Bombardier Announces Major C Series Order and Reports Financial Results for the First Quarter of 2016
Bombardier has reported its financial results for the first quarter ended March 31, 2016.
"Our turnaround plan is gaining traction. We delivered on our commitments for the first quarter and we remain on track to achieve both our 2016 guidance and 2020 goals. Our decisive actions to improve our operations and business model across all our businesses are starting to pay off," said Alain Bellemare, president and chief executive officer, Bombardier Inc.
Transportation
|
Results of the quarter |
|
|
|
|||||
|
Three-month periods ended March 31 |
2016 |
|
2015 |
|
Variance |
|
||
|
Revenues |
$ |
1,880 |
|
$ |
2,041 |
|
(8 |
)% |
|
Order intake (in billions of dollars) |
$ |
1.2 |
|
$ |
1.2 |
|
- |
|
|
Book-to-bill ratio(1) |
|
0.7 |
|
|
0.6 |
|
0.1 |
|
|
EBIT |
$ |
23 |
|
$ |
118 |
|
(81 |
)% |
|
EBIT margin |
|
1.2 |
% |
|
5.8 |
% |
(460) bps |
|
|
EBIT before special items(2) |
|
115 |
|
$ |
118 |
|
(3 |
)% |
|
EBIT margin before special items(2) |
|
6.1 |
% |
|
5.8 |
% |
30 bps |
|
|
EBITDA before special items(2) |
$ |
139 |
|
$ |
144 |
|
(3 |
)% |
|
EBITDA margin before special items(2) |
|
7.4 |
% |
|
7.1 |
% |
30 bps |
|
|
Net additions to PP&E and intangible assets |
$ |
23 |
|
$ |
12 |
|
92 |
% |
|
As at |
|
March 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
Order backlog (in billions of dollars) |
$ |
30.4 |
|
$ |
30.4 |
|
- |
|
|
bps: |
basis points |
|
(1) |
Ratio of new orders over revenues. |
|
(2) |
See Caution regarding non-GAAP measures at the end of this press release. |
- EBIT margin before special items increased to 6.1% in the first quarter. From an operational perspective, continued improvements in working capital management are positively impacting free cash flow generation, and delaying recognition of certain costs and therefore delaying revenue recognition under long-term contract accounting. Special items represent restructuring charges of $87 million related to the workforce optimization announced in February 2016 and a foreign exchange loss of $5 million related to the reorganization of Transportation under one holding entity necessary to facilitate the placement of a minority stake in Transportation.
- The Corporation closed the sale to the CDPQ of a $1.5-billion investment in convertible shares representing a 30% stake in Bombardier Transportation (Investment) UK LTD (BT Holdco), which following the completion of a corporate reorganization, owns essentially all of the assets and liabilities of Bombardier's Transportation business segment. BT Holdco will continue to be controlled by Bombardier Inc. and consolidated in its results.
- On February 12, 2016, as part of TransEd Partners consortium, Bombardier signed a contract for the Valley Line LRT in Edmonton, Canada. The Corporation's scope is valued at $280 million.
To view the full report visit http://www.bombardier.com/en/media/newsList/
