Bombardier reported financial results for the second quarter of 2009. Revenues totalled .9 billion, the same as the corresponding period last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled 3 million, compared to 1 million last fiscal year. EBIT margin reached 6.3% versus last year’s 7.5%.
Net income for the second quarter ended July 31, 2009 amounted to 2 million, compared to 9 million for the same period last fiscal year. The overall backlog stands at .5 billion, as at July 31, 2009, compared to .2 billion as at January 31, 2009.
“We are taking the necessary actions to face the current difficult economic environment, which continues to have an impact on our results”, said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. “The aerospace industry as a whole continues to experience challenging conditions, nevertheless, Bombardier Aerospace delivered 80 aircraft during the quarter, compared to 89 last year, and increased its market share position in business aircraft.”
“Bombardier Transportation had a good quarter. Revenues, EBIT margin as well as free cash flow improved compared to last year and the group is well on its way to achieving its target EBIT margin of 6% for the full fiscal year.”
“Overall, we have strong fundamentals, a large backlog, a solid liquidity position, and we remain focused on reducing costs and improving cash flow generation,” concluded Mr. Beaudoin.
On September 1, 2009, Bombardier’s Board of Directors approved a 0-million two-year unsecured revolving credit facility with a syndicate of commercial banks and other institutions, arranged by National Bank Financial Inc. This facility will be available for the general working capital needs of the Corporation.
* Revenues of $2.4 billion
* EBITDA of $247 million, or 10.3% of revenues
* EBIT of $154 million, or 6.4% of revenues
* Free cash flow usage of $10 million
* Negative 38 aircraft net orders
* Order backlog of $19.6 billion
Bombardier Aerospace’s revenues amounted to $2.4 billion for the three-month period ended July 31, 2009, compared to $2.5 billion for the same period the previous year. The decrease is mainly due to a decrease in manufacturing revenues due to lower deliveries and selling prices for business aircraft, partially offset by a higher percentage of wide-body aircraft deliveries; partially offset by higher deliveries and selling prices for commercial aircraft and the sale of an additional amphibious aircraft.
For the second quarter ended July 31, 2009, EBIT reached $154 million, or 6.4% of revenues, compared to $243 million, or 9.7% of revenues, for the same period the previous year. The 3.3 percentage-point decrease is mainly due to higher cost of sales per unit, mainly due to price escalations of materials and disruption costs in connection with changes in production rates, lower selling prices for business aircraft, and the mix between business and commercial aircraft deliveries; partially offset by liquidated damages from customers as a result of business aircraft order cancellations, a positive variance on certain financial instruments carried at fair value, lower selling, general and administrative expenses, improved selling prices for commercial aircraft and lower amortization expenses.
Free cash flow usage totalled $10 million for the second quarter ended July 31, 2009, compared to free cash flow of $100 million for the same period last fiscal year. The $110-million decrease is mainly due to lower profitability and higher net additions to property, plant and equipment and intangible assets; partially offset by a positive period-over-period variation in net change in non-cash balances related to operations.
For the quarter ended July 31, 2009, aircraft deliveries totalled 80, compared to 89 for the same period the previous year. The 80 deliveries consisted of 51 business, 28 commercial and one amphibious aircraft (66 business and 23 commercial aircraft for the corresponding period last fiscal year).
Bombardier Aerospace recorded 38 negative net orders during the quarter ended July 31, 2009, compared to 175 net orders during the corresponding period the previous year. The 38 negative net orders consisted of 27 new orders and 80 cancellations of business aircraft and 15 new orders of commercial aircraft (162 business, 11 commercial and two amphibious aircraft for the corresponding period last fiscal year).
Bombardier Aerospace’s firm order backlog stood at $19.6 billion as at July 31, 2009, compared to $23.5 billion as at January 31, 2009. The decrease in the order backlog for business and regional jets reflects the significantly higher business aircraft cancellations, as well as a level of new orders lower than revenues. This decline was partially offset by orders received for the CSeries family of aircraft in the first quarter of the current fiscal year.