Bombardier Inc.
TSX : BBD.A
TSX : BBD.B

Bombardier Inc.

March 01, 2012 06:00 ET

Bombardier Announces Financial Results for the Fourth Quarter and the Fiscal Year Ended December 31, 2011

MONTRÉAL, QUÉBEC--(Marketwire - March 1, 2012) - (TSX:BBD.A)(TSX:BBD.B)

(All amounts in this press release are in U.S. dollars unless otherwise indicated.)

(The fourth quarter and fiscal year ended December 31, 2011 comprise two and 11 months of Bombardier Aerospace results, and three and 12 months of Bombardier Transportation results.)

Fiscal year highlights

  • Consolidated revenues of $18.3 billion, compared to $17.9 billion last fiscal year
  • EBITDA of $1.5 billion, compared to $1.6 billion last fiscal year
  • EBIT of $1.2 billion, or 6.6% of revenues, compared to $1.2 billion, or 6.7%, last fiscal year
  • Net income of $837 million (diluted EPS of $0.47), compared to $775 million (diluted EPS of $0.42) last fiscal year
  • Investment of $1.5 billion in new products and PP&E, compared to $1.1 billion last fiscal year
  • Free cash flow usage of $1.2 billion, compared to a free cash flow of $567 million last fiscal year
  • Strong cash position of $3.4 billion as at December 31, 2011, compared to $4.2 billion as at January 31, 2011
  • Solid backlog of $53.9 billion as at December 31, 2011, compared to $52.7 billion as at January 31, 2011

Bombardier (TSX:BBD.A)(TSX:BBD.B) today reported its overall financial results for the fourth quarter and the year ended December 31, 2011. Revenues totalled $18.3 billion, compared to $17.9 billion last fiscal year. Earnings before financing expense, financing income and income taxes (EBIT) amounted to $1.2 billion, the same as last fiscal year. EBIT margin was 6.6% compared to last fiscal year's 6.7%. Net income reached $837 million, compared to $775 million last fiscal year. Diluted earnings per share (EPS) reached $0.47, compared to $0.42 last fiscal year.

Free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) was at $1.2 billion for the year ended December 31, 2011 compared to a free cash flow of $567 million last fiscal year. The cash position totalled $3.4 billion as at December 31, 2011, compared to $4.2 billion as at January 31, 2011. The overall backlog reached $53.9 billion as at December 31, 2011, compared to $52.7 billion as at January 31, 2011.

"We delivered good financial results in 2011, with increased revenues, net income and EPS," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.

"In Aerospace, we navigated through another demanding year with skill and efficiency. We maintained our profitability, increased our level of net orders, grew our backlog, further enhanced our industry leadership in business jets, and continued to invest in many new programs while addressing the challenges in our regional aircraft business," continued Mr. Beaudoin. "We strengthened our CSeries's customer diversity by signing up five new operators which brought our total orders, letters of intent and options to over 300 CSeries aircraft. The current level of firm orders represents the first two and a half years of production."

"At Transportation, we continued to see steady growth, increasing revenues to $9.8 billion. We delivered good profitability with a strong EBIT margin of 7.2% for the second consecutive year, albeit with execution issues on some contracts. The group generated a solid order intake with a book-to-bill ratio of 1.0 and its large backlog gives us good visibility on future revenues."

"With our two groups, we're uniquely suited to weather today's environment, with our unrivalled product portfolio and greater geographical reach. And we keep on investing and putting the pieces in place to be a very different company in five years. A company with exciting new products in service and increased revenues in emerging markets,"concluded Mr. Beaudoin.

Bombardier Transportation intends to enter into a three-year unsecured revolving credit facility of up to €500 million (approximately $650 million), under which the proceeds of drawings will be used for general corporate purposes of the group. Negotiations are currently taking place with the joint book runners and the execution of the definitive agreement is anticipated in late March or April 2012. Although Bombardier Transportation is in negotiations to finalize the terms of this facility and the related agreements, there can be no assurance that this facility will be available on mutually acceptable terms.

