to operations,
partially offset by higher net additions to PP&E and intangible assets, due to
our significant investments in new products.
For the quarter ended April 30, 2011, aircraft deliveries totalled 61 units,
compared to 56 for the same period the previous year. The 61 deliveries
consisted of 37 business aircraft, 23 commercial aircraft and 1 amphibious
aircraft (39 business, 16 commercial and 1 amphibious aircraft for the
corresponding period last fiscal year).
Bombardier Aerospace received 86 net orders during the quarter ended April
30, 2011, compared to 61 during the corresponding period the previous year. The
86 net orders consisted of 77 net orders for business aircraft, 5 orders for
commercial aircraft and 4 orders for amphibious aircraft (6 net orders for
business aircraft and 55 net orders for commercial aircraft for the same period
last fiscal year)
The most significant order received during the first quarter ended April
30, 2011 was from NetJets Inc. for 30 Global 5000 and Global 6000 aircraft and
20 Global 7000 and Global 8000 aircraft, with options for an additional 70
aircraft of the Global family. Based on list prices, the value of the firm order
is $2.8 billion, which could increase to $6.7 billion, if all options are
exercised. This is the largest business aircraft order in Bombardier's history.
Bombardier Aerospace's firm order backlog reached $21.1 billion as at April
30, 2011, compared to $19.2 billion as at January 31, 2011. The 10% increase is
mainly due an increase in large business aircraft orders, partially offset by a
lower order backlog for regional aircraft.
Bombardier Transportation
-- Revenues of $2.5 billion
-- EBIT of $171 million, or 6.9% of revenues
-- Free cash flow usage of $168 million
-- New order intake totalling $1.2 billion (book-to-bill ratio of 0.5)
-- Order backlog of $34 billion
Bombardier Transportation's revenues amounted to $2.5 billion for the three-
month period ended April 30, 2011, compared to $2.3 billion for the
corresponding period last year. The increase is mainly due to higher activities
in rolling stock, especially in metro cars in Europe due to ramp-up of
production on existing contracts; in intercity, high speed and very high speed
trains in Asia and Europe due to ramp-up of production on new contracts; and in
propulsion and controls, mainly in China. This was partially offset by lower
activities in rolling stock due to phasing out of existing contracts ahead of
ramping-up of production on new contracts in locomotives and in light rail
vehicles in Europe, and in mass transit in North America. The increase also
reflects a positive currency impact.
For the first quarter ended April 30, 2011, EBIT totalled $171 million, or 6.9%
of revenues, compared to $146 million, or 6.3%, for the same quarter the
previous year. The 0.6 percentage-point increase is mainly due to better overall
contract execution and higher absorption of SG&A and R&D expenses, partially
offset by net losses related to foreign exchange fluctuations and certain
financial instruments carried at fair value.
Free cash flow usage for the quarter ended April 30, 2011 totalled $168 million,
compared to a usage of $34 million for the same period last fiscal year. The
$134-million decrease is mainly due to a negative period-over-period variation
in net change in non-cash balances related to operations, partially offset by a
higher earnings before financing income, financing expense, income taxes and
depreciation and amortization.
The order intake for the first quarter ended April 30, 2011 was $1.2 billion,
reflecting a book-to-bill ratio of 0.5, compared to $2.9 billion, a book-to-bill
ratio of 1.2, for the same period last fiscal year. This decrease is mainly due
to lower order intake in rolling stock in Europe, partially offset by higher
order intake in rolling stock in Asia-Pacific and a positive currency impact.
Bombardier Transportation's backlog stood at $34 billion as at April 30, 2011,
compared to $33.5 billion as at January 31, 2011. The $0.5-billion increase is
due to the strengthening of most foreign currencies versus the U.S. dollar as at
April 30, 2011 compared to January 31, 2011, mainly the euro and pound sterling,
partially offset by higher revenues recorded than order intake.
Bombardier Transportation received the following major orders during the first
quarter ended April 2011: an order for the supply and maintenance of 66 cars of
25kV electric trains from the Government of South Australia, for a value of
approximately $278 million, and an order from Metrolinx for the supply of 50
BiLevel commuter rail cars to be delivered to GO Transit in Toronto, valued at
approximately $128 million.
