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Bombardier stocks drop after Q4 results come out

March 1, 2012, Montreal - Shares of Bombardier dropped more than four per cent in early trading Thursday after the Montreal-based company beat analyst expectations, but reported weaker results, particularly in revenues.


March 1, 2012
By The Canadian Press

The company's stock was down 21 cents to $4.54 on the Toronto Stock Exchange.

The drop came after Bombardier reported net income of US$214 million or 12 cents per share for the fourth quarter ended Dec. 31.

That's down from $295 million or 16 cents per share a year earlier, in the comparable period that was a month longer, ending Jan. 31, 2011.

The results reflected a change in the reporting period for Bombadier's aerospace division, which shifted its year-end to Dec. 31 from Jan. 31, shortening the reported quarter by a month. The move brought the reporting period in line with Bombardier's transportation operations, which already reports ending Dec. 31.

Quarterly revenues totalled $4.3 billion, compared to $5.6 billion in the previous year.

In its outlook, Bombardier Aerospace said it expects to deliver 180 business aircraft and 55 commercial aircraft in 2012, and Desjardins analyst Benoit Poirier noted that he was disappointed with lower margins in the division, which are about five per cent, compared to his estimate of seven per cent.

"Each one per cent change in margin has a four-cent U.S. impact on EPS,'' he noted.

"The company has also withdrawn its long-term aerospace margin guidance of 10 per cent.''

For the year ended Dec. 31, Bombardier posted net earnings of $837 million or 47 cents per share, compared to $775 million or 42 cents per share in the previous year.

Annual revenues rose to $18.3 billion, compared to $17.9 billion for the year prior.