Bombardier Aerospace

At Bombardier Aerospace, revenues totalled $8.6 billion, compared to $8.8 billion last fiscal year, while EBIT totalled $502 million, or 5.8% of revenues, compared to $554 million, or 6.3%, last fiscal year. Bombardier Aerospace's backlog increased to $22 billion as at December 31, 2011, compared to $19.2 billion as at January 31, 2011. The group recorded 249 net orders for the fiscal year ended December 31, 2011, for a book-to-bill ratio of 1.0, compared to 201 net orders, for a book-to-bill of 0.8, last fiscal year. Deliveries totalled 245 aircraft for the fiscal year ended December 31, 2011, compared to 256 last fiscal year, including 163 business aircraft, compared to 155 aircraft last year. In the market categories in which it competes, Bombardier Business Aircraft is the market leader for the 8th consecutive year, with a market share of 37% based on revenues, up from 35% last year. Bombardier Commercial Aircraft delivered 78 units in the fiscal year ended December 31, 2011, compared to 97 aircraft in the previous year.

Bombardier Aerospace expects to deliver approximately 180 business aircraft and 55 commercial aircraft for the fiscal year 2012. EBIT margin for the year ending December 31, 2012 is expected to be approximately 5%.

Subsequent to the fiscal year ended December 31, 2011, Bombardier Aerospace received a firm order for five CS100 airliners and options for an additional five CS100 aircraft from PrivatAir. Based on the list price, the firm order is valued at approximately $309 million and could increase to $636 million if all options are exercised. In addition, a firm order was placed by PT. Garuda Indonesia (Persero) Tbk. for six CRJ1000 Next Gen regional jets with options for an additional 18 aircraft. The firm order is valued at $297 million, based on the list price, and could increase to $1.32 billion should all options be exercised. The group also received an order from Ethiopian Airlines for five Q400 NextGen airliners, as well as an order from Horizon Air for two Q400 NextGen aircraft. Based on the list price, these orders are valued at $220 million.

Bombardier Transportation

Bombardier Transportation's revenues totalled $9.8 billion, compared to $9.1 billion last fiscal year. EBIT amounted to $700 million, or 7.2% of revenues, compared to $651 million, or 7.2%, last fiscal year. The group keeps on working toward its EBIT margin target of 8% by 2013.

The order intake totalled $9.7 billion, compared to $14.3 billion last fiscal year, resulting in a book-to-bill ratio of 1.0. The order backlog stood at $31.9 billion as at December 31, 2011 compared to $33.5 billion as at January 31, 2011. The decrease is mainly due to the impact of foreign exchange.

During the year, Bombardier Transportation continued to benefit from a strong level of order activity across all segments and geographies. Notably, the group signed an agreement with Siemens AG, Germany, to be a partner to develop and supply important components for up to 300 ICx high speed trains for Deutsche Bahn AG, Germany. A firm order for 130 trains, valued at $1.8 billion for Bombardier Transportation, was obtained under this agreement. A framework agreement was signed with Deutsche Bahn Regio AG, for 200 TRAXX diesel locomotives with multi-engine propulsion, estimated at $867 million. A firm order for a total of 20 locomotives, valued at $90 million, was obtained under this agreement.

The group also signed several significant contracts in the year, one with Deutsche Bahn Regio AG, for 90 electrical multiple units of the ET430 series, valued at $648 million, another one with London Underground, in the United Kingdom, for a CITYFLO 650 CBTC signalling system, valued at $577 million, and with the Chicago Transit Authority, in the United States, for 300 additional rapid transit cars, valued at $331 million.

