Bombardier Announces Financial Results for the Second Quarter Ended July 31, 2011

ID: 1035664
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(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier Announces Financial Results for the Second Quarter Ended July 31,
2011
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The issuer is solely responsible for the content of this announcement.

MONTREAL, QUEBEC--(Marketwire - August 31, 2011) - 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 $4.7 billion, compared to $4 billion last fiscal
year
* EBIT of $296 million, or 6.2% of revenues, compared to $249 million, or
6.2%, last fiscal year
* Net income of $211 million, compared to $138 million last fiscal year
* Earnings per share of $0.12, compared to $0.07 last fiscal year
* Free cash flow usage of $1.1 billion, compared to a usage of $562 million
last fiscal year
* Cash position of $3.2 billion, compared to $4.2 billion as at January
31, 2011
* Strong backlog of $56.9 billion, compared to $52.7 billion as at January
31, 2011
* Signature of 43 firm orders for the CSeries family of aircraft for a total
value of $2.8 billion, based on list prices
* Renewal of BA and BT's letter of credit and the revolving credit facilities
at improved conditions


Bombardier today reported its financial results for the second quarter ended
July 31, 2011. This is the second interim reporting period under IFRS(i).
Revenues increased by 17% to reach $4.7 billion, compared to $4 billion for the
corresponding period last fiscal year. Earnings before financing income,
financing expense and income taxes (EBIT) totalled $296 million, versus $249
million last fiscal year. The EBIT margin stands at 6.2%, the same as last
fiscal year.

Net income for the second quarter ended July 31, 2011 amounted to $211 million,
compared to $138 million for the same period last fiscal year. Diluted earnings


per share (EPS) was $0.12, compared to $0.07 last fiscal year. Free cash flow
(cash flows from operating activities less net additions to property, plant and
equipment and intangible assets) usage totalled $1.1 billion for the second
quarter ended July 31, 2011, compared to a usage of $562 million last fiscal
year. The cash position amounted to $3.2 billion as at July 31, 2011, compared
to $4.2 billion as at January 31, 2011. The overall backlog reached $56.9
billion as at July 31, 2011, compared to $52.7 billion as at January 31, 2011.

"We delivered good results for the second quarter with increased revenues,
profitability and EPS," said Pierre Beaudoin, President and Chief Executive
Officer, Bombardier Inc.

"Bombardier Transportation's level of activity remained strong and its book-to-
bill ratio of 1.5, in a context of increased revenues for the second quarter, is
a clear indication of the strength of this segment. While Bombardier Aerospace's
level of new orders in both business aircraft and CSeries commercial aircraft
improved substantially year-over-year, we continue to monitor the economic
uncertainty and market volatility in the U.S. and Europe," continued Mr.
Beaudoin.

"Both groups were in a situation of free cash flow usage again this quarter, so
we must keep our focus on execution. Nevertheless, our very large backlog of
$56.9 billlion, added to our portfolio of great products, position us well for
the years ahead," concluded Mr. Beaudoin.

In May 2011 and June 2011, Bombardier Transportation and Bombardier Aerospace
renewed their letter of credit facilities. These facilities no longer require
collateral, thus enabling the increase of the overall liquidity of the company
by $705 million. Also in June 2011, Bombardier Inc. increased its $500-million
unsecured revolving credit facility to $750 million which will mature in June
2014. This revolving credit facility has not been used since its inception.

Bombardier Aerospace

Bombardier Aerospace's revenues totalled $2.1 billion, compared to $1.9 billion
last fiscal year. EBIT totalled $105 million translating into an EBIT margin of
5% for the second quarter ended July 31, 2011, compared to $101 million, or
5.2%, last fiscal year.

Free cash flow usage totalled $448 million compared to a usage of $343 million
for the same period last fiscal year, reflecting the group's continuing
investments in its programs and a lower level of advances from customers. Given
the economic uncertainty in the U.S. and Europe, Bombardier Aerospace expects a
continued lower level of advances from customers than initially anticipated for
the current fiscal year, mainly due to the postponement of orders in the
regional aircraft market. Therefore, cash flows from operating activities will
be lower than the group's net investment in capital expenditures, resulting in a
free cash flow usage for the current fiscal year.

A total of 56 aircraft were delivered during the second quarter ended July
31, 2011 compared to 49 for the same period last fiscal year. Bombardier
Aerospace's backlog increased by 20% reaching $23 billion as at July 31, 2011,
compared to $19.2 billion as at January 31, 2011.

