Bombardier Announces Financial Results for the Second Quarter Ended June 30, 2013

01-Aug-2013

• Revenues of $4.4 billion, compared to $4.1 billion last fiscal year
• EBIT before special items⁽¹⁾ of $257 million, or 5.8% of revenues, compared to $214 million, or 5.2%, last fiscal year
• EBIT of $288 million, or 6.5% of revenues, compared to $214 million, or 5.2%, last fiscal year
• Adjusted net income⁽¹⁾ of $158 million, compared to $167 million last fiscal year
• Adjusted EPS⁽¹⁾ of $0.09, same as last fiscal year
• Free cash flow usage⁽¹⁾ of $566 million, compared to a usage of $608 million last fiscal year
• Available short-term capital resources of $4.5 billion, including cash and cash equivalents of $3.1 billion as at June 30, 2013, compared to $4.0 billion and $2.6 billion respectively, as at December 31, 2012
• Record backlog of $65.5 billion as at June 30, 2013, compared to $64.9 billion as at December 31, 2012

⁽¹⁾ See Caution regarding Non-GAAP measures at the end of this press release.

Bombardier today reported its financial results for the second quarter ended June 30, 2013. Revenues totalled $4.4 billion for the second quarter ended June 30, 2013, compared to $4.1 billion for the same period last fiscal year.

For the second quarter ended June 30, 2013, earnings before financing expense, financing income and income taxes (EBIT) before special items totalled $257 million, or 5.8% of revenues, compared to $214 million, or 5.2%, for the same period last year.

On an adjusted basis, net income amounted to $158 million, or earnings per share (EPS) of $0.09, for the second quarter ended June 30, 2013, compared to $167 million, or EPS of $0.09, for the same period the previous year.

For the three-month period ended June 30, 2013, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $566 million, compared to a usage of $608 million for the same period last year. As at June 30, 2013, available short-term capital resources of $4.5 billion included cash and cash equivalents of $3.1 billion, compared to $4.0 billion and $2.6 billion respectively as at December 31, 2012. The overall backlog reached a record $65.5 billion as at June 30, 2013, compared to $64.9 billion as at December 31, 2012.

"As expected, our second quarter results showed progress in revenues, EBIT and free cash flow," saidPierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. "Transportation had a good second quarter with increases on all fronts; revenues and free cash flow improved, EBIT margin reached 6.9% and the level of new orders continued strong with a book-to-bill ratio of 1.5."

"Aerospace also performed well with increased profitability and free cash flow, and a record backlog. The CSeries development is making good progress with some of the major milestones already successfully met; the geared turbofan engines are running smoothly and powering key aircraft systems, and the latest software upgrades continue to be successfully implemented. We're now in the final testing stage in preparation for first flight in the coming weeks."

"The outlook for both groups is positive. Our record backlog of $65.5 billion, combined with our significant investments in new products, ensure solid growth in the years to come," concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues amounted to $2.3 billion for the three-month periods ended June 30, 2013 and 2012. EBIT before special items totalled $107 million or 4.7% of revenues for the second quarter ended June 30, 2013, compared to $99 million, or 4.4%, last fiscal year.

Free cash flow usage totalled $459 million (including net addition to property, plant and equipment (PP&E) and intangible assets of $534 million) for the second quarter ended June 30, 2013, compared to a usage of $504 million (including net addition to PP&E and intangible assets of $481 million) for the same period last fiscal year.

Bombardier Aerospace delivered a total of 57 aircraft during the second quarter ended June 30, 2013, compared to 62 for the same period last fiscal year, and received 82 net orders during the second quarter, compared to 146 for the same period last fiscal year.

The Business Aircraft division received significant orders during the second quarter. VistaJet placed an order for 20 Challenger 350 jets, valued at $518 million based on list price, with options for an additional 20, and an undisclosed customer placed an order for 12 Global 8000 jets, valued at $804 million based on list price. In Commercial Aircraft, Ilyushin Finance Co. (IFC) of Russia firmed up an agreement for 32 CS300 aircraft with options for an additional 10. The firm order is valued at $2.6 billion, based on list price.

Bombardier Aerospace's backlog totalled a record $33.4 billion as at June 30, 2013, compared to $32.9 billion as at December 31, 2012.

Bombardier Transportation

Bombardier Transportation's revenues amounted to $2.2 billion for the three-month period ended June 30, 2013, compared to $1.8 billion for the same period last year. EBIT totalled $150 million, or 6.9% of revenues, compared to $115 million, or 6.3%, for the same quarter the previous year. Free cash flow usage totalled $21 million for the quarter ended June 30, 2013, compared to a usage of $44 million for the same period last fiscal year.

New orders reached $3.2 billion (book-to-bill ratio of 1.5), compared to $2.9 billion for the same quarter last fiscal year. The order backlog totalled $32.1 billion as at June 30, 2013, compared to $32.0 billion as at December 31, 2012.

During the second quarter ended June 30, 2013, in addition to several small and medium orders won across all segments and geographies, Bombardier Transportation further strengthened its position as market leader by securing three large and strategic tenders in Europe. The group signed a frame agreement with Deutsche Bahn AG (DB) for up to 450 electric locomotives for a value of up to $2 billion under which it received a first firm order for 130 locomotives for a value of $573 million. This is the biggest contract for electric locomotives in Bombardier Transportation's core European markets over the past several years. The group also signed one of the largest metro orders in Europe in recent history with SL, the Stockholm Public Transport Authority, for 96 new generation MOVIA C30 metro vehicles valued at $771 million. Finally, the group won an order from the S-Bahn Hamburg GmbH, a subsidiary of DB, to deliver 60 new single and dual-voltage commuter trains valued at $427 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 September 30, 2013 to the shareholders of record at the close of business on September 13, 2013.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on September 13, 2013 also have a right to a priority quarterly dividend of $0.000390625 Cdn per share.

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 May 15, June 15 and July 15, 2013.

Series 3 Preferred Shares

A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares is payable on October 31, 2013 to the shareholders of record at the close of business on October 18, 2013.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on October 31, 2013 to the shareholders of record at the close of business on October 18, 2013.