FINANCIAL HIGHLIGHTS
(In millions of U.S. dollars, except per share amounts, which are shown in dollars)
For the fourth quarters ended December 31 January 31
2011(1) 2011
BA BT Total BA BT Total
Results of operations
Revenues$2,016 $2,300 $4,316 $3,091 $2,495$5,586
Cost of sales 1,717 1,884 3,601 2,635 2,001 4,636
Gross margin 299 416 715 456 494 950
SG&A 132 207 339 182 190 372
R&D 27 48 75 39 47 86
Other expense (income) 13 (5) 8 13 52 65
EBIT$127 $166 293 $222 $205 427
Financing expense 156 184
Financing income (123) (146)
EBT 260 389
Income taxes 46 94
Net income $214 $295
Attributable to :
Equity holders of Bombardier Inc. $213 $289
Non-controlling interests 1 6
$214 $295
EPS (in dollars):
Basic and diluted $0.12 $0.16
Segmented free cash flow$110 $564 $674 $762 $799$1,561
Net income taxes and net interest paid (84) (107)
Free cash flow $590 $1,454
For the fiscal years endedDecember 31 January 31
2011(2) 2011
BA BT Total BA BT Total
Results of operations
Revenues$8,594 $9,753 $18,347 $8,809 $9,083$17,892
Cost of sales 7,355 8,089 15,444 7,495 7,460 14,955
Gross margin 1,239 1,664 2,903 1,314 1,623 2,937
SG&A 621 818 1,439 623 754 1,377
R&D 122 149 271 172 147 319
Other expense (income) (6) (3) (9) (35) 71 36
EBIT$502 $700 1,202 $554 $651 1,205
Financing expense 681 684
Financing income (519) (476)
EBT 1,040 997
Income taxes 203 222
Net income $837 $775
Attributable to :
Equity holders of Bombardier Inc. $837 $762
Non-controlling interests - 13
$837 $775
EPS (in dollars):
Basic $0.47 $0.43
Diluted $0.47 $0.42
Segmented free cash flow$(453)$(424)$(877)$5 $741$746
Net income taxes and net interest paid (355) (179)
Free cash flow (usage) $(1,232) $567
BA: Bombardier Aerospace; BT : Bombardier Transportation
(1)The fourth quarter ended December 31, 2011 comprises two months of BA's results and three months of BT's results.
(2)The fiscal year ended December 31, 2011 comprises 11 months of BA's results and 12 months of BT's results.

FINANCIAL RESULTS FOR THE FOURTH QUARTER AND THE FISCAL YEAR ENDED DECEMBER 31, 2011

(The fourth quarter and fiscal year ended December 31, 2011 comprise two and 11 months of Bombardier Aerospace results, and three and 12 months of Bombardier Transportation results.)

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $4.3 billion for the fourth quarter ended December 31, 2011, compared to $5.6 billion for the fourth quarter last fiscal year. For the year ended December 31, 2011, consolidated revenues reached $18.3 billion, compared to $17.9 billion last year.

For the fourth quarter ended December 31, 2011, EBIT amounted to $293 million, or 6.8% of revenues, compared to $427 million, or 7.6%, for the corresponding period last year. For the year ended December 31, 2011, EBIT reached $1.2 billion, or 6.6% of revenues, compared to $1.2 billion, or 6.7%, for the previous year.

Net financing expense amounted to $33 million and $162 million respectively for the fourth quarter and fiscal year ended December 31, 2011, compared to $38 million and $208 million for the corresponding periods in the last fiscal year. The $5-million decrease for the fourth quarter is mainly due to higher net financing income related to certain financial instruments and lower interest expense on long-term debt after effect of hedges, in part as a result of the quarter ended December 31, 2011 comprising only two months; partially offset by higher financing expense related to changes in discount rates for provisions and gain on repurchase of long-term debt in the fiscal year ended January 31, 2011. The $46-million decrease for the fiscal year is mainly due to lower net financing expense related to retirement benefits, lower interest expense on long-term debt after effect of hedges, in part as a result of the quarter ended December 31, 2011 comprising only two months, and higher interest income on cash and cash equivalents; partially offset by higher financing expense related to changes in discount rates for provisions and gains on repurchase of long-term debt in the fiscal year ended January 31, 2011.

The effective income tax rate was 17.7% and 19.5% respectively for the fourth quarter and fiscal year ended December 31, 2011, compared to the statutory income tax rate in Canada of 28.4%. The lower effective tax rates are mainly due to the positive impact of the recognition of income tax benefits related to tax losses and temporary differences, partially offset by unrecognized tax benefits.

