Bombardier announces first quarter results
June 1, 2011, Montreal - Bombardier today released its financial results for the first quarter ended April 30, 2011. This is the first interim reporting under IFRS.
June 1, 2011 By Carey Fredericks
Revenues reached $4.7 billion, a 9 per cent increase, compared to $4.3 billion last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled $312 million, compared to $279 million last fiscal year, representing an EBIT margin of 6.7 per cent for the first quarter ended April 30, 2011, compared to 6.5 per cent for the corresponding period last fiscal year.
Net income reached $220 million, compared to $195 million for the same period last fiscal year. Diluted earnings per share (EPS) was $0.12 for the three-month period ended April 30, 2011, compared to diluted EPS of $0.11 for the same period last fiscal year. The overall backlog reached $55.1 billion, compared to $52.7 billion as at January 31, 2011.
Free cash flow (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) usage totalled $409 million, compared to a usage of $217 million for the same period last fiscal year. The cash position stood at $3.9 billion as at April 30, 2011, compared to $4.2 billion as at January 31, 2011.
"Overall, both groups had a good performance during the first quarter with increased revenues and EBIT, translating into higher net income and EPS," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
"Bombardier Aerospace has started to benefit from a stronger business aircraft market, especially at the high end. And once again, our state-of-the-art business aircraft product offering has paid off, as illustrated by the increased level of new orders this quarter," said Pierre Beaudoin. "Our commercial aircraft segment, although slower to recover, is seeing an improved level of interest from customers."
"Bombardier Transportation continues to do well, posting good results again this quarter. Last year's high order intake is starting to translate into increased revenues year-over-year and the group is making steady progress towards its EBIT margin target of 8 per cent."
"We have the best product portfolio of our industries, our balance sheet is strong and our impressive backlog of $55.1 billion gives us great visibility on revenues for the next few years," concluded Mr. Beaudoin.
On May 27, 2011, Bombardier renewed Bombardier Transportation's letter of credit facility for EUR3.4 billion (approximately $4.9 billion), at a better rate and without collateral, enabling the Corporation to release an amount of EUR404 million ($577 million) of the invested collateral related to the previous facility.