Mr. Pierre Beaudoin reports
BOMBARDIER ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2013
Bombardier Inc. has released its financial results for the first quarter ended March 31, 2013. Revenues totalled $4.3-billion for the first quarter ended March 31, 2013, compared with $3.5-billion for the same period last fiscal year.
(All amounts in this press release are in U.S. dollars unless otherwise indicated.)
Highlights:
- Revenues of $4.3-billion, compared with $3.5-billion last fiscal year;
- EBIT (earnings before financing expense, financing income and income taxes) before special items of $240-million, or 5.5 per cent of revenues,
compared with $188-million, or 5.4 per cent, last fiscal year;
- EBIT of $240-million, or 5.5 per cent of revenues, compared with $211-million, or
6.1 per cent, last fiscal year;
- Adjusted net income of $156-million, compared with $150-million last
fiscal year;
- Adjusted earnings per share of eight cents, same as last fiscal year;
- Free cash flow use of $590-million, compared with a use of $695-million last fiscal year;
- Available short-term capital resources of $5.1-billion including cash
and cash equivalents of $3.7-billion as at March 31, 2013, compared with
$4.0-billion and $2.6-billion, respectively, as at Dec. 31, 2012;
- Backlog of $63.0-billion as at March 31, 2013, compared with $64.9-billion
as at Dec. 31, 2012;
- Issuance of $2-billion of unsecured senior notes.
For the first quarter ended March 31, 2013, earnings before financing expense, financing income and income taxes before special items totalled $240-million, or 5.5 per cent of revenues, compared with $188-million, or 5.4 per cent, for the same period last year.
On an adjusted basis, net income amounted to $156-million, or earnings per share of eight cents, for the first quarter ended March 31, 2013, compared with $150-million, or EPS of eight cents, for the same period the previous year.
For the three-month period ended March 31, 2013, free cash flow use (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $590-million, compared with a use of $695-million for the same period the previous year. Available short-term capital resources of $5.1-billion include cash and cash equivalents of $3.7-billion as at March 31, 2013, compared with $4.0-billion and $2.6-billion respectively as at Dec. 31, 2012. The overall backlog reached $63.0-billion as at March 31, 2013, compared with $64.9-billion as at Dec. 31, 2012.
"We had a good first quarter, with an overall increase in revenues of 25 per cent," said Pierre Beaudoin, president and chief executive officer, Bombardier. "Aerospace is showing increased deliveries, revenues and EBIT, and the CSeries tests are progressing well with first flight next month.
"Transportation also saw an increase in revenues and EBIT, and received a good level of new orders across all divisions and key markets, totalling $2-billion. We expect an increase in revenues over the course of the year, while making good progress towards the group's EBIT target of 8 per cent by 2014. With our strong overall backlog of $63-billion and state-of-the-art products coming into service in the next few years, we're very well positioned for solid future growth," concluded Mr. Beaudoin.
Bombardier Aerospace
Bombardier Aerospace's revenues amounted to $2.3-billion for the three-month period ended March 31, 2013, compared with $1.5-billion for the same period last fiscal year. EBIT before special items totalled $101-million or 4.5 per cent of revenues for the first quarter ended March 31, 2013, compared with $66-million, or 4.4 per cent, last fiscal year.
Free cash flow use totalled $461-million (including net additions to property, plant and equipment, and intangible assets of $503-million) for the first quarter ended March 31, 2013, compared with a use of $572-million (including net additions to PP&E and intangible assets of $372-million) for the same period last fiscal year.
A total of 53 aircraft were delivered during the first quarter ended March 31, 2013, compared with 37 for the same period last fiscal year, including 39 business aircraft, compared with 29 for the same quarter last fiscal year.
Bombardier Aerospace signed a purchase agreement with Russia's Ilyushin Finance Co. to acquire 32 CS300 aircraft, with options for an additional 10. This agreement is subject to approval by the company's shareholders and follows a letter of intent signed in 2011. Based on the list price, the conditional order for 32 aircraft is valued at $2.6-billion. Additionally, Danish lessor Nordic Aviation Capital purchased four Q400 NextGen aircraft, bringing its Q400 aircraft fleet to 43.
Subsequent to quarter-end, in April, 2013, Porter Airlines was identified as the previously unidentified Americas-based CSeries aircraft customer when it announced the conversion of its letter of intent to a conditional agreement for up to 30 CS100 aircraft. This $2.08-billion commitment, based on list price, makes Porter Airlines the Canadian CSeries aircraft launch customer. As at March 31, 2013, commitments for the CSeries totalled 388, including 145 firm orders from nine customers in eight countries.
