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

Bombardier Inc.

March 31, 2011 06:01 ET

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

MONTREAL, QUEBEC--(Marketwire - March 31, 2011) - Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)

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

Fiscal year highlights

  • Consolidated revenues of $17.7 billion, compared to $19.4 billion last fiscal year

  • EBITDA of $1.5 billion, compared to $1.6 billion last fiscal year

  • EBIT of $1.1 billion or 5.9% of revenues, compared to $1.1 billion, or 5.7%, last fiscal year

  • Net income of $769 million (diluted EPS of $0.42), compared to $707 million (diluted EPS of $0.39) last fiscal year

  • Free cash flow of $605 million, compared to a free cash flow usage of $215 million last fiscal year

  • Strong cash position of $4.2 billion as at January 31, 2011, compared to $3.4 billion, as at January 31, 2010

  • Backlog of $50.1 billion as at January 31, 2011, compared to $43.8 billion as at January 31, 2010

  • Subsequent to year-end, NetJets Inc. ordered up to 120 business aircraft of the Global family

Bombardier today reported its overall financial results for the fourth quarter and the year ended January 31, 2011. Revenues totalled $17.7 billion, compared to $19.4 billion last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) amounted to $1.1 billion, the same as last fiscal year. EBIT margin increased to 5.9% compared to last year's 5.7%. Net income reached $769 million, compared to $707 million last fiscal year. Diluted earnings per share (EPS) reached $0.42, compared to $0.39 last fiscal year.

Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) of $605 million for the year ended January 31, 2011 compared to a free cash flow usage of $215 million last fiscal year. The cash position increased to $4.2 billion as at January 31, 2011, compared to $3.4 billion as at January 31, 2010. The overall backlog reached $50.1 billion as at January 31, 2011, compared to $43.8 billion as at January 31, 2010.

"This past year has been challenging yet positive", said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. "Our efforts to lean out our cost structure combined with our continued focus on operational excellence have enabled us to increase our profitability despite this year's reduction in revenues. Both groups have also done an excellent job in managing their working capital which resulted in free cash flow generation of $605 million compared to a negative amount last year."

"In Aerospace, we seem to have turned the corner with business jet orders picking up substantially in the fourth quarter. To further strengthen our product leadership position, we continued to make progress on the development of new products within our business and commercial aircraft segments, both of which have healthy long-term growth prospects," said Mr. Beaudoin.

"Transportation delivered a strong performance in fiscal year 2011. We increased our EBIT margin for the sixth consecutive year, making steady progress towards our target EBIT margin of 8% by calendar year 2013*. Our highest level of new orders ever brought our backlog to a record level of $33.5 billion at the end of the year. This is a testimony to our strategy of developing innovative products that meet customer needs globally."

"We remain committed to investing in our future. Our markets are growing, our products are groundbreaking, and our technological leadership is capturing space in both emerging and mature markets. Overall, we have all the ingredients for profitable growth," concluded Mr. Beaudoin.

Bombardier Aerospace

At Bombardier Aerospace, revenues totalled $8.6 billion, compared to $9.4 billion last fiscal year, while EBIT reached $448 million, or 5.2% of revenues, compared to $473 million, or 5.1%, for the same period last year. The group is committed to improve its EBIT margin to 10% by calendar year 2013*.

Bombardier Aerospace's backlog amounted to $16.6 billion as at January 31, 2011, compared to $16.7 billion last year. The group recorded 201 net orders (267 gross orders and 66 cancellations) in fiscal year 2011, compared to 11 net orders (213 gross orders and 202 cancellations) last fiscal year. Deliveries totalled 244 aircraft, compared to 302 last fiscal year.

Bombardier Aerospace delivered 143 business aircraft in fiscal year 2011, compared to 176 aircraft last year. Bombardier Business Aircraft remained market leader with a market share of 32% based on revenues and 28% based on unit deliveries for the fiscal year ended January 31, 2011. Bombardier Commercial Aircraft delivered 97 units in fiscal year 2011, compared to 121 aircraft in the previous year, including nine CRJ1000 NextGen aircraft which entered into service in the fourth quarter with Air Nostrum and Brit Air.

