July 30, 2015

Bombardier Announces Financial Results for the Second Quarter Ended June 30, 2015

(All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in the Corporation’s MD&A. See Caution regarding non-GAAP measures at the end of this press release.)

  • Revenues of $4.6 billion, an increase of 2% excluding foreign exchange, compared to the same period last year
  • EBIT of $226 million, or 4.9% of revenues
  • Adjusted net income(1) of $145 million (adjusted EPS(1) of $0.06)
  • Free cash flow usage(1) of $808 million, including a net investment of $439 million in PP&E and intangible assets
  • Available short-term capital resources of $4.4 billion, including cash and cash equivalents of $3.1 billion as at June 30, 2015
  • Backlog of $64.8 billion as at June 30, 2015
  • Launch of the Bombardier transformation plan to improve cost and cash
  • Leadership team strengthened with seven new senior executive appointments, including the appointment of John Di Bert as new Chief Financial Officer in July
  • C Series aircraft on track for entry-into-service in the first half of 2016
  • Global 7000 aircraft entry-into-service in the second half of 2018

(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, 2015. Revenues totalled $4.6 billion for the quarter, compared to $4.9 billion for the same period last fiscal year. Excluding foreign exchange impact, revenues are up 2%.

For the second quarter ended June 30, 2015, earnings before financing expense, financing income and income taxes (EBIT) totalled $226 million, or 4.9% of revenues, compared to $257 million, or 5.3%, for the same period last fiscal year.

Net income totalled $125 million, or earnings per share (EPS) of $0.06, compared to $155 million or $0.08 for the same period the previous year. On an adjusted basis, net income amounted to $145 million, or EPS of $0.06, for the second quarter ended June 30, 2015, compared to $192 million, or $0.10, for the same period the previous year.

For the three-month period ended June 30, 2015, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) amounted to $808 million, compared to a usage of $424 million for the same period last year. As at June 30, 2015, available short-term capital resources of $4.4 billion included cash and cash equivalents of $3.1 billion, compared to $3.8 billion and $2.5 billion, respectively as at December 31, 2014. The overall backlog reached $64.8 billion as at June 30, 2015, compared to $69.1 billion as at December 31, 2014.

“Overall, the second quarter was in line with plan in terms of revenues, EBIT and deliveries, and our liquidity stands at $4.4 billion,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “After five months on the job, I have a better understanding of our challenges and opportunities. We are taking specific action, including the launch of our Bombardier transformation plan, a disciplined approach to cash management, and the strengthening of our leadership team to reshape the company and ensure our long-term success.”

Management has largely completed detailed reviews of Bombardier's two major aerospace development programs. The C Series flight testing is progressing rapidly with over 2,000 hours completed and performance is exceeding targets(1). The aircraft is on track to enter into service in the first half of 2016. Meanwhile, the first Global 7000 flight test vehicle (FTV) is in final assembly and will deliver unmatched performance when the aircraft enters into service in the second half of 2018.

Bombardier Transportation boasts a strong $30.4 billion backlog and recorded a good level of orders in the quarter. One of its newly-established Chinese joint ventures was awarded its first contract to provide an INNOVIA APM 300 automated people mover to the Shanghai metro. This contract demonstrates Bombardier Transportation's leadership position in the rail industry, a position that will be further strengthened by the OneBT improvement initiative, which is starting to gain traction.

Concurrently, the Bombardier transformation plan is being implemented to drive performance across the entire organization. As a first step, the Corporation launched a systematic process to identify and quantify opportunities within each business segment. The main areas of opportunity identified are product cost reduction, better control of working capital and effective use of cash. The plan is now transitioning to the execution phase.

Subsequent to the quarter, Bombardier Inc. announced the appointment of John Di Bert as Senior Vice President and Chief Financial Officer, effective August 10, 2015. Recognized for his financial discipline, Mr. Di Bert is an accomplished executive who has driven multiple optimization initiatives both in periods of growth and consolidation throughout his career.

(1) Key performance targets under certain operating conditions when compared to aircraft currently in production for flights of 500 nautical miles. See the C Series family of aircraft program disclaimer at the end of the MD&A for the quarter ended June 30, 2015.


Business Aircraft

Results of the quarter (PDF)

  • Current economic conditions and geopolitical issues in some regions, such as China, Latin America and Russia, have had an impact on industry-wide order intake. As a result, Business Aircraft announced on May 14, 2015 a reduction in the production rate for the Global 5000 and Global 6000 aircraft.
  • Following the softness in demand, EBIT margin guidance is revised to a range of 5% to 6% for the year.(1)
  • David M. Coleal was appointed as President, Bombardier Business Aircraft.
  • The Global 7000 is a state-of-the-art aircraft with a wing that optimizes both short-field and long-range performance, coupled with a highly efficient engine, the largest cabin and most advanced cockpit. Developing such an aircraft presents challenges, which have impacted the program’s schedule. Consequently, the aircraft will now enter into service in the second half of 2018.
  • Meanwhile, the first FTV is in final assembly, three additional FTVs are in various stages of production and assembly, and the Integrated Systems Test and Certification Rig has been commissioned.

(1)   See forward-looking statements at the end of this press release.