Net income amounted to $214 million, or diluted EPS of $0.12, for the fourth quarter of fiscal year ended December 31, 2011, compared to $295 million, or diluted EPS of $0.16, for the corresponding period the previous year. For the year ended December 31, 2011, net income was $837 million, or diluted EPS of $0.47, compared to $775 million, or diluted EPS of $0.42, last year.

For the fourth quarter ended December 31, 2011, free cash flow amounted to $590 million, compared to $1.5 billion the previous year. For the year ended December 31, 2011, free cash flow usage amounted to $1.2 billion, compared to a free cash flow of $567 million last fiscal year.

As at December 31, 2011, Bombardier's order backlog stood at $53.9 billion, compared to $52.7 billion as at January 31, 2011.

Bombardier Aerospace

  • Revenues of $2 billion for the fourth quarter; $8.6 billion for the fiscal year ended December 31, 2011
  • EBITDA of $166 million for the fourth quarter; $697 million for the fiscal year ended December 31, 2011
  • EBIT of $127 million, or 6.3% of revenues, for the fourth quarter; $502 million, or 5.8%, for the fiscal year ended December 31, 2011
  • Free cash flow of $110 million for the fourth quarter; free cash flow usage of $453 million for the fiscal year ended December 31, 2011
  • Order backlog of $22 billion as at December 31, 2011
  • Subsequent to year-end, signature of more than 40 orders and options for commercial aircraft

Bombardier Aerospace's revenues amounted to $2 billion for the two-month period ended December 31, 2011, compared to $3.1 billion for the three-month period the previous year. The decrease is mainly due to lower revenues for commercial aircraft mainly due to lower deliveries, in part as a result of the quarter ended December 31, 2011 comprising only two months, and lower revenues for business aircraft mainly due to lower deliveries as a result of the quarter ended December 31, 2011 comprising only two months, partially offset by higher net selling prices for business aircraft. Revenues amounted to $8.6 billion for the year ended December 31, 2011, compared to $8.8 billion for the previous year. The decrease is mainly due to lower revenues for commercial aircraft mainly due to lower deliveries, in part as a result of the fiscal year ended December 31, 2011 comprising only 11 months; partially offset by higher revenues for business aircraft, mainly due to higher deliveries despite the 11-month fiscal year ended December 31, 2011, and higher net selling prices.

For the fourth quarter ended December 31, 2011, EBIT amounted to $127 million, or 6.3% of revenues, compared to $222 million, or 7.2%, for the corresponding period the previous year. The 0.9 percentage-point decrease is mainly due to lower absorption of selling, general and administrative (SG&A) expenses, lower margins for commercial aircraft, lower margins from service activities, lower liquidated damage payments from customers upon cancellation of orders and an unfavourable mix of business aircraft deliveries; partially offset by a mix between business and commercial aircraft deliveries and higher net selling prices for business aircraft.

For the year ended December 31, 2011, EBIT amounted to $502 million, or 5.8% of revenues, compared to $554 million, or 6.3%, for the previous year. The 0.5 percentage-point decrease is mainly due to lower liquidated damages payments from customers upon cancellation of orders, higher costs of sales per unit mainly due to price escalation of materials, lower margins from sales of pre-owned aircraft due to an unfavourable mix and higher write-downs of pre-owned business aircraft inventories, reduction in other income, and lower margins from service activities; partially offset by higher net selling prices for business aircraft, lower research and development (R&D) expenses mainly due to lower amortization of program tooling and a mix between business and commercial aircraft deliveries.

Free cash flow totalled $110 million for the fourth quarter ended December 31, 2011, compared to $762 million for the corresponding period in the last fiscal year. The $652-million decrease is mainly due to a negative period-over-period variation in net change in non-cash balances related to operations, a lower EBITDA and higher net additions to property, plant and equipment (PP&E) and intangible assets. For the year ended December 31, 2011, free cash flow usage amounted to $453 million, compared to a free cash flow of $5 million for the previous year. The $458-million decrease is mainly due to higher net additions to PP&E and intangible assets, due to our significant investments in product development, a lower EBITDA and a negative period-over-period variation in net change in non-cash balances related to operations.