Deliveries for the 11-month calendar year 2011 are expected to be approximately 150 business aircraft and approximately 90 commercial aircraft.* 

At the end of fiscal year 2011, Bombardier Aerospace received an order for 15 Q400 NextGen turboprops with options for an additional 15 aircraft from SpiceJet Ltd., establishing the Q400 NextGen airliner in the growing market of India. 

In early March 2011, NetJets Inc. placed a firm order for 30 Global 5000 Vision and Global Express XRS Vision aircraft and 20 Global 7000 and Global 8000 aircraft, with options for an additional 70 aircraft of the Global family. Based on list prices, the value of the firm order is $2.8 billion, which could increase to $6.7 billion if all options are exercised. This represents the largest order ever received in Bombardier Business Aircraft's history.

Bombardier Transportation

Bombardier Transportation's revenues totalled $9.1 billion, compared to $10 billion last fiscal year. EBIT amounted to $602 million, compared to $625 million last fiscal year. This represents an EBIT margin of 6.6%, versus 6.2% last fiscal year.

The group reported a high level of new order intake of $14.3 billion, compared to $9.6 billion last fiscal year, with a book-to-bill ratio of 1.6, compared to 1.0 last fiscal year. The order backlog stood at a record $33.5 billion as at January 31, 2011 compared to $27.1 billion last year.

Breakthrough orders were won across diverse geographies and product ranges; FLEXITY trams for Melbourne (Australia), Toronto (Canada) and Brussels (Belgium); metro cars for Montréal (Canada), Toronto and New Delhi (India); INNOVIA Monorail 300 systems for Riyadh (Kingdom of Saudi Arabia) and São Paulo (Brazil); single-deck regional trains for Deutsche Bahn (Germany) and double-deck electrical multiple units for Société Nationale des Chemins de fer Français (SNCF); TWINDEXX inter-city trains for Deutsche Bahn and the Swiss Federal Railways (SBB); additional high speed trains for China and V300ZEFIRO very high speed trains for Italy.

These orders demonstrate Bombardier Transportation's commitment to customer-driven innovative products and further expand its global reach while deepening its local roots in the high growth markets of China, India and Brazil. 

* As computed under IFRS – In the Management's Discussion and Analysis of the Bombardier 2010-11 annual report see the IFRS section in Overview and the Forward-looking statements section in Aerospace and Transportation. After giving effect to the approval of our proposed change of financial year-end from January 31 to December 31 by our Board of Directors in December 2011.

FINANCIAL HIGHLIGHTS

(In millions of U.S. dollars, except per share amounts, which are shown in dollars)

Fourth quarters ended January 31  
            2011               2010  
    BA   BT   Total     BA     BT   Total  
Revenues $ 2,874 $ 2,498 $ 5,372   $ 2,675   $ 2,677 $ 5,352  
EBITDA $ 247 $ 219 $ 466   $ 196   $ 221 $ 417  
Amortization   66   33   99     90     39   129  
EBIT $ 181 $ 186   367   $ 106   $ 182   288  
Financing income           (66 )             (9 )
Financing expense           67               69  
EBT           366               228  
Income taxes           41               49  
Net income         $ 325             $ 179  
Attributable to:                              
  Shareholders of Bombardier Inc.         $ 318             $ 177  
  Non-controlling interests         $ 7             $ 2  
   
EPS (In dollars)                              
  Basic and diluted         $ 0.18             $ 0.10  
Segmented free cash flow $ 770 $ 799 $ 1,569   $ 212   $ 372 $ 584  
Income taxes and
net financing
expense
        (107 )             (72 )
Free cash flow         $ 1,462             $ 512  
   
   
Fiscal years ended January 31  
            2011               2010  
    BA   BT   Total     BA     BT   Total  
Revenues $ 8,614 $ 9,098 $ 17,712   $ 9,357   $ 10,009 $ 19,366  
EBITDA $ 732 $ 728 $ 1,460   $ 844   $ 752 $ 1,596  
Amortization   284   126   410     371     127   498  
EBIT $ 448 $ 602   1,050   $ 473   $ 625   1,098  
Financing income           (137 )             (96 )
Financing expense           256               279  
EBT           931               915  
Income taxes           162               208  
Net income         $ 769             $ 707  
Attributable to:                              
  Shareholders of Bombardier Inc.         $ 755             $ 698  
  Non-controlling interests         $ 14             $ 9  
   