Commercial Aircraft

Results of the quarter (PDF)

  • Bombardier Commercial Aircraft and Swiss International Air Lines (SWISS) announced that SWISS will be the first customer to take delivery and operate the C Series when the CS100 aircraft enters into service in the first half of 2016. SWISS, alongside parent company Deutsche Lufthansa AG (Lufthansa), was previously announced as the launch customer of the C Series aircraft program when it signed a firm purchase agreement for 30 CS100 aircraft and options for an additional 30 C Series aircraft in March 2009. Subsequently, on June 15, 2015, SWISS converted 10 of its 30 firm-ordered CS100 aircraft to the larger CS300 aircraft.
  • Based on flight test results, Bombardier Commercial Aircraft announced that the CS100 and CS300 aircraft are exceeding their original targets for fuel burn, payload, range and airfield performance. In addition, the C Seriesaircraft are on track to meet noise performance targets.(1)
  • Fred Cromer was appointed as President, Bombardier Commercial Aircraft, and Colin Bole, Senior Vice President, Sales and Asset Management.
  • Commercial Aircraft’s EBIT is expected to be basically in line with guidance. However, there is some risk depending on the assumptions used with respect to the level of non-cash provisioning in relation to the dilutive impact of the C Series initial deliveries.(2)

(1) Key performance targets under certain operating conditions when compared to aircraft currently in production for flights of 500 nautical miles. See the C Series family of aircraft program disclaimer at the end of the MD&A for the quarter ended June 30, 2015.

(2)   See forward-looking statements at the end of this press release.

Aerostructures and Engineering Services

Results of the quarter (PDF)

  • Bombardier Aerostructures and Engineering Services has an EBIT margin before special items of 8.8% for the first half of 2015, well ahead of its 4% EBIT guidance. EBIT margin is now expected to reach approximately 6% for the year.(1)

(1) See forward-looking statements at the end of this press release.


Results of the quarter (PDF)

  • The Corporation announced that, following a proactive review of strategic options for its rail business, it is preparing for an initial public offering (IPO) of a minority stake in Bombardier Transportation. When completed, the IPO is expected to crystallize the full value of Bombardier Transportation and further strengthen the Corporation’s financial position, while preserving flexibility should the Corporation wish to participate in future rail equipment industry consolidation. The Corporation intends to file the required documentation with applicable securities regulators during the fourth quarter of this year, subject to market conditions, with the primary listing venue likely to be Germany, where the business segment is headquartered. After the IPO, Bombardier Transportation will continue to be controlled by Bombardier Inc. and consolidated in its financial results.
  • The V300ZEFIRO very high speed train, built in partnership with AnsaldoBreda, received homologation and successfully completed its maiden trip from Milan to Rome.
  • Bombardier Transportation’s newly-established Chinese joint venture, CSR Puzhen Bombardier Transportation Systems Ltd., won its first contract for an INNOVIA APM 300 automated people mover to be delivered to Shanghai Shentong Metro Co. Ltd., further emphasizing the business segment's strong position in the Chinese rail market.
  • Bombardier Transportation was awarded a contract in Vienna to supply and maintain 119 FLEXITY trams for the Vienna transport authority Wiener Linien, valued at approximately $480 million. The order includes an option for an additional 37 trams and further maintenance support.
  • Subsequent to the end of the second quarter, Bombardier Transportation signed rolling stock and maintenance contracts for Transport for London’s LOTRAIN project in the U.K. to build and maintain 45 four-car electrical multiple units. The contracts are valued at approximately $558 million.
  • For the first half of the year, Bombardier Transportation has reached a 5.6% EBIT margin and is on plan to slightly improve its EBIT margin for the year, as compared to 2014, as per original guidance.

Reconciliation of segment to consolidated results (PDF)

About Bombardier

Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2014, we posted revenues of $20.1 billion. News and information are available at  bombardier.com or follow us on Twitter  @Bombardier.

Bombardier, CS100, CS300, C Series, FLEXITY, GlobalGlobal 5000Global 6000Global 7000INNOVIA and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.

For Information

Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514 861 9481

Shirley Chénier
Senior Director, Investor Relations
Bombardier Inc.
+514 861 9481

The Management’s Discussion and Analysis and the interim consolidated financial statements are available at  ir.bombardier.com.


This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations; available liquidities and ongoing review of strategic and financial alternatives, the launch and completion of an initial public offering (IPO) and the proceeds therefrom; the impact of an IPO on our operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; the impact of an IPO on the Corporation’s share price, the statement that a carve-out IPO should help to crystallize share price value, the impact of the sale of equity on our balance sheet and liquidity position, the effect of an IPO on the range of options available to us, our participation in future rail equipment industry consolidation, the stock exchange on which an IPO would be effected, and the capital and governance structure of the Transportation segment following an IPO. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecast results. While management considers their assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and rail industry, political instability and force majeure), operational risks (such as risks related to developing new products and services; fixed-price commitments and production and project execution; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources), financing risks (such as risks related to liquidity and access to capital markets, retirement benefit plan risk, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2014. Certain important assumptions by management in making forward-looking statements include, but are not limited to: the decision to launch an IPO and the timing, size and successful completion thereof; and our ability to consummate an IPO in favourable market conditions. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release refer to the Guidance and forward-looking statements sections in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2014. This press release is not intended to form the basis of any investment decision and there can be no assurance that any IPO or other transaction will be undertaken or completed in whole or in part or of the timing, size and proceeds of any such offering, which will depend on a number of factors, including prevailing market conditions.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect our expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.


This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the interim consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our interim financial report with enhanced understanding of the results and related trends and increases the transparency and clarity of the core results of the business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments' Analysis of results sections in the Corporation’s MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.