Bombardier

IndustrialsIndustrial Goods & ServicesAerospace & Defense
    
    
      Economy, Business And Finance
        Company InformationQuarterly Or Semiannual Financial Statement
    

    
Bombardier / Bombardier Announces Financial Results for the Second Quarter Ended July 31, 2010  processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

MONTREAL, QUEBEC--(Marketwire - September 1, 2010) - Bombardier Inc. (TSX:
BBD.A) (TSX: BBD.B)


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

--  Consolidated revenues of $4.1 billion, compared to $4.9 billion last
   fiscal year
--  EBITDA of $331 million, compared to $436 million last fiscal year
--  EBIT of $231 million, or 5.7% of revenues, compared to $313 million, or
   6.3%, last fiscal year
--  Net income of $148 million, compared to $202 million last fiscal year
--  Earnings per share of $0.08, compared to $0.11 last fiscal year
--  Free cash flow usage of $508 million, compared to a free cash flow of
   $18 million last fiscal year
--  Good cash position of $2.8 billion
--  Strong backlog of $47.4 billion

Bombardier today reported financial results for the second quarter of fiscal
year 2011. Revenues totalled $4.1 billion, compared to $4.9 billion for the
corresponding period last fiscal year. Earnings before financing income,
financing expense and income taxes (EBIT) totalled $231 million, versus $313
million last fiscal year. EBIT margin was 5.7% compared to last fiscal year's
6.3%.

Net income for the second quarter ended July 31, 2010 amounted to $148 million,
compared to $202 million for the same period last fiscal year. Diluted earnings
per share (EPS) was $0.08, compared to $0.11 last fiscal year. Free cash flow
(cash flows from operating activities less net additions to property, plant and
equipment and intangible assets) usage totalled $508 million for the second
quarter ended July 31, 2010, compared to a free cash flow of $18 million last
fiscal year. The cash position amounted to $2.8 billion as at July 31, 2010,
compared to $3.4 billion as at January 31, 2010. The overall backlog stands at
$47.4 billion, as at July 31, 2010, compared to $43.8 billion as at January
31, 2010.

"During this quarter, Transportation has shown a strong level of order activity,
benefitting from its wide portfolio of products and its enviable global market
position. The group improved its profitability while signing $4.3 billion of new
orders for a book-to-bill ratio of 2.0, bringing its order backlog to $30.3
billion," said Pierre Beaudoin, President and Chief Executive Officer,
Bombardier Inc.

"The uncertain economic environment continues to be reflected in Aerospace's
financial results. However, the group is starting to see signs of recovery as
shown by the significant reduction in business aircraft order cancellations."

"Overall, our long-term prospects are strong, our new product developments on
track and we remain focused on managing our cost structure and improving our
cash flow generation," concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues totalled $2 billion, compared to $2.4 billion
last fiscal year. EBIT totalled $91 million translating into an EBIT margin of
4.6% for the second quarter ended July 31, 2010, compared to $154 million, or
6.4%, last fiscal year. Free cash flow usage totalled $287 million compared to a
usage of $10 million for the same period last fiscal year. Bombardier
Aerospace's backlog totalled $17.1 billion as at July 31, 2010, compared to
$16.7 billion as at January 31, 2010.

According to the latest General Aviation Manufacturers Association (GAMA)
report, Bombardier Aerospace was again the leader in business aircraft both in
terms of revenues and units delivered. In the commercial aircraft division,
Bombardier's orders during the second quarter of fiscal year 2011 included an
order for eight CRJ900 NextGen aircraft from Deutsche Lufthansa AG of Germany
for a value of $317 million, based on the list price, and an order for seven
Q400 NextGen turboprops from Qantas Airlines valued at $218 million, based on
the list price.