According to the latest General Aviation Manufacturers Association (GAMA)
report, for the first six months of calendar year 2011, Bombardier Aerospace was
again the business aircraft industry leader, both in terms of revenues and units
delivered in the market categories in which it competes. The Business Aircraft
division continued to experience an increasing level of orders for the second
quarter ended July 31, 2011, with 43 net orders, compared to 14 for the same
period last year. This includes a firm order for 10 Global 8000 aircraft from
VistaJet of Switzerland for a value of $650 million, based on list price.

During the second quarter, Bombardier Aerospace received 43 net orders for the
CSeries family of aircraft for a value of $2.8 billion, based on list prices.
Among these, an order from Korean Air for 10 CS300 aircraft with 10 options on
CS300 aircraft, makes this airline the launch customer for the CSeries aircraft
in Asia. There were 133 aircraft firm orders for the CSeries aircraft family
with 119 options as at July 31, 2011.

Bombardier Transportation

Bombardier Transportation increased its revenues by 26%, reaching $2.7 billion
for the second quarter ended July 31, 2011, compared to $2.1 billion for the
same period last fiscal year. EBIT was $191 million, compared to $148 million
last fiscal year, translating into an EBIT margin of 7.2% versus 7% last fiscal
year. Free cash flow usage amounted to $473 million for the second quarter ended
July 31, 2011, compared to a usage of $122 million for the same period last
fiscal year. The order backlog totalled $33.9 billion as at July 31, 2011,
compared to $33.5 billion as at January 31, 2011.

The order activity in the transportation industry continues at a high level
across large European customers and Bombardier Transportation has continued to
show its leadership in the market. During the second quarter, Bombardier
Transportation reported $3.9 billion of new orders, representing a book-to-bill
ratio of 1.5, compared to $4.3 billion of new orders last fiscal year.

The orders included a partnership with Siemens AG of Germany for the development
and supply of components for ICx high speed trains for a Deutsche Bahn (DB)
contract, under which a firm order was obtained for 130 trains valued at $1.8
billion. Bombardier Transportation also won an order from the London Underground
for a CITYFLO 650 CBTC signalling system for a value of $577 million as well as
an order from the Queensland Government of Australia for the Gold Coast Rapid
Transit light rail system and a 15-year maintenance contract, for a value of
$265 million.

During the quarter, Bombardier Transportation also signed a framework agreement
with DB Regio AG, Germany, for 200 TRAXX diesel locomotives with multi-engine
propulsion, estimated at $867 million. Under this agreement, a firm order for
20 locomotives was received, valued at $90 million.

Subsequent to the end of the second quarter, the Chicago Transit Authority
(CTA), U.S. exercised an option for 300 additional rapid transit cars, valued at
$331 million.


FINANCIAL HIGHLIGHTS

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



Three-month periods

ended July 31
--------------------------------------------------------------------------------------
                2011                 2010
--------------------------------------------------------------------------------------
    BA     BT     Total     BA     BT     Total
--------------------------------------------------------------------------------------
Results of
operations

Revenues   $ 2,085   $ 2,662     $ 4,747   $ 1,932   $ 2,113     $ 4,045

Cost of sales   1,803     2,229     4,032     1,648     1,756     3,404
--------------------------------------------------------------------------------------
Gross margin   282     433     715     284     357     641

SG&A   157     207     364     153     186     339

R&D   24     34     58     44     32     76

Other expense
(income)   (4 )   1     (3 )   (14 )   (9 )   (23 )
--------------------------------------------------------------------------------------
EBIT $ 105     $ 191     296     $ 101     $ 148     249

Financing
expense               179                 179

Financing
income               (144 )               (113 )
--------------------------------------------------------------------------------------
EBT               261                 183

Income taxes               50                 45
--------------------------------------------------------------------------------------
Net income             $ 211               $ 138

Attributable
to :

  Equity
holders of
Bombardier
Inc.             $ 210               $ 134

  Non-
controlling
interests               1                 4
--------------------------------------------------------------------------------------
              $ 211               $ 138

EPS (in
dollars)

  Basic and
diluted             $ 0.12               $ 0.07
--
Segmented
free cash
flow $ (448 ) $ (473 ) $ (921 ) $ (343 ) $ (122 ) $ (465 )

Net income
taxes and net
interest paid               (146 )               (97 )
--------------------------------------------------------------------------------------
Free cash
flow             $ (1,067 )             $ (562 )
--------------------------------------------------------------------------------------




Six-month periods

ended July 31
--------------------------------------------------------------------------------------
                2011                 2010
--------------------------------------------------------------------------------------
    BA     BT     Total     BA     BT     Total
--------------------------------------------------------------------------------------
Results of
operations

