Bombardier reports positive 2Q2019 commercial aerospace EBIT on sale of Q Series programme

Bombardier reported (01-Aug-2019) the following 2Q2019 highlights for its Commercial Aircraft segment for 2Q2019:

• Completed the sale of the Q Series aircraft programme assets on 31-May-2019, including after market operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), a wholly owned subsidiary of Longview Aviation Capital Corp, for gross proceeds of USD298 million;
• Entered a definitive agreement with Mitsubishi Heavy Industries (MHI) for the sale of its regional jet programme for a cash consideration of USD550 million payable upon closing and the assumption by MHI of liabilities related to credit and residual value guarantees and lease subsidies amounting to approximately USD200 million;
  • The CRJ production facility in Mirabel will remain with Bombardier and will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the 2H2020. The transaction is currently expected to close during 1H2020 subject to regulatory approvals and customary closing conditions;
• Revenues reached USD516 million during 2Q2019 on increased deliveries, including six Q400 deliveries prior to completion of the Q Series aircraft programme sale and 11 CRJs. The company saw a 15% year-on-year revenue decrease is due to C Series deliveries being included in 1H2018;
• Segment generated adjusted EBIT of USD12 million, which includes USD21 million contribution from commercial aircraft programmes, offset by USD9 million share of net loss in the Airbus Canada Limited Partnership. EBIT for 2Q2019 was USD226 million, largely driven by the USD219 million gain on the sale of the Q Series aircraft program to Longview. [more - original PR]