Bombardier

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Bombardier / Bombardier Announces Financial Results for the First Quarter Ended April 30, 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

MONTREAL, QUEBEC--(Marketwire - June 2, 2010) - Bombardier Inc. (TSX: BBD.A
<http://www.marketwire.com/mw/stock.jsp?Ticker=TSX:BBD-A>)(TSX: BBD.B
<http://www.marketwire.com/mw/stock.jsp?Ticker=TSX:BBD-B>)

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

--  Consolidated revenues of $4.2 billion, compared to $4.5 billion last fiscal
year

--  EBIT of $224 million, or 5.3% of revenues, compared to $235 million, or
5.3%, last fiscal year

--  Net income of $153 million, or EPS of $0.08, compared to $158 million, or
$0.09 per share, last fiscal year

--  Free cash flow usage of $217 million, compared to a usage of $817 million
last fiscal year

--  Strong cash position of $3.5 billion

--  Backlog of $44.4 billion

--  Purchase agreement for 40 CS300 aircraft with Republic Airways Holdings Inc.

--  Framework agreement of up to $11 billion for 860 double-deck trains with the
French railways SNCF

Bombardier today released its financial results for the first quarter ended
April 30, 2010. Revenues reached $4.2 billion, compared to $4.5 billion last
fiscal year, while earnings before financing income, financing expense and
income taxes (EBIT) totalled $224 million, compared to $235 million last fiscal
year. The EBIT margin stood at 5.3% for the first quarters ended April 30, 2010
and 2009.

Net income reached $153 million, compared to $158 million for the same period
last fiscal year. Diluted earnings per share (EPS) were $0.08 for the first
quarter of fiscal year 2011, compared to $0.09 for the same period last fiscal
year. The overall backlog totalled $44.4 billion, compared to $43.8 billion as
at January 31, 2010.

Free cash flow (cash flows from operating activities less net additions to
property, plant and equipment and intangible assets) usage totalled $217
million, compared to a usage of $817 million for the same period last fiscal
year. The cash position stands at $3.5 billion as at April 30, 2010, compared to
$3.4 billion as at January 31, 2010.

"Again this quarter, both groups performed well given the current economic
context," said Pierre Beaudoin, President and Chief Executing Officer,
Bombardier Inc. "Key indicators in the business jet market are showing signs of
stabilization and our level of business aircraft cancellations has substantially
decreased. Commercial aircraft has benefited from a breakthrough order in the
United States for the CSeries aircraft and Bombardier Aerospace's overall
book-to-bill ratio stands at 1.2 for the quarter, compared to 0.1 last year."

"Bombardier Transportation's markets have been generally resilient to the
economic downturn. The group had a good level of order intake reaching $2.9
billion during the first quarter, compared to $1.2 billion for the same period
last year."

"While economic conditions are improving, the recent credit concerns affecting
some countries in Europe are creating uncertainty. We continue to monitor the
situation and to manage our activities with rigour and discipline," concluded
Mr. Beaudoin.

Bombardier Aerospace

At Bombardier Aerospace, revenues totalled $1.9 billion, compared to $2.2
billion for the first quarter last fiscal year, while EBIT reached $89 million,
compared to $110 million. This translated into an EBIT margin of 4.6% for the
first quarter ended April 30, 2010 compared to 5% last fiscal year. Free cash
flow usage of $205 million compares to a usage of $530 million for the same
period last fiscal year. Overall, Bombardier Aerospace delivered 53 aircraft
this quarter, compared to 75 last year, in line with our expectations. The group
received 61 net orders compared to nine for the same period last fiscal year,
and its backlog reached $17.3 billion compared to $16.7 billion as at January
31, 2010.

Although the aerospace industry continues to experience challenging conditions,
the business aircraft market is seeing stabilization in key indicators such as
increased fleet activity and a decrease in the number of pre-owned aircraft. The
last General Aviation Manufacturers Association (GAMA) shipment report shows
Bombardier Aerospace continued to be the market leader in both revenues and
units delivered during the first three months of calendar year 2010.

