Bombardier Financial Results for the 2Q Ended June 30, 2012
- Revenues of $4.2 billion, compared to $4.7 billion last fiscal year
- EBIT of $220 million, or 5.3% of revenues, compared to $296 million, or 6.2%,
last fiscal year
- Net income of $182 million, compared to $211 million last fiscal year
- Diluted earnings per share of $0.10, compared to $0.12 last fiscal year
- Free cash flow usage of $642 million, compared to a usage of $1.1 billion last fiscal year
- Strong liquidity at $3.9 billion, including cash and cash equivalents of $2.5 billion, compared to $4.1 billion and $3.4 billion respectively as at December 31, 2011
- Strong backlog of $56.9 billion, compared to $53.9 billion as at December 31, 2011
- Firm order from NetJets Inc. for 100 Challenger business jets for a total value of $2.6 billion, based on list prices
Bombardier today reported its financial results for the second quarter ended June 30, 2012. Revenues totalled $4.2 billion, compared to $4.7 billion for the corresponding period last fiscal year. Earnings before financing expense, financing income and income taxes (EBIT) totalled $220 million, versus $296 million last fiscal year. The EBIT margin was at 5.3%, compared to 6.2% last fiscal year.
Net income for the second quarter ended June 30, 2012 amounted to $182 million, compared to $211 million for the corresponding period last fiscal year. Diluted earnings per share (EPS) was $0.10, compared to diluted EPS of $0.12 last fiscal year. Free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $642 million for the second quarter ended June 30, 2012, compared to a usage of $1.1 billion last fiscal year. The strong level of liquidity at $3.9 billion includes cash and cash equivalents of $2.5 billion as at June 30, 2012, compared to $4.1 billion and $3.4 billion respectively as at December 31, 2011. The overall backlog increased by $3 billion since the beginning of the year, reaching $56.9 billion as at June 30, 2012.
“As anticipated, our revenues were lower in the second quarter. However, we expect revenues for the full year to be in line with last year’s,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
“In Transportation, revenues were lower due to the timing of completion of certain large contracts while major new orders are still in the start-up phase. We continued to see a good level of activity with $2.9 billion of new orders in the quarter, especially in North America and Europe.”
“In Aerospace, revenues for the quarter were higher at $2.3 billion compared to $2.1 billion last year, with overall deliveries of 62 aircraft compared to 56. The level of new orders in Business Aircraft was quite strong and the momentum continues in Commercial Aircraft with 174 orders and other agreements announced so far this year. Our new aircraft development programs are achieving major milestones and both the CSeries and the Learjet 85 are driving towards entry into service by the end of 2013.”
“Our very large backlog of $56.9 billlion positions us well for the years ahead and is a testament to the success of our overall portfolio of products,” concluded Mr. Beaudoin.
Bombardier Aerospace’s revenues totalled $2.3 billion, compared to $2.1 billion last fiscal year. EBIT totalled $102 million translating into an EBIT margin of 4.5% for the second quarter ended June 30, 2012, compared to $105 million, or 5%, last fiscal year. Free cash flow usage totalled $504 million compared to a usage of $448 million for the corresponding period last fiscal year.
A total of 62 aircraft were delivered during the second quarter ended June 30, 2012 compared to 56 for the corresponding period last fiscal year. Bombardier Aerospace’s backlog increased by 14.5% reaching $25.2 billion as at June 30, 2012, compared to $22 billion as at December 31, 2011.
Bombardier Business Aircraft saw a strong level of order intake with 134 net orders compared to 43 for the corresponding period last fiscal year. This includes the conclusion with NetJets Inc. of the largest business aircraft order in Bombardier’s history, for 100 aircraft of the Challenger family, with options for 175 aircraft. Based on list prices, the value of the firm order is $2.6 billion and could increase to $7.3 billion if all options are exercised. In addition, NetJets Inc. and Bombardier entered into a long-term service agreement valued at $820 million, or $2.3 billion if all options are exercised.
To date, Bombardier Commercial Aircraft has shown a solid performance with 174 orders and other agreements, including 72 firm orders. These orders cover the wide range of our products, and many regions of the world, such as WestJet’s order for 20 Q400 NextGen turboprops, China Express with an order for six CRJ900 NextGen aircraft, Nordic Aviation Capital which ordered 12CRJ1000 NextGen jets, and finally, Privat Air has placed an order for five CSeries aircraft.
The CSeries and Learjet 85 aircraft development programs are making good progress towards entry-into-service at the end of 2013. On the CSeries programs, substantially all the main systems are up and running on “Aircraft 0”, our on-the-ground integrated systems test and certification rig. The progressive commissioning of the systems in “Aircraft 0” allows us to ensure aircraft testing and validation on the ground, prior to first flight.
Our Learjet 85 program is also making good progress. Work on the two first flight test aircraft and on the Complete Aircraft Static Test (CAST) ground test platform is well underway with the production of hundreds of composite components, including the unique 32-foot composite pressure fuselage.