For the two-month period ended December 31, 2011, aircraft deliveries totalled 60, compared to 100 for the corresponding three-month period in the previous year. The 60 deliveries consisted of 48 business aircraft, 11 commercial aircraft and 1 amphibious aircraft (55, 44 and 1 aircraft respectively for the three-month period in the last fiscal year). During the fiscal year ended December 31, 2011, Bombardier Aerospace delivered 245 aircraft, compared to 256 aircraft for the fiscal year ended January 31, 2011. Aircraft delivered during the fiscal year ended December 31, 2011 consisted of 163 business aircraft, 78 commercial aircraft and 4 amphibious aircraft (155, 97 and 4 aircraft respectively in the last fiscal year).

Deliveries for fiscal year 2012 are expected to be approximately 180 business aircraft and 55 commercial aircraft.

Bombardier Aerospace received 43 net orders during the two-month period ended December 31, 2011, compared to 88 during the corresponding three-month period the previous year. The 43 net orders consisted of 41 business aircraft and 2 commercial aircraft (74 business, 13 commercial and 1 amphibious aircraft for the corresponding three-month period in the last fiscal year). During the fiscal year ended December 31, 2011, Aerospace received 249 net orders compared to 201 for the fiscal year ended January 31, 2011. Net orders during the fiscal year ended December 31, 2011 consisted of 191 business aircraft, 54 commercial aircraft and 4 amphibious aircraft (107, 93 and 1 aircraft respectively in the last fiscal year).

Aerospace's firm order backlog reached $22 billion as at December 31, 2011, compared to $19.2 billion as at January 31, 2011. This 15%-increase is mainly due to an increase in orders for large business aircraft and the CSeries family of aircraft, partially offset by lower orders of turboprops and regional jets.

Bombardier Transportation

  • Revenues of $2.3 billion for the fourth quarter; $9.8 billion for the fiscal year ended December 31, 2011
  • EBITDA of $202 million for the fourth quarter; $838 million for the fiscal year ended December 31, 2011
  • EBIT of $166 million, or 7.2% of revenues, for the fourth quarter; $700 million, or 7.2%, for the fiscal year ended December 31, 2011
  • Free cash flow of $564 million for the fourth quarter; free cash flow usage of $424 million for the fiscal year ended December 31, 2011
  • Order intake of $3 billion (book-to-bill ratio of 1.3) for the fourth quarter; $9.7 billion (book-to-bill ratio of 1.0) for the fiscal year ended December 31, 2011
  • Order backlog of $31.9 billion as at December 31, 2011

Bombardier Transportation's revenues amounted to $2.3 billion for the three-month period ended December 31, 2011, compared to $2.5 billion for the same period last year. The decrease is mainly due to lower activities in rolling stock due to the phasing out of existing contracts ahead of ramping-up production on new contracts in: commuter and regional trains in Europe and Asia, intercity and high speed trains in Asia, metro cars in Asia and Europe, locomotives in Europe, and propulsion and controls mainly in Asia and Europe; partially offset by higher activities due to the ramp-up of production on existing contracts and new orders in: commuter and regional trains in region Other, light rail vehicles mainly in Europe and Asia, mass transit and locomotives in North America, intercity, high speed and very high speed trains in Europe, and very high speed trains in Asia.

For the year ended December 31, 2011, revenues totalled $9.8 billion, compared to $9.1 billion for the previous year. The increase reflects a positive currency impact. Excluding this impact, revenue increased mainly because of higher activities due to the ramp-up of production on existing contracts and new orders in intercity, high speed, and very high speed trains in Europe and in very high speed trains in Asia, in metro cars in Europe, in mass transit and locomotives in North America, in commuter and regional trains in region Other and in light rail vehicles mainly in Europe and Asia. The increase was partially offset by lower activities due to the phasing out of existing contracts ahead of ramping-up production on new contracts in commuter and regional trains in Europe and Asia, in intercity and high speed trains in Asia, in metro cars in Asia, in propulsion and controls mainly in Asia and Europe, and in locomotives in Europe.