For the commercial aircraft market, although airlines are focused on matching
capacity to demand and controlling costs, during the quarter, Bombardier
Aerospace received an order for 40 CS300 mainline jets with options for 40 more
from Republic Air Holdings Inc. The group also received an order for 15 Q400
NextGen turboprops with options for 15 others from Jazz Air LP, as well as a
firm order for three CRJ900 NextGen regional jets with options for an additional
six from Pluna Lineas Aereas Uruguayas S.A.

Bombardier Transportation

For the first quarter of fiscal year 2011, Bombardier Transportation's revenues
totalled $2.3 billion, essentially the same level as last year. EBIT reached
$135 million, or 5.8% of revenues, for the first quarter ended April 30, 2010,
compared to $125 million, or 5.6%, for the same period last fiscal year. Free
cash flow usage of $27 million compares to a free cash flow usage of $260
million last fiscal year. The order backlog stood at $27.1 billion as at April
30, 2010, and January 31, 2010. Bombardier Transportation reported new orders
worth $2.9 billion for the first quarter, representing a book-to-bill ratio of
1.2 for the quarter, compared to $1.2 billion (book-to-bill ratio of 0.5) for
the same period last fiscal year.

During the first quarter, Bombardier Transportation received two firm orders for
a total of 129 trains, valued at $1.6 billion, under the framework agreement of
up to $11 billion signed with the Societe Nationale des Chemins de fer Francais
(SNCF) for the design and manufacturing of 860 double-deck trains. Bombardier
Transportation also received an order for 48 TALENT 2 trains from Deutsche Bahn,
for a value of approximately $272 million, as well as an order from the
Hungarian State Railway company, MAV, for 25 TRAXX locomotives, valued at $112
million.

Subsequent to the end of the first quarter, Bombardier Transportation was
awarded an order for 59 double-deck trains from the Swiss Federal Railways,
valued at $1.6 billion, subject to a 20-day appeal period ending on June
4, 2010. The Toronto Transit Commission also exercised options for 186
additional subway cars for a total value of $378 million.

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

For the three-month periods ended April 30

                                          2010                          2009
--------------------------------------------------------------------------------
                        BA        BT     Total        BA        BT     Total
--------------------------------------------------------------------------------
Revenues           $ 1,935   $ 2,311   $ 4,246   $ 2,219   $ 2,252   $ 4,471
--------------------------------------------------------------------------------
EBITDA             $   164   $   167   $   331   $   204   $   151   $   355

Amortization            75        32       107        94        26       120
--------------------------------------------------------------------------------
EBIT               $    89   $   135       224   $   110   $   125       235

Financing income                           (40 )                         (35 )

Financing expense                           68                            68
--------------------------------------------------------------------------------
EBT                                        196                           202

Income taxes                                43                            44
--------------------------------------------------------------------------------
Net income                             $   153                       $   158

Attributable to:

  Shareholders of
  Bombardier Inc.                      $   152                       $   156

  Non-controlling
  interests                            $     1                       $     2
                            ---     ---
EPS (In dollars):

  Basic and
  Diluted                              $  0.08                       $  0.09

Segmented free
cash flow          $  (205 ) $   (27 ) $  (232 ) $  (530 ) $  (260 ) $  (790 )

Income taxes and
net financing
expense                                     15                           (27 )
--------------------------------------------------------------------------------
Free cash flow                         $  (217 )                     $  (817 )

BA: Bombardier Aerospace; BT: Bombardier Transportation


FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2010

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $4.2 billion for the first quarter ended April
30, 2010, compared to $4.5 billion for the same period last year.

For the first quarter ended April 30, 2010, EBIT reached $224 million, or 5.3%
of revenues, compared to $235 million, or 5.3%, for the same period the previous
year.