EPS (in dollars)                              
  Basic and diluted         $ 0.42             $ 0.39  
Segmented free cash flow $ 44 $ 744 $ 788   $ (267 ) $ 293 $ 26  
Income taxes and net financing expense           (183 )             (241 )
Free cash flow         $ 605             $ (215 )

BA: Bombardier Aerospace; BT: Bombardier Transportation

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

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $5.4 billion for the fourth quarter ended January 31, 2011, in line with the same period last fiscal year. For the year ended January 31, 2011, consolidated revenues reached $17.7 billion, compared to $19.4 billion last year.

For the fourth quarter ended January 31, 2011, EBIT amounted to $367 million, or 6.8% of revenues, compared to $288 million, or 5.4%, for the same period last year. For the year ended January 31, 2011, EBIT reached $1.1 billion, or 5.9% of revenues, compared to $1.1 billion, or 5.7%, for the previous year.

Net financing expense amounted to $1 million and $119 million respectively for the fourth quarter and fiscal year ended January 31, 2011, compared to $60 million and $183 million for the corresponding periods last fiscal year. The $59-million decrease for the fourth quarter is mainly due to a gain of $32 million on long-term debt repayments in connection with our liability management initiatives, and positive variations in the fair value of financial instruments. The $64-million decrease for the fiscal year is mainly due to a gain of $47 million on long-term debt repayments in connection with our two liability management initiatives.

The global effective income tax rate was 11.2% and 17.4% respectively for the fourth quarter and fiscal year ended January 31, 2011, compared to a statutory income tax rate of 30%. The lower global effective tax rates are mainly due to the positive impact of the recognition of tax benefits related to operating losses and temporary differences, partially offset by unrecognized tax benefits and write-downs of deferred tax assets.

As a result, net income amounted to $325 million, or diluted EPS $0.18, for the fourth quarter of fiscal year 2011, compared to $179 million, or diluted EPS of $0.10, for the same period the previous year. For the year ended January 31, 2011, net income was $769 million, or diluted EPS of $0.42, compared to $707 million, or diluted EPS of $0.39, last year.

For the three-month period ended January 31, 2011, free cash flow amounted to $1.5 billion, compared to $512 million for the corresponding period the previous year. For the year ended January 31, 2011, free cash flow amounted to $605 million, compared to a free cash flow usage of $215 million last fiscal year.

As at January 31, 2011, Bombardier's order backlog stood at $50.1 billion, compared to $43.8 billion as at January 31, 2010.

Bombardier Aerospace

  • Revenues of $2.9 billion for the fourth quarter; $8.6 billion for fiscal year 2011

  • EBITDA of $247 million for the fourth quarter; $732 million for fiscal year 2011

  • EBIT of $181 million, or 6.3% of revenues, for the fourth quarter; $448 million, or 5.2%, for fiscal year 2011

  • Free cash flow of $770 million for the fourth quarter; free cash flow of $44 million for fiscal year 2011

  • Order backlog of $16.6 billion as at January 31, 2011

  • Signature in March 2011 of a firm order of 50 Global family aircraft plus 70 options for a value of $6.7 billion based on list prices if all options are exercised

Bombardier Aerospace's revenues amounted to $2.9 billion for the three-month period ended January 31, 2011, compared to $2.7 billion for the same period the previous year. The increase is mainly due to higher deliveries of commercial aircraft and higher net selling prices for large business aircraft and for commercial aircraft, partially offset by lower deliveries and an unfavourable mix of business aircraft. Revenues amounted to $8.6 billion for the year ended January 31, 2011, compared to $9.4 billion for the previous year. The decrease is mainly due to lower deliveries of business and commercial aircraft, partially offset by higher net selling prices for large business aircraft and for commercial aircraft.

For the fourth quarter ended January 31, 2011, EBIT amounted to $181 million, or 6.3% of revenues, compared to $106 million, or 4%, for the same period the previous year. The 2.3 percentage-point increase is mainly due to higher net selling prices for large business aircraft and for commercial aircraft, higher margins relating to spare parts, and lower amortization expense; partially offset by lower liquidated damages from customers as a result of fewer business aircraft order cancellations, higher selling, general and administrative (SG&A) expenses, and a net negative variance on financial instruments.