Revenues $ 4,273   $ 5,135   $ 9,408   $ 3,889   $ 4,420   $ 8,309

Cost of sales   3,660     4,297     7,957     3,289     3,688     6,977
--------------------------------------------------------------------------------------
Gross margin   613     838     1,451     600     732     1,332

SG&A   317     410     727     306     382     688

R&D   57     65     122     88     65     153

Other expense
(income)   (7 )   1     (6 )   (28 )   (9 )   (37 )
--------------------------------------------------------------------------------------
EBIT $ 246   $ 362     608   $ 234   $ 294     528

Financing
expense               352                 337

Financing
income               (281 )               (228 )
--------------------------------------------------------------------------------------
EBT               537                 419

Income taxes               106                 86
--------------------------------------------------------------------------------------
Net income             $ 431               $ 333

Attributable
to :

  Equity
holders of
Bombardier
Inc.             $ 430               $ 328

  Non-
controlling
interests               1                 5
--------------------------------------------------------------------------------------
              $ 431               $ 333

EPS (in
dollars)

  Basic and
diluted             $ 0.24               $ 0.18

Segmented
free cash
flow $ (616 ) $ (641 ) $ (1,257 ) $ (548 ) $ (156 ) $ (704 )

Net income
taxes and net
interest paid               (219 )               (75 )
--------------------------------------------------------------------------------------
Free cash
flow             $ (1,476 )             $ (779 )




BA : Bombardier Aerospace; BT : Bombardier Transportation

Financial Results for the Second Quarter Ended July 31, 2011
ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $4.7 billion for the second quarter ended July
31, 2011, compared to $4 billion for the same period last year. For the six-
month period ended July 31, 2011, consolidated revenues amounted to $9.4
billion, compared to $8.3 billion for the same period last year.

For the second quarter ended July 31, 2011, EBIT totalled $296 million, or 6.2%
of revenues, compared to an EBIT of $249 million, or 6.2%, for the same period
the previous year. For the semester ended July 31, 2011, EBIT amounted to $608
million, or 6.5% of revenues, compared to an EBIT of $528 million, or 6.4%, for
the same period last fiscal year.

Net financing expense amounted to $35 million for the second quarter ended July
31, 2011, compared to $66 million for the corresponding period last year. The
$31-million decrease is mainly due to lower net financing expense related to
retirement benefits, lower accretion expense on provisions and other financial
liabilities and a net gain on certain financial instruments. For the six-month
period ended July 31, 2011, net financing expense amounted to $71 million,
compared to $109 million for the same period last year. The $38-million decrease
is mainly due to lower net financing expense related to retirement benefits.

The effective income tax rate was 19.2% and 19.7% respectively for the three-
and six-month periods ended July 31, 2011, compared to the statutory income tax
rate of 28.4%. The lower effective tax rates are mainly due to the positive
impact of the recognition of income tax benefits related to operating losses and
temporary differences, partially offset by permanent differences.

As a result, net income amounted to $211 million, or $0.12 per share, for the
second quarter ended July 31, 2011, compared to $138 million, or $0.07 per
share, for the same period the previous year. For the first semester ended July
31, 2011, net income was $431 million, or $0.24 per share, compared to $333
million, or $0.18 per share, for the same period the previous year.

For the three-month period ended July 31, 2011, free cash flow usage totalled
$1.1 billion, compared to a usage of $562 million for the corresponding period
the previous year. For the semester ended July 31, 2011, free cash flow usage
totalled $1.5 billion, compared to a usage of $779 million for the corresponding
period the previous year.

As at July 31, 2011, Bombardier's order backlog stood at $56.9 billion, compared
to $52.7 billion as at January 31, 2011.

Bombardier Aerospace

* Revenues of $2.1 billion
* EBITDA of $149 million, or 7.1% of revenues
* EBIT of $105 million, or 5% of revenues
* Free cash flow usage of $448 million
* 56 aircraft deliveries
* 86 aircraft net orders
* Order backlog of $23 billion
* Signature of 43 firm orders for the CSeries family of aircraft for a total
value of $2.8 billion, based on list prices


Bombardier Aerospace's revenues amounted to $2.1 billion for the three-month
period ended July 31, 2011, compared to $1.9 billion for the same period the
previous year. The increase is mainly due to increased manufacturing revenues
due to higher deliveries of business and commercial aircraft, and higher parts
services and aircraft maintenance revenues.
For the second quarter ended July 31, 2011, EBIT totalled $105 million, or 5% of
revenues, compared to $101 million, or 5.2%, for the same period the previous
year. The 0.2 percentage-point decrease is mainly due to higher cost of sales
per unit (mainly due to price escalation of materials) and reduction in other
income (mainly due to a net negative variance resulting from financial
instruments carried at fair value), partially offset by lower research and
development (R&D) expenses (mainly due to lower amortization of program tooling
as a result of the change from a straight-line amortization method to a method
based on units produced), higher margins from parts services and higher
absorption of selling, general and administrative (SG&A) expenses.