Bombardier Transportation

Bombardier Transportation revenues totalled $2.1 billion for the second quarter
ended July 31, 2010, compared to $2.5 billion for the same period last fiscal
year. EBIT was $140 million, compared to $159 million last fiscal year, while
EBIT margin reached 6.6% versus 6.2% last fiscal year. Free cash flow usage
amounted to $132 million for the second quarter ended July 31, 2010, compared to
a free cash flow of $149 million for the same period last fiscal year. The order
backlog totalled $30.3 billion as at July 31, 2010, compared to $27.1 billion as
at January 31, 2010.

During the second quarter, Bombardier Transportation reported $4.3 billion of
new orders compared to $3 billion last fiscal year, leading to a book-to-bill
ratio of 2.0, compared to 1.2 for the same period last fiscal year. Originating
from various regions of the world, the orders included a contract to supply 59
TWINDEXX double-deck trains to SBB, the Swiss Federal Railways, for a total
value of $1.6 billion. This constitutes the largest vehicle order in SBB's
history.

Bombardier Transportation also concluded an agreement with Metrolinx of Toronto
to supply 182 FLEXITY trams for a value of $745 million and signed its first
contract in the Kingdom of Saudi Arabia for the supply, installation, operation
and maintenance of a 3.6 km INNOVIA Monorail 300 system for a value of $241
million.

Subsequent to quarter-end, our Chinese joint venture Sifang (Qingdao)
Transportation Ltd. was awarded an order for 40 CRH1 high speed trainsets from
the Chinese Ministry of Railways (MOR) for a value of $761 million. Bombardier
Transportation's share represents $373 million.

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


                                                                   Three-month
                                                                 periods ended
                                                                       July 31
--------------------------------------------------------------------------------
                                           2010                           2009
--------------------------------------------------------------------------------
                         BA        BT     Total        BA        BT      Total
--------------------------------------------------------------------------------
Revenues            $ 1,962   $ 2,117   $ 4,079   $ 2,399   $ 2,547   $  4,946
--------------------------------------------------------------------------------
EBITDA              $   161   $   170   $   331   $   247   $   189   $    436

Amortization             70        30       100        93        30        123
--------------------------------------------------------------------------------
EBIT                $    91   $   140       231   $   154   $   159        313

Financing income                            (16 )                          (23 )

Financing expense                            60                             72
--------------------------------------------------------------------------------
EBT                                         187                            264

Income taxes                                 39                             62
--------------------------------------------------------------------------------
Net income                              $   148                       $    202

Attributable to:

  Shareholders of
  Bombardier Inc.                       $   144                       $    198

  Non-controlling
  interests                             $     4                       $      4



EPS (In dollars)

  Basic and diluted                     $  0.08                       $   0.11

Segmented free cash
flow                $  (287 ) $  (132 ) $  (419 ) $   (10 ) $   149   $    139

Income taxes and
net financing
expense                                     (89 )                         (121 )
--------------------------------------------------------------------------------
Free cash flow                          $  (508 )                     $     18




--------------------------------------------------------------------------------
                                                                     Six-month
                                                                       periods

                                                                 ended July 31
--------------------------------------------------------------------------------
                                           2010                           2009
--------------------------------------------------------------------------------
                         BA        BT     Total        BA        BT      Total
--------------------------------------------------------------------------------
Revenues            $ 3,897   $ 4,428   $ 8,325   $ 4,618   $ 4,799   $  9,417
--------------------------------------------------------------------------------
EBITDA              $   325   $   337   $   662   $   451   $   340   $    791

Amortization            145        62       207       187        56        243
--------------------------------------------------------------------------------
EBIT                $   180   $   275       455   $   264   $   284        548

Financing income                            (53 )                          (58 )

Financing expense                           125                            140
--------------------------------------------------------------------------------
EBT                                         383                            466

Income taxes                                 82                            106
--------------------------------------------------------------------------------
Net income                              $   301                       $    360

Attributable to:

  Shareholders of
  Bombardier Inc.                       $   296                       $    354

  Non-controlling
  interests                             $     5                       $      6



EPS (in dollars)