Net financing expense amounted to $28 million for the first quarter of fiscal
year 2011 compared to $33 million for the corresponding period last fiscal year.
The $5-million decrease for the three- month period is mainly due to a gain of
$15 million on long-term debt repayments in connection with our refinancing
plan, partially offset by lower interest income on cash and cash equivalents,
consistent with lower variable interest rates.

The effective income tax rate was 21.9% for the first quarter of fiscal year
2011, compared to the statutory income tax rate of 30%. The lower effective tax
rate is mainly due to the positive impact of the recognition of tax benefits
related to operating losses and temporary differences, partially offset by
permanent differences.

As a result, net income amounted to $153 million, or an EPS of $0.08, for the
first quarter of fiscal year 2011, compared to $158 million, or $0.09 per share,
for the same period the previous year.

For the three-month period ended April 30, 2010, free cash flow usage totalled
$217 million, compared to a usage of $817 million for the corresponding period
the previous year.

As at April 30, 2010, Bombardier's order backlog stood at $44.4 billion,
compared to $43.8 billion as at January 31, 2010.

Bombardier Aerospace

--  Revenues of $1.9 billion
--  EBITDA of $164 million, or 8.5% of revenues
--  EBIT of $89 million, or 4.6% of revenues
--  Free cash flow usage of $205 million
--  Order backlog of $17.3 billion

Bombardier Aerospace's revenues amounted to $1.9 billion for the three-month
period ended April 30, 2010, compared to $2.2 billion for the same period the
previous year. This decrease is mainly due to a decrease in manufacturing
revenues, mainly attributable to lower deliveries of commercial aircraft
partially offset by higher selling prices, as well as to lower deliveries and
selling prices of business aircraft partially offset by a favourable mix.

For the first quarter ended April 30, 2010, EBIT reached $89 million, or 4.6% of
revenues, compared to $110 million, or 5%, for the same period the previous
year. The 0.4 percentage-point decrease is mainly due to higher cost of sales
per unit, mainly due to price escalations of materials, lower selling prices for
business aircraft, a net negative variance on financial instruments carried at
fair value, and lower absorption of selling, general and administrative
expenses. This decrease was partially offset by a favourable mix between
business and commercial aircraft deliveries, lower write-downs of pre-owned
business aircraft inventories, lower amortization expense, mainly due to the
program tooling on some aircraft models being fully amortized, and higher
selling prices for commercial aircraft.

Free cash flow usage totalled $205 million for the first quarter ended April
30, 2010, compared to a usage of $530 million for the same period last fiscal
year. This $325-million improvement 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 property, plant and
equipment and intangible assets and a lower earnings before financing income,
financing expense, income taxes and depreciation and amortization (EBITDA).

For the quarter ended April 30, 2010, aircraft deliveries totalled 53 units,
compared to 75 for the same period the previous year. The 53 deliveries
consisted of 36 business aircraft, 16 commercial aircraft and one amphibious
aircraft (43 business, 31 commercial and one amphibious aircraft for the
corresponding period last fiscal year).

Bombardier Aerospace received 61 net orders during the quarter ended April
30, 2010, compared to nine during the corresponding period the previous year.
The 61 net orders resulted from six net orders of business aircraft (22 gross
orders and 16 cancellations) and from 55 net orders from commercial aircraft (41
negative net orders for business aircraft, resulting from 20 gross orders and
61 cancellations, and 50 net orders from commercial aircraft for the
corresponding period last fiscal year).

The most significant orders received during the first quarter ended April
30, 2010 were an order for 40 CS300 aircraft from Republic Airways Holdings
Inc., valued at $3.1 billion based on the list price, with options for an
additional 40 CS300 aircraft, as well as an order for 15 Q400 NextGen turboprop
from Jazz Air LP, valued at $454 million based on the list price, with options
for an additional 15 Q400 NextGen aircraft.