For the fourth quarter ended December 31, 2011, EBIT totalled $166 million, or 7.2% of revenues, compared to $205 million, or 8.2%, for the same quarter the previous year. The EBIT margin decreased by 1.0 percentage-point, mainly as a result of higher SG&A expenses, a lower gross margin due to execution issues in certain projects, and a lower net gain related to foreign exchange fluctuations and certain financial instruments. For the year ended December 31, 2011, EBIT totalled $700 million, compared to $651 million for the previous year. The EBIT margin remained unchanged at 7.2%.

Free cash flow for the quarter ended December 31, 2011 was $564 million, compared to $799 million for the same period in the last fiscal year. The $235-million decrease is mainly due to a negative period-over-period variation in net change in non-cash balances related to operations, and a lower EBITDA. For the year ended January 31, 2011, free cash flow usage was $424 million, compared to free cash flow of $741 million for the previous year. The $1.2 billion decrease is mainly due to a negative period-over-period variation in net change in non-cash balances related to operations. This negative variation is mainly due to an increase in inventories due to the ramp-up of several contracts ahead of deliveries and delays experienced in deliveries for some rolling stock contracts, and the impact of settlements of derivative instruments used in roll-forward cash flow hedge relationships; partially offset by an increase in advances and progress billings related to new orders and existing contracts.

The order intake for the fourth quarter ended December 31, 2011 was $3 billion (book-to-bill ratio of 1.3), compared to $3.4 billion (book-to-bill ratio of 1.4) for the same period in the last fiscal year. During the year ended December 31, 2011, the order intake reached $9.7 billion (book-to-bill ratio of 1.0), compared to $14.3 billion (book-to-bill ratio of 1.6) in the last fiscal year. The order intake for the fourth quarter and fiscal year ended December 31, 2011 reflects positive currency impacts as a result of changes in foreign exchange rates, period-over-period.

Bombardier Transportation's backlog totalled $31.9 billion as at December 31, 2011, compared to $33.5 billion as at January 31, 2011. The 5% decrease is mainly due to the weakening of most foreign currencies versus the U.S. dollar.

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 March 31, 2012 to the shareholders of record at the close of business on March 16, 2012.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on March 16, 2012 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 December 15, 2011, on January 15 and on February 15, 2012.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is payable on April 30, 2012 to the shareholders of record at the close of business on April 13, 2012.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on April 30, 2012 to the shareholders of record at the close of business on April 13, 2012.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended December 31, 2011, were $18.3 billion, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com or follow us on Twitter @Bombardier.

CRJ, CRJ1000, CITYFLO, CS100, CSeries, NextGen, Q400 and TRAXX are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the Consolidated Financial Statements are available at www.bombardier.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, markets and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry into service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue" or "maintain", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the respective Guidance and forward-looking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") in the Corporation's annual report for the fiscal year ended December 31, 2011.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and major rail operators), operational risks (such as risks related to developing new products and services; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; to the environment; dependence on certain customers and suppliers; human resources; fixed-price commitments and production and project execution), financing risks (such as risks related to liquidity and access to capital markets, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual value and increases in commodity prices). For more details, see the Risks and uncertainties section in Other. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect our expectations as at the date of the Corporation's MD&A and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

CAUTION REGARDING NON-GAAP EARNINGS MEASURES

This press release is based on reported earnings in accordance with International Financial Reporting Standards ((IFRS) generally accepted accounting principles (GAAP)). It is also based on EBITDA and Free Cash Flow. These non-GAAP measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that a significant number of the users of its MD&A analyze the Corporation's results based on these performance measures and that this presentation is consistent with industry practice.

Contact Information

  • Bombardier Inc.
    Isabelle Rondeau
    Director, Communications
    +514-861-9481
    www.bombardier.com

    Shirley Chenier
    Senior Director, Investor Relations
    +514-861-9481