Free cash flow usage totalled $448 million for the second quarter ended July
31, 2011, compared to a usage of $343 million for the same period last fiscal
year. The $105-million decrease is mainly due to higher net additions to
property, plant and equipment (PP&E) and intangible assets due to our
significant investments in new products.

For the quarter ended July 31, 2011, aircraft deliveries totalled 56, compared
to 49 for the same period the previous year. The 56 deliveries consisted of 35
business, 20 commercial and 1 amphibious aircraft (30 business, 18 commercial
and 1 amphibious aircraft for the corresponding period last fiscal year).

Bombardier Aerospace recorded 86 net orders during the quarter ended July
31, 2011, compared to 29 during the corresponding period the previous year. The
86 net orders consisted in 43 net orders for business aircraft (56 new orders
with 13 cancellations) and 43 new orders for commercial aircraft (14 net orders
of business aircraft and 15 new orders of commercial aircraft for the
corresponding period last fiscal year).

Bombardier Aerospace's firm order backlog stood at $23 billion as at July
31, 2011, compared to $19.2 billion as at January 31, 2011. The 20% increase in
the order backlog is mainly attributable to an increase in large business
aircraft and CSeries family of aircraft orders, partially offset by a lower
order backlog for turboprops and regional jets.

Bombardier Transportation

* Revenues of $2.7 billion
* EBITDA of $225 million, or 8.5% of revenues
* EBIT of $191 million, or 7.2% of revenues
* Free cash flow usage of $473 million
* Order intake totalling $3.9 billion (book-to-bill ratio of 1.5)
* Order backlog of $33.9 billion


Bombardier Transportation's revenues amounted to $2.7 billion for the three-
month period ended July 31, 2011, compared to $2.1 billion for the same period
last year. The increase is mainly due to rolling stock's higher activities due
to ramp-up of production on existing contracts and new orders in metro cars in
Europe and Asia, in mass transit and locomotives in North America, in commuter
and regional trains mainly in Europe, in locomotives in Europe and in intercity,
high speed and very high speed trains in Europe; partially offset by lower
activities due to phasing out of existing contracts ahead of ramping-up
production on new contracts in rolling stock in Asia, in light rail vehicles in
Europe, and in propulsion and controls. The increase also reflects a positive
currency impact.
For the second quarter ended July 31, 2011, EBIT totalled $191 million, or 7.2%
of revenues, compared to an EBIT of $148 million, or 7%, for the same quarter
the previous year. The 0.2 percentage-point increase is mainly due to higher
absorption of SG&A and R&D expenses, partially offset by lower margin
recognition as a consequence of an unfavourable contract mix in the short-term
and timing of new orders.

Free cash flow usage was $473 million for the quarter ended July 31, 2011,
compared to a usage of $122 million for the same period last fiscal year. The
$351-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, 2011 was $3.9 billion,
for a book-to-bill ratio of 1.5, compared to $4.3 billion of order intake for
the same period last fiscal year.

Bombardier Transportation's backlog stood at $33.9 billion as at July 31, 2011,
compared to $33.5 billion as at January 31, 2011. The $0.4-billion increase is
due to the strengthening of most foreign currencies, mainly the euro, versus the
U.S. dollar as at July 31, 2011 compared to January 31, 2011.

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, 2011 to the shareholders of record at the close of business on
October 14, 2011.


Holders of Class B Shares (Subordinate Voting) of record at the close of
business on October 14, 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 June 15, July 15, and on August 15, 2011.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is
payable on October 31, 2011 to the shareholders of record at the close of
business on October 14, 2011.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is
payable on October 31, 2011 to the shareholders of record at the close of
business on October 14, 2011.

(i) Comparative figures have been restated to comply with IFRS.

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 (at)Bombardier.

CS300, CSeries, CITYFLO, Global, Global 8000 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.

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
International Financial Reporting Standards (IFRS). 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 IFRS; 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
this presentation is consistent with industry practice.

Contact Information
Contacts:
Isabelle Rondeau
Director, Communications
+514-861-9481

Shirley Chenier
Senior Director, Investor Relations
+514-861-9481
www.bombardier.com

--- End of Message ---

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


Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;





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Source: Bombardier Inc. via Thomson Reuters ONE

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Date: 08/31/2011 - 09:04
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