Bombardier returns to profit as restructuring nears completion
MONTREAL (XFNews) - Aerospace and train manufacturer Bombardier Inc returned to profit in its most recent financial year partly due to a reduction in one-off restructuring costs, with a strong performance in its business airline operation offsetting a weaker surface transport performance.
Exceptional charges relating to the restructuring of its surface transportation business fell to 88 mln usd, compared to 172 mln previously.
The restructuring plan, which began in 2004, is "essentially completed", the company said. It added that workforce reductions "are ahead of schedule."
Total sales dipped to 14.7 bln usd from 15.5 bln, which the company said mainly reflects lower rolling stock revenues resulting from decreased mainline revenues in the UK and Germany, lower deliveries of CRJ200 aircraft and a lower volume of pre-owned business aircraft sales.
The fall was partially offset by increased deliveries and improved selling prices of business aircraft and increased deliveries of Q300 turboprops.
On an underlying level, EBITDA from continuing operations before exceptional costs rose to 990 mln usd from 785 mln.
Laurent Beaudoin, Chairman and Chief Executive Bombardier, said: "Our restructuring initiative is near completion, and results are starting to show on the bottom line. Bombardier Capital's non-core portfolios are essentially wound down or sold."
"This year's results indicate that we're doing the right things to restore Bombardier's earnings power and solidify our financial position," he added.
At Jan 31, Bombardier said its order backlog was steady at 31.6 bln usd with higher order intake in both segments offset by adverse foreign exchange movements.