Bombardier Aerospace's backlog totalled $32-billion as at March 31, 2013, compared with $32.9-billion as at Dec. 31, 2012.
Bombardier Transportation
Bombardier Transportation's revenues amounted to $2.1-billion for the three-month period ended March 31, 2013, compared with $2.0-billion for the same period last year. EBIT totalled $139-million, or 6.7 per cent of revenues, compared with $122-million, or 6.2 per cent, for the same quarter the previous year. Free cash flow use totalled $73-million for the quarter ended March 31, 2013, compared with a use of $85-million for the same period last fiscal year.
New orders reached $2.0-billion (book-to-bill ratio of 0.9), compared with $1.2-billion for the same quarter last fiscal year. The order backlog totalled $31.0-billion as at March 31, 2013, compared with $32.0-billion as at Dec. 31, 2012 (comparative numbers have been restated to exclude Bombardier Transportation's proportionate share of joint ventures' backlog). The $1-billion or 3-per-cent decrease in order backlog is mainly due to the weakening of some foreign currencies versus the U.S. dollar as at March 31, 2013, compared with Dec. 31, 2012, mainly the euro and pound sterling.
The group's new orders included a variation order for 170 additional cars under a framework agreement with Siemens AG to develop and supply important components for the next ICx high-speed trains for Deutsche Bahn, valued at $440-million.
In January and April, 2013, Bombardier Transportation's partner, CSR Nanjing Puzhen Rolling Stock Co. Ltd., from China, won orders for 18 low-floor trams and 15 catenary-free low-floor trams, which will be built based on the group's Flexity 2 technology. The vehicles will be equipped with the innovative Flexx urban 3000 bogies and Mitrac 500 propulsion and control system. Bombardier Transportation will support the projects under a technology licence agreement signed in 2012. The latter is the first order worldwide for a catenary-free tram equipped with the new light and long-life Bombardier Primove battery.
After quarter-end, Bombardier Transportation signed agreements with Russian rail manufacturer Uralvagonzavod establishing a partnership for joint development of metros for the market in Russia and the CIS.
FINANCIAL HIGHLIGHTS
(in millions of U.S. dollars, except per share amounts)
For the three-month periods ended March 31,
2013 2012
BA BT Total BA BT Total
restated
Results of
operations
Revenues $ 2,258 $ 2,081 $ 4,339 $ 1,499 $ 1,982 $ 3,481
Cost of sales 1,951 1,772 3,723 1,261 1,645 2,906
-------- ------- -------- -------- -------- ------------
Gross margin 307 309 616 238 337 575
SG&A 158 186 344 162 202 364
R&D 42 28 70 31 34 65
Share of income
of joint
ventures and
associates - (44) (44) - (19) (19)
Other expense
(income) 6 - 6 (21) (2) (23)
-------- ------- -------- -------- -------- ------------
EBIT before
special
items 101 139 240 66 122 188
Special items - - - (23) - (23)
-------- ------- -------- -------- -------- ------------
EBIT 101 139 240 89 122 211
Financing
expense 75 82
Financing
income (40) (45)
-------- ------------
EBT 205 174
Income taxes 57 19
-------- ------------
Net income $ 148 $ 155
======== ============
EPS (basic and
diluted) $ 0.08 $ 0.08
Selected financial information
Dividends on common shares
Class A and Class B shares
A quarterly dividend of 2.5 Canadian cents per share on Class A shares (multiple voting) and of 2.5 Canadian cents per share on Class B shares (subordinate voting) is payable on June 30, 2013, to the shareholders of record at the close of business on June 14, 2013.
Holders of Class B shares (subordinate voting) of record at the close of business on June 14, 2013, also have a right to a priority quarterly dividend of 0.0390625 Canadian cent per share.
Dividends on preferred shares
Series 2 preferred shares
A monthly dividend of 6.25 Canadian cents per share on Series 2 preferred shares was paid on March 15 and April 15, 2013.
Series 3 preferred shares
A quarterly dividend of 19.5875 Canadian cents per share on Series 3 preferred shares is payable on July 31, 2013, to the shareholders of record at the close of business on July 12, 2013.
Series 4 preferred shares
A quarterly dividend of 39.0625 Canadian cents per share on Series 4 preferred shares is payable on July 31, 2013, to the shareholders of record at the close of business on July 12, 2013.
We seek Safe Harbor.
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