  Basic and diluted                     $  0.16                       $   0.20

Segmented free cash
flow                $  (492 ) $  (159 ) $  (651 ) $  (540 ) $  (111 ) $   (651 )

Income taxes and
net financing
expense                                     (74 )                         (148 )
--------------------------------------------------------------------------------
Free cash flow                          $  (725 )                     $   (799 )


BA: Bombardier Aerospace; BT: Bombardier Transportation

Financial Results for the Second Quarter Ended July 31, 2010

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $4.1 billion for the second quarter ended July
31, 2010, compared to $ 4.9 billion for the same period last year. For the
six-month period ended July 31, 2010, consolidated revenues amounted to $8.3
billion, compared to $9.4 billion for the same period last year.

For the second quarter ended July 31, 2010, EBIT totalled $231 million, or 5.7%
of revenues, compared to an EBIT of $313 million, or 6.3% of revenues, for the
same period the previous year. For the semester ended July 31, 2010, EBIT
amounted to $455 million, or 5.5% of revenues, compared to an EBIT of $548
million, or 5.8% of revenues, for the same period last fiscal year.

Net financing expense amounted to $44 million for the second quarter of fiscal
year 2011, compared to $49 million for the corresponding period last year. The
$5-million decrease is mainly due to lower interest expense on long-term debt,
consistent with lower variable interest rates. For the six-month period ended
July 31, 2010, net financing expense amounted to $72 million, compared to $82
million for the same period last year. The $10-million decrease 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 20.9% and 21.4% respectively for the three-
and six-month periods ending July 31, 2010, compared to the statutory income tax
rate of 30%. The lower 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 permanent differences.

As a result, net income amounted to $148 million, or $0.08 per share, for the
second quarter of fiscal year 2011, compared to $202 million, or $0.11 per
share, for the same period the previous year. For the first semester of fiscal
year 2011, net income was $301 million, or $0.16 per share, compared to $360
million, or $0.20 per share, for the same period the previous year.

For the three-month period ended July 31, 2010, free cash flow usage totalled
$508 million, compared to a free cash flow of $18 million for the corresponding
period the previous year. For the semester ended July 31, 2010, free cash flow
usage totalled $725 million, compared to a usage of $799 million for the
corresponding period the previous year.

As at July 31, 2010, Bombardier's order backlog stood at $47.4 billion, compared
to $43.8 billion as at January 31, 2010.

Bombardier Aerospace

--  Revenues of $2 billion
--  EBITDA of $161 million, or 8.2% of revenues
--  EBIT of $91 million, or 4.6% of revenues
--  Free cash flow usage of $287 million
--  46 aircraft deliveries
--  29 aircraft net orders
--  Order backlog of $17.1 billion

Bombardier Aerospace's revenues amounted to $2 billion for the three-month
period ended July 31, 2010, compared to $2.4 billion for the same period the
previous year. The decrease is mainly due to a decrease in manufacturing
revenues due to lower deliveries of business aircraft, partially offset by a
favourable mix and higher net selling prices for medium and large business
aircraft and lower deliveries of commercial aircraft, partially offset by higher
net selling prices.

For the second quarter ended July 31, 2010, EBIT totalled $91 million, or 4.6%
of revenues, compared to $154 million, or 6.4% of revenues, for the same period
the previous year. The 1.8 percentage-point decrease is mainly due to higher
cost of sales per unit, mainly due to price escalations of materials, lower
liquidated damages from customers as a result of fewer business aircraft order
cancellations, a net negative variance on financial instruments carried at fair
value and lower absorption of selling, general and administrative (SG&A)
expenses; partially offset by higher net selling prices for medium and large
business aircraft and for commercial aircraft, lower amortization expense,
mainly due to the program tooling on some aircraft models being fully amortized,
and lower write-downs of pre-owned business aircraft inventories.