DIVIDENDS ON COMMON SHARES
Class A and Class B Shares
A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple Voting)
and of $0.025 Cdn per share on Class B Shares (Subordinate Voting) is payable on
July 31, 2011 to the shareholders of record at the close of business on July
15, 2011.
Holders of Class B Shares (Subordinate Voting) of record at the close of
business on July 15, 2011 also have a right to a priority dividend of
$0.000390625 Cdn.
DIVIDENDS ON PREFERRED SHARES
Series 2 Preferred Shares
A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares has
been paid on April 15 and on May 15, 2011.
Series 3 Preferred Shares
A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is
payable on July 31, 2011 to the shareholders of record at the close of business
on July 15, 2011.
Series 4 Preferred Share
A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is
payable on July 31, 2011 to the shareholders of record at the close of business
on July 15, 2011.
About Bombardier
A world-leading manufacturer of innovative transportation solutions, from
commercial aircraft and business jets to rail transportation equipment, systems
and services, Bombardier Inc. is a global corporation headquartered in Canada.
Its revenues for the fiscal year ended January 31, 2011, were $17.7 billion, and
its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed
as an index component to the Dow Jones Sustainability World and North America
indexes. News and information are available at www.bombardier.com or follow us
on Twitter (at)BombardierInc.
BiLevel, Global, Global 5000, Global 6000, Global 7000, Global 8000 and TRAXX
are trademarks of Bombardier Inc. or its subsidiaries.
The Management's Discussion and Analysis and the Interim consolidated financial
statements are available at www.bombardier.com.
FORWARD LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to, statements with respect to our objectives, targets, goals,
priorities and strategies, financial position, beliefs, prospects, plans,
expectations, anticipations, estimates and intentions; general economic and
business conditions outlook, prospects and trends of the 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; our
competitive position; and the expected impact of the legislative and regulatory
environment and legal proceedings on our business and operations. Forward-
looking statements generally can be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intend", "anticipate", "plan",
"foresee", "believe" or "continue", the negative of these terms, variations of
them or similar terminology. By their nature, forward-looking statements require
us 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 forecasted results. While we consider our assumptions to be
reasonable and appropriate based on information currently available, there is a
risk that they may not be accurate. For additional information with respect to
the assumptions underlying the forward-looking statements made in this press
release, refer to the respective Forward-looking statements sections in
Bombardier Aerospace and Bombardier Transportation sections in the Management's
Discussion and Analysis ("MD&A") in the Corporation's annual report for fiscal
year 2011.
Certain factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements include risks associated with
general economic conditions, risks associated with our business environment
(such as risks associated with the financial condition of the airline industry
and major rail operators), operational risks (such as risks related to
developing new products and services; doing business with partners; product
performance warranty and casualty claim losses; regulatory and legal
proceedings; to the environment; dependence on certain customers and suppliers;
human resources; fixed-price commitments and production and project execution),
financing risks (such as risks related to liquidity and access to capital
markets, 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 value and increases in commodity prices). For more
details, see the Risks and uncertainties section in Other. 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 our expectations as at the date of the Corporation's MD&A and are
subject to change after such date. Unless otherwise required by applicable
securities laws, we expressly disclaim any intention, and assume 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.
CAUTION REGARDING NON-GAAP EARNINGS MEASURES
This press release is based on reported earnings in accordance with
International Financial Reporting Standards (IFRS). It is also based on EBITDA
and Free Cash Flow. These non-GAAP measures are directly derived from the
Consolidated Financial Statements, but do not have a standardized meaning
prescribed by IFRS; therefore, others using these terms may calculate them
differently. Management believes that a significant number of the users of its
MD&A analyze the Corporation's results based on these performance measures and
that this presentation is consistent with industry practice.
Contacts:
Isabelle Rondeau
Director, Communications
+514-861-9481
Shirley Chenier
Senior Director, Investor Relations
+514-861-9481
www.bombardier.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Bombardier Transportation via Thomson Reuters ONE
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Datum: 01.06.2011 - 13:46 Uhr
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