For the year ended January 31, 2011, EBIT amounted to $448 million, or 5.2% of revenues, compared to $473 million, or 5.1%, for the previous year. The 0.1 percentage-point increase is mainly due to higher net selling prices for large business aircraft and for commercial aircraft, lower amortization expense, higher margins relating to spare parts, and lower write-downs of pre-owned business aircraft inventories; partially offset by higher cost of sales per unit, mainly due to price escalation of materials, lower liquidated damages from customers as a result of fewer business aircraft order cancellations, a net negative variance on financial instruments, and lower absorption of SG&A.

Free cash flow totalled $770 million for the fourth quarter ended January 31, 2011, compared to $212 million for the same period last fiscal year. The $558-million increase is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations and a higher EBITDA; partially offset by higher net additions to property, plant and equipment (PP&E) and intangible assets. For the year ended January 31, 2011, free cash flow amounted to $44 million, compared to a free cash flow usage of $267 million for the previous year. The $311-million increase is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations; partially offset by higher net additions to PP&E and intangible assets, (due to our significant investments in product development) as well as a lower EBITDA.

For the fourth quarter ended January 31, 2011, aircraft deliveries totalled 92, compared to 86 for the same period the previous year. The 92 deliveries consisted of 47 business aircraft, 44 commercial aircraft and 1 amphibious aircraft (49, 35 and 2 aircraft respectively for the corresponding period last fiscal year). During fiscal year 2011, Bombardier Aerospace delivered 244 aircraft, compared to 302 aircraft for fiscal year 2010. Aircraft delivered during fiscal year 2011 consisted of 143 business aircraft, 97 commercial aircraft and 4 amphibious aircraft (176, 121 and 5 aircraft respectively last fiscal year).

Deliveries for the 11-month calendar year 2011 are expected to be approximately 150 business aircraft and approximately 90 commercial aircraft.* 

Aerospace received 88 net orders during the quarter ended January 31, 2011, compared to 33 during the corresponding period the previous year. The 88 net orders consisted of 74 business aircraft, 13 commercial aircraft and 1 amphibious aircraft (7, 22 and 4 aircraft respectively for the corresponding period last fiscal year). During fiscal year 2011, Aerospace received 201 net orders compared to 11 for fiscal year 2010. Net orders during fiscal year 2011 consisted of 107 business aircraft, 93 commercial aircraft, and 1 amphibious aircraft (negative 85 business aircraft, 88 commercial aircraft, and 8 amphibious aircraft last fiscal year).

Aerospace's firm order backlog reached $16.6 billion as at January 31, 2011, a similar level compared to $16.7 billion as at January 31, 2010. This is mainly due to an order received for the CSeries family of aircraft, offset by a lower order backlog for regional jets, turboprops and business aircraft.

Bombardier Transportation

  • Revenues of $2.5 billion for the fourth quarter; $9.1 billion for fiscal year 2011

  • EBITDA of $219 million for the fourth quarter; $728 million for fiscal year 2011

  • EBIT of $186 million, or 7.4% of revenues, for the fourth quarter; $602 million, or 6.6%, for fiscal year 2011

  • Free cash flow of $799 million for the fourth quarter; $744 million for fiscal year 2011

  • New order intake totalling $3.4 billion (book-to-bill ratio of 1.4) for the fourth quarter; a record $14.3 billion (book-to-bill ratio of 1.6) for fiscal year 2011

  • Record order backlog of $33.5 billion as at January 31, 2011

Bombardier Transportation's revenues amounted to $2.5 billion for the three-month period ended January 31, 2011, compared to $2.7 billion for the same period last year. The decrease is mainly due to lower activities in rolling stock, mainly in Western Europe and in Asia due to the phasing out of major projects in several countries ahead of ramping-up of production of new contracts. It also reflects a negative currency impact. For the year ended January 31, 2011, revenues totalled $9.1 billion, compared to $10 billion for the previous year. The decrease is mainly due to decreased activity in locomotives in Europe, as a result of the low level of order intake in fiscal year 2010 due to the challenging economic environment in the freight business, to lower activities in intercity, high speed, and very high speed trains in Europe and Asia due to the phasing out of major projects in several countries ahead of ramping-up of production of new contracts for the fiscal year, and to lower activities in commuter and regional trains, light rail vehicles and metro cars in Western Europe due to the phasing out of major projects in several countries ahead of ramping-up of production of new contracts. The decrease was partially offset by higher activities in commuter and regional trains, light rail vehicles and metro cars in Asia, in locomotives in North America and in propulsion and controls in China. The decrease also reflects a negative currency impact.