Aerospace's firm order backlog reached $17.3 billion as at April 30, 2010,
compared to $16.7 billion as at January 31, 2010. The increase is mainly due to
the order received for the CSeries family of aircraft, partially offset by a
lower order backlog in business aircraft.

Bombardier Transportation

--  Revenues of $2.3 billion
--  EBITDA of $167 million, or 7.2% of revenues
--  EBIT of $135 million, or 5.8% of revenues
--  Free cash flow usage of $27 million
--  New order intake totalling $2.9 billion (book-to-bill ratio of 1.2)
--  Order backlog of $27.1 billion

Bombardier Transportation's revenues amounted to $2.3 billion for the
three-month period ended April 30, 2010, essentially the same level as the
corresponding period last year. The increase of $59 million is mainly due to a
positive currency impact and higher activities in locomotives and mass transit
in North America, partially offset by lower activities in locomotives in Europe.

For the first quarter ended April 30, 2010, EBIT totalled $135 million, or 5.8%
of revenues, compared to $125 million, or 5.6%, for the same quarter the
previous year. The 0.2 percentage-point increase is mainly due to better overall
contract execution.

Free cash flow usage for the quarter ended April 30, 2010 totalled $27 million,
compared to a usage of $260 million for the same period last fiscal year. The
$233-million improvement is mainly due to a positive period-over-period
variation in net change in non-cash balances related to operations, a higher
EBITDA, and lower net additions to property, plant and equipment and intangible
assets.

The order intake for the first quarter ended April 30, 2010 was $2.9 billion,
reflecting a book-to-bill ratio of 1.2, compared to $1.2 billion (book-to-bill
ratio of 0.5) for the same period last fiscal year. This increase is mainly due
to a higher order intake in rolling stock in Europe.

Bombardier Transportation's backlog stood at $27.1 billion as at April 30, 2010
and January 31, 2010. The stable level of order backlog reflects order intake
higher than revenues recorded, offset by the weakening of foreign currencies as
at April 30, 2010 compared to January 31, 2010, mainly the euro and pound
sterling compared to the U.S. dollar.

Bombardier Transportation received the following major orders during the first
quarter ended April 30, 2010: two firm orders from the SNCF for 129 regional
double-deck trains valued at $1.6 billion, and an order for 48 TALENT 2 trains
from Deutsche Bahn (DB) AG amounting to $272 million.

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
July 31, 2010 to the shareholders of record at the close of business on July
16, 2010.

Holders of Class B Shares (Subordinate Voting) of record at the close of
business on July 16, 2010 also have a right to a priority dividend of
$0.000390625 Cdn.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares

A monthly dividend of $0.04688 Cdn per share on Series 2 Preferred Shares has
been paid on April 15, and on May 15, 2010.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is
payable on July 31, 2010 to the shareholders of record at the close of business
on July 16, 2010.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is
payable on July 31, 2010 to the shareholders of record at the close of business
on July 16, 2010.

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 Jan. 31, 2010, were $19.4 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
<http://www.bombardier.com>.

CRJ900, CSeries, CS300, NextGen, Q400, TALENT and TRAXX are trademarks of
Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the Interim consolidated financial
statements are available at www.bombardier.com <http://www.bombardier.com>.

FORWARD-LOOKING STATEMENT

This press release includes forward-looking statements, which may involve, but
are not limited to, statements with respect to the 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;
competitive position; and 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 made 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 2010.

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 in the Corporation's
annual report for fiscal year 2010. 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 this MD&A and are subject to change after such
date. Unless otherwise required by applicable securities laws, the Corporation
expressly disclaims any intention, and assumes 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.



Contacts:
Bombardier Inc.
Isabelle Rondeau
Director, Communications
514-861-9481

Bombardier Inc.
Shirley Chenier
Senior Director, Investor Relations
514-861-9481
www.bombardier.com <http://www.bombardier.com>



[HUG#1421048]



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Bombardier
800 Rene-Levesque Blvd.  West Montreal, QC Canada


Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;