Bombardier 2017 Financial Results

Please note the view expressed in this post are those of the member posting and not necessarily of the BBGA

Please see below Summary of Bombardier’s FInancial Results for 2017, prepared by Leo Knaapen.

The full Bombardier News Release in English can be found here BBD 2017 Financial Results. News Release

Bombardier Inc Financial Highlights (USD)

  • Consolidated full-year EBIT before special items(1) increased 57% year-over-year to $672 million;
  • Margin(2) guidance exceeded across all business segments; full-year EBIT margins above 8% at Transportation, Business Aircraft and Aerostructures;
  • Full year free cash flow usage(1) better than guidance by over $200 million; and
  • Strong momentum continues as Company approaches midpoint in turnaround plan.

Stated Alain Bellemare, President and Chief Executive Officer, Bombardier Inc.:  “Bombardier closed out the second full year of its five-year turnaround plan with very strong performance,” he said.  “Because of this solid performance, we begin 2018 with great momentum.  Our operational transformation is in full motion; our growth programs — including the Global 7000 — are on track and we have a clear line of sight to our 2020 objectives.

“2018 will be a pivotal year for Bombardier,” he continued. “We are moving out of our investment cycle and into a strong growth cycle.  Our focus is on flawless execution:  bringing the Global 7000 into service; delivering on our major rail projects; and closing the Airbus partnership following regulatory approvals later this year.”

An Aerospace Focus

Colleagues, from an aerospace perspective, and likely of significant interest to you and your colleagues, is the 2017 performance of Bombardier’s three aerospace units – Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services.  Here is a brief summary of each business unit:

  1. Bombardier Business Aircraft
  • 2017 financial performance met or exceeded guidance;
  • A total of 140 Learjet, Challenger and Global business jet deliveries;
  • Revenues were $5 billion, with EBIT margins before special items of 8.4%; and
  • The all-new Global 7000 continues to perform extremely well and exhibit a high level of reliability in the flight test and certification program, with more than 15,000 flight test hours to date.  Multiple aircraft are in final assembly and the Global 7000 is on track to enter service in the second half of 2018.
  1. Bombardier Commercial Aircraft
  • 2017 financial performance was marked by the continued production ramp-up of the all-new C Series aircraft program.
  • A total of 73 Q400, CRJ and C Series airliner deliveries – including first C Series deliveries to Asian launch customer Korean Air;
  • While revenues reached $2.4 billion, in line with our guidance, the EBIT loss before special items at $377 million compared favorably relative to expectations; and
  • We are moving ahead and making progress obtaining regulatory approvals for the announced partnership with Airbus for the C Series aircraft.
  1. Bombardier Aerostructures and Engineering Services
  • 2017 financial performance in line with expectations;
  • Revenues were $1.6 billion, with EBIT margins before special items of 10.0%; and
  • Recently winning a new contract reinforces our long term strategy to grow capabilities in the engine nacelles market, and to focus on delivering innovative, high value products and services.