Free cash flow usage totalled $287 million for the second quarter ended July
31, 2010, compared to free cash flow usage of $10 million for the same period
last fiscal year. The $277-million decrease is mainly due to higher net
additions to property, plant and equipment (PP&E) and intangible assets, a lower
EBITDA, and a negative period-over-period variation in net change in non-cash
balances related to operations.

For the quarter ended July 31, 2010, aircraft deliveries totalled 46, compared
to 80 for the same period the previous year. The 46 deliveries consisted of 27
business, 18 commercial and one amphibious aircraft (51 business and 28
commercial and one amphibious aircraft for the corresponding period last fiscal
year).

Bombardier Aerospace recorded 29 net orders during the quarter ended July
31, 2010, compared to 38 negative net orders during the corresponding period the
previous year. The 29 net orders consisted in 14 net orders for business
aircraft (26 new orders with 12 cancellations), 15 new orders for commercial
aircraft (for the corresponding period last fiscal year: 27 new orders and 80
cancellations of business aircraft and 30 new orders and 15 cancellations of
commercial aircraft).

Bombardier Aerospace's firm order backlog stood at $17.1 billion as at July
31, 2010, compared to $16.7 billion as at January 31, 2010. The increase in the
order backlog is mainly attributable to an order received for the CSeries family
of aircraft, partially offset by a lower order backlog in business aircraft.

Bombardier Transportation

--  Revenues of $2.1 billion
--  EBITDA of $170 million, or 8% of revenues
--  EBIT of $140 million, or 6.6% of revenues
--  Free cash flow usage of $132 million
--  Order intake totalling $4.3 billion (book-to-bill ratio of 2.0)
--  Order backlog of $30.3 billion

Bombardier Transportation's revenues amounted to $2.1 billion for the
three-month period ended July 31, 2010, compared to $2.5 billion for the same
period last year. The decrease is mainly due to rolling stock's lower activities
in locomotives in Europe, as a result of the low level of order intake in fiscal
year 2010, as well as in intercity, high speed and very high speed trains. The
decrease also reflects a negative currency impact.

For the second quarter ended July 31, 2010, EBIT totalled $140 million, or 6.6%
of revenues, compared to an EBIT of $159 million, or 6.2% of revenues, for the
same quarter the previous year. The 0.4 percentage-point increase is mainly due
to better overall contract execution, partially offset by lower absorption of
research and development, SG&A and amortization expenses as a result of lower
revenues.

Free cash flow usage was $132 million for the quarter ended July 31, 2010,
compared to a free cash flow of $149 million for the same period last fiscal
year. The $281-million decrease is mainly due to a negative period-over-period
variation in net change in non-cash balances related to operations.

The order intake for the second quarter ended July 31, 2010 was $4.3 billion,
compared to $3 billion for the same period last fiscal year, for a book-to-bill
ratio of 2.0, compared to 1.2 for the corresponding period last fiscal year.

Bombardier Transportation's backlog stood at $30.3 billion as at July 31, 2010,
compared to $27.1 billion as at January 31, 2010. The 12% 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
October 31, 2010 to the shareholders of record at the close of business on
October 15, 2010.

Holders of Class B Shares (Subordinate Voting) of record at the close of
business on October 15, 2010 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 $0.04688 Cdn per share on Series 2 Preferred Shares has
been paid on June 15, of $0.05188 Cdn per share on July 15, and of $0.05396 Cdn
per share on August 15, 2010.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is
payable on October 31, 2010 to the shareholders of record at the close of
business on October 15, 2010.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is
payable on October 31, 2010 to the shareholders of record at the close of
business on October 15, 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.

CRJ, CRJ900, CSeries, FLEXITY, INNOVIA, NextGen, TWINDEXX, and Q400 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.

FORWARD-LOOKING STATEMENT

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;
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 press release 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
www.bombardier.com

Bombardier Inc.
Shirley Chenier
Senior Director, Investor Relations
514-861-9481



[HUG#1441971]



 --- End of Message --- 

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


Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;





This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Bombardier via Thomson Reuters ONE