Bombardier announces financial results for the first quarter ended March 31, 2013

Bombardier today reported 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 to $3.5 billion for the same period last fiscal year.

For the first quarter ended March 31, 2013, earnings before financing expense, financing income and income taxes (EBIT) before special items totalled $240 million, or 5.5% of revenues, compared to $188 million, or 5.4%, for the same period last year.

On an adjusted basis, net income amounted to $156 million, or earnings per share (EPS) of $0.08, for the first quarter ended March 31, 2013, compared to $150 million, or EPS of $0.08, for the same period the previous year.

For the three-month period ended March 31, 2013, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $590 million, compared to a usage 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 to $4.0 billion and $2.6 billion respectively as at December 31, 2012. The overall backlog reached $63.0 billion as at March 31, 2013, compared to $64.9 billion as at December 31, 2012.

“We had a good first quarter, with an overall increase in revenues of 25%,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. “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% 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 to $1.5 billion for the same period last fiscal year. EBIT before special items totalled $101 million or 4.5% of revenues for the first quarter ended March 31, 2013, compared to $66 million, or 4.4%, last fiscal year.

Free cash flow usage totalled $461 million (including net additions to property, plant and equipment (PP&E) and intangible assets of $503 million) for the first quarter ended March 31, 2013, compared to a  usage 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 to 37 for the same period last fiscal year, including 39 business aircraft, compared to 29 for the same quarter last fiscal year.

Bombardier Aerospace signed a purchase agreement with Russia’s Ilyushin Finance Co. (IFC) 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 to $32.9 billion as at December 31, 2012.

Bombardier Transportation

Bombardier Transportation’s revenues amounted to $2.1 billion for the three-month period ended March 31, 2013, compared to $2.0 billion for the same period last year. EBIT totalled $139 million, or 6.7% of revenues, compared to $122 million, or 6.2%, for the same quarter the previous year. Free cash flow usage totalled $73 million for the quarter ended March 31, 2013, compared to a usage of $85 million for the same period last fiscal year.

New orders reached $2.0 billion (book-to-bill ratio of 0.9), compared to $1.2 billion for the same quarter last fiscal year. The order backlog totalled $31.0 billion as at March 31, 2013, compared to $32.0 billion as at December 31, 2012 (comparative numbers have been restated to exclude Bombardier Transportation’s proportionate share of joint ventures’ backlog). The $1 billion or 3% 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 to December 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 license 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 (UVZ) establishing a partnership for joint development of metros for the market in Russia and the CIS.

Financial Highlights

Selected Financial Information

DIVIDENDS ON COMMON SHARES

Class A and Class B Shares
A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple Voting) and of $0.025 Cdn 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 $0.000390625 Cdn per share.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares
A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares has been paid on March 15 and April 15, 2013.

Series 3 Preferred Shares
A quarterly dividend of $0.195875 Cdn 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 $0.390625 Cdn 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.