For the fourth quarter ended January 31, 2011, EBIT totalled $186 million, or 7.4% of revenues, compared to $182 million, or 6.8%, for the same quarter the previous year. The 0.6 percentage-point increase is mainly due to better overall contract execution, lower SG&A expenses, a higher net gain related to foreign exchange fluctuations and certain financial instruments, and lower amortization expenses; partially offset by lower absorption of research and development (R&D) expenses. For the year ended January 31, 2011, EBIT totalled $602 million, or 6.6% of revenues, compared to $625 million, or 6.2%, for the previous year. The 0.4 percentage-point increase is mainly due to better overall contract execution, partially offset by higher R&D expenses related to our continuous upgrades in product offering and lower absorption of amortization expenses. The EBIT margins for the fourth quarter and the year ended January 31, 2011 were also impacted by provisions related to capacity adjustments mainly for the optimization of our footprint in Europe and a loss in connection with the flooding of our site in Bautzen, Germany.

Free cash flow for the quarter ended January 31, 2011 was $799 million, compared to $372 million for the same period last fiscal year. The $427-million increase is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations, partially offset by higher net additions to PP&E and intangible assets. For the year ended January 31, 2011, free cash flow was $744 million, compared to $293 million for the previous year. The $451-million increase is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations and lower net additions to PP&E and intangible assets, partially offset by a lower EBITDA.

The order intake for the fourth quarter ended January 31, 2011 was $3.4 billion (book-to-bill ratio of 1.4), compared to $1.8 billion (book-to-bill ratio of 0.7) for the same period last fiscal year. The increase is mainly due to higher order intake in rolling stock in North America and Europe and in system and signalling in North America; partially offset by lower order intake in services in Europe and a negative currency impact. During the year ended January 31, 2011, the order intake reached $14.3 billion (book-to-bill ratio of 1.6), compared to $9.6 billion (book-to-bill ratio of 1.0) last fiscal year. The 49% increase is mainly due to higher order intake in rolling stock and services in Europe and North America, and in system and signalling mainly due to an order received in Brazil; partially offset by lower order intake in rolling stock in Asia, where last year was exceptionally high due to a landmark order for very high speed trains in China and a negative currency impact. 

Bombardier Transportation's backlog totalled $33.5 billion as at January 31, 2011, compared to $27.1 billion as at January 31, 2010. The 24% increase is mainly due to order intake being significantly higher than revenues recorded.

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 May 31, 2011 to the shareholders of record at the close of business on May 13, 2011.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on May 13, 2011 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, 2010, on January 15, on February 15 and on March 15, 2011.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is payable on April 30, 2011 to the shareholders of record at the close of business on April 15, 2011.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on April 30, 2011 to the shareholders of record at the close of business on April 15, 2011.

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 January 31, 2011, were $17.7 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 @BombardierInc.

* As computed under IFRS – In the Management's Discussion and Analysis of the Bombardier 2010-11 annual report see the IFRS section in Overview and the Forward-looking statements section in Aerospace and Transportation. After giving effect to the approval of our proposed change of financial year-end from January 31 to December 31 by our Board of Directors in December 2011.

CRJ, CRJ1000, CSeries, FLEXITIY, Global, Global 5000, Global 7000, Global 8000, Global Express, Global Vision, INNOVIA, NextGen, Q400, TWINDEXX and XRS 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, targets, goals, priorities and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business conditions outlook, prospects and trends of the 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" or "continue", 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 Forward-looking statements sections in Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") in the Corporation's annual report for fiscal year 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, 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 Canadian 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 GAAP; 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
    or
    Bombardier Inc.
    Shirley Chenier
    Senior Director, Investor Relations
    514-861-9481