Bombardier announces financial results

Bombardier has reported its financial results for the second quarter that ended on July 31, 2011.

Revenues increased by 17% to reach $4.7 billion, compared to $4 billion for the corresponding period last fiscal year.

Earnings before financing income, financing expense and income taxes (EBIT) totalled $296 million, versus $249 million last fiscal year. The EBIT margin stands at 6.2%, the same as last fiscal year.

Net income for the second quarter amounted to $211 million, compared to $138 million for the same period last fiscal year. Diluted earnings per share (EPS) was $0.12, compared to $0.07 last fiscal year.

Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) usage totalled $1.1 billion for the second quarter ended July 31, 2011, compared to a usage of $562 million last fiscal year.

The cash position amounted to $3.2 billion as at July 31, 2011, compared to $4.2 billion as at January 31, 2011. The overall backlog reached $56.9 billion as at July 31, 2011, compared to $52.7 billion as at January 31, 2011.

“We delivered good results for the second quarter with increased revenues, profitability and EPS,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.

“Bombardier Transportation’s level of activity remained strong and its book-to-bill ratio of 1.5, in a context of increased revenues for the second quarter, is a clear indication of the strength of this segment.

“While Bombardier Aerospace’s level of new orders in both business aircraft and CSeries commercial aircraft improved substantially year-over-year, we continue to monitor the economic uncertainty and market volatility in the U.S. and Europe,” continued Mr. Beaudoin.

“Both groups were in a situation of free cash flow usage again this quarter, so we must keep our focus on execution. Nevertheless, our very large backlog of $56.9 billlion, added to our portfolio of great products, position us well for the years ahead,” concluded Mr. Beaudoin.

In May 2011 and June 2011, Bombardier Transportation and Bombardier Aerospace renewed their letter of credit facilities.

These facilities no longer require collateral, thus enabling the increase of the overall liquidity of the company by $705 million.

Also in June 2011, Bombardier Inc. increased its $500-million unsecured revolving credit facility to $750 million which will mature in June 2014. This revolving credit facility has not been used since its inception.

Bombardier Transportation increased its revenues by 26%, reaching $2.7 billion for the second quarter ended July 31, 2011, compared to $2.1 billion for the same period last fiscal year.

EBIT was $191 million, compared to $148 million last fiscal year, translating into an EBIT margin of 7.2% versus 7% last fiscal year.

Free cash flow usage amounted to $473 million for the second quarter ended July 31, 2011, compared to a usage of $122 million for the same period last fiscal year. The order backlog totalled $33.9 billion as at July 31, 2011, compared to $33.5 billion as at January 31, 2011.

The order activity in the transportation industry continues at a high level across large European customers and Bombardier Transportation has continued to show its leadership in the market.

During the second quarter, Bombardier Transportation reported $3.9 billion of new orders, representing a book-to-bill ratio of 1.5, compared to $4.3 billion of new orders last fiscal year.

The orders included a partnership with Siemens AG of Germany for the development and supply of components for ICx high speed trains for a Deutsche Bahn (DB) contract, under which a firm order was obtained for 130 trains valued at $1.8 billion.

Bombardier Transportation also won an order from the London Underground for a CITYFLO 650 CBTC signalling system for a value of $577 million as well as an order from the Queensland Government of Australia for the Gold Coast Rapid Transit light rail system and a 15-year maintenance contract, for a value of $265 million.

During the quarter, Bombardier Transportation also signed a framework agreement with DB Regio AG, Germany, for 200 TRAXX diesel locomotives with multi-engine propulsion, estimated at $867 million. Under this agreement, a firm order for 20 locomotives was received, valued at $90 million.

Subsequent to the end of the second quarter, the Chicago Transit Authority (CTA), U.S. exercised an option for 300 additional rapid transit cars, valued at $331 million.