Category: Bombardier Aerospace

HK Bellawings Jet Limited of Hong Kong Exercises Options for Two Global 7500 Business Jets and Signs New Letter of Intent for Five Additional Global 7500 Aircraft

Provided by Bombardier Inc

May 21, 2019GenevaBusiness Aircraft,  Press Release

David Coleal, President, Bombardier Aviation and HK Bellawings’ President, Mr. YJ Zhang
  • Two Global 7500 business jet options exercised are part of initial agreement signed in May 2018 at the European Business Aviation Convention & Exhibition (EBACE) in Geneva
  • Letter of intent for five new Global 7500 aircraft reinforces flagship status as the largest and longest range business jet, ideally suited for the Greater China region
  • HK Bellawings Jet Limited becomes operator managing China’s largest fleet of Global 7500 aircraft

Bombardier is pleased to announce that Hong Kong aircraft management company HK Bellawings Jet Limited has signed a letter of intent (LOI) for five new Global 7500business jets and has also exercised options for two Global 7500 business jets, as part of the initial agreement signed in May last year. This news comes as the industry flagship Global 7500 aircraft is showcased for the first time at the European Business Aviation Conference & Exhibition (EBACE) in Geneva.

“The Global 7500 aircraft continues to demonstrate its unrivalled performance and smooth ride, all the while delivering uncompromising value to customers under any conditions, at any time, without the need for tailwinds,” said David Coleal, President, Bombardier Aviation. “HK Bellawings’ experienced and professional team is a perfect fit for the Global 7500 aircraft’s superior performance and we are thrilled that they have chosen our flagship to expand their growing fleet of business jets.”

“Today marks a step forward towards our goal of becoming the premier Asian private jet operator. We are very impressed with Bombardier’s Global 7500 aircraft since its entry into service less than six months ago,” said HK Bellawings’ President Mr. YJ Zhang. “Its unmatched performance and range is ideally suited for our customers in the Greater China region. As the operator that will manage one of the world’s largest fleet of Global 7500 aircraft, HK Bellawings Jet will further expand its business scope and continuously pursue higher goals.”

Winner of the 2019 Aviation Week Grand Laureate Award and a Red Dot award for design, the Global 7500 jet offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. Featuring a full-size kitchen and four true living spaces, the aircraft sets the benchmark for the most exceptional cabin interior. The Global 7500 aircraft’s range of 7,700 nautical miles is the longest in business aviation. This business jet can connect the cities of Beijing, Shanghai and Hong Kong non-stop to the cities of New York, London or Milan, and also fly nonstop from Singapore to Vancouver.*

Established in 2014, HK Bellawings Jet Limited is a distinguished business jet management company dedicated to providing a diverse array of professional, highly efficient and comprehensive business aviation services and solutions, which include business jet management, aircraft maintenance, travel concierge service, aircraft acquisition service, and business aviation consultancy. They operate a fleet of Challenger and Global business aircraft.

Bombardier Further Improves Segment-defining Challenger 350 Aircraft with Suite of Enhancements

Provided by Bombardier Inc

May 20, 2019 Geneva Business Aircraft, Press Release

  • Performance improvement package now allows the Challenger 350 aircraft to fly up to 1,500 NM farther out of short runways
  • Newly introduced Head-up Display (HUD) and Enhanced Vision System (EVS) capabilities now available to complement the aircraft’s unmatched versatility
  • Enhanced sound-proofing technology further establishes the Challenger 350 aircraft cabin as the quietest in its class
  • Challenger 300 series aircraft family boasts more deliveries in the last decade than any other business jet platform

Bombardier today confirmed a suite of updates to its Challenger 350 aircraft are all progressing on track for implementation in 2019, further underscoring its leadership position in the super mid-size segment. New enhancements for the aircraft include a performance improvement package particularly effective for short runways, available compact Head-up Display (HUD) and Enhanced Vision System (EVS), along with improved cockpit aesthetics and cabin sound-proofing technology.

“The new offerings we have introduced on the Challenger 350 aircraft clearly reflect our longstanding commitment to continually innovate and boost the performance of the industry’s best-selling business jet,” said David Coleal, President, Bombardier Aviation. “With its unmatched reliability and economics, unrivalled cabin comfort and ultra-smooth ride, the Challenger 350 aircraft offers customers an unbeatable value proposition. With these enhancements in place, we are confident that the Challenger 350 business jet will continue to be the leading choice of knowledgeable and experienced operators around the globe for years to come.”

A performance improvement package consisting of enhanced rudder authority and superior braking performance allows Bombardier’s best-selling Challenger 350 aircraft to fly up to 1,500 NM farther out of short runways and enables operation at Santa Monica airport. The greater short-field performance ability of the aircraft conveniently complements its steep approach certifications, awarded by international regulatory bodies including EASA, FAA and TC, thereby granting passengers access to reach countless coveted destinations worldwide.

The available lightweight HUD and EVS allow pilots to fly eyes forward in all phases of flight, most crucially during takeoff and landing. These technological enhancements in the cockpit further expand the advanced avionics functionalities of the aircraft and work to reduce pilot workload and improve overall situational awareness. New Challenger 350 aircraft also feature improved ergonomics and aesthetics, including the Bombardier signature leather-stitched yoke, further highlighting the productive and elegant nature of the advanced flight deck. The HUD and EVS can be installed as a retrofit on in-service models in Bombardier’s extensive global network of service centres.

Recognized for its state-of-the-art acoustical insulation, Bombardier’s best-selling Challenger 350 business jet now features refined sound-proofing technology that reduces cabin noise levels by an additional 1-2 dB SIL, and up to 4-5 dB SIL quieter than previous Challenger 300 series models, clearly establishing it as the quietest aircraft in its class.

As the only super mid-size aircraft that can fly full range at full fuel with full seat capacity, the 
Challenger 350 aircraft offers the luxury of having it all. With its signature smooth ride, exceptional cabin and the lowest operating costs in its class, the best-selling business aircraft of the last decade is in high demand on the charter market. With a range of 3,200 NM (5,926 km), the Challenger 350 aircraft can connect New York to London non-stop.

These new capabilities and cockpit improvements build on Bombardier’s drive and commitment to offer its customers consistent innovation on the high-performing Challenger 300 aircraft platform, which has accounted for more deliveries than any other business aircraft in the last decade.

Bombardier Welcomes First Global 6500 Aircraft into its State-of-the-art Completion Facility in Montreal

Provided by Bombardier Inc

May 20, 2019 Geneva Business Aircraft,  Press Release

  • First production Global 6500 aircraft moves into the Laurent Beaudoin Completion Centre, as the newest member of the Global family advances towards entry-into-service as planned later this year
  • Ninety per cent of total flight test complete, wing and engine in final stages of validation
  • All testing on first flight test vehicle is complete; aircraft is retired
  • The Global 6500 aircraft offers greater range, a larger cabin and a smoother ride than competitor aircraft in the same class
  • Featuring Bombardier’s patented and innovative Nuage seating, the spacious cabin is designed for an unprecedented level of comfort

Bombardier is pleased to announce that the first Global 6500 aircraft was inducted in its state-of-the-art completion centre in Montreal moving the new addition to the Global family closer to entry-into-service later this year.

“As the Global 6500 jet progresses towards entry-into-service, we couldn’t be happier to welcome the first production aircraft in our state-of-the-art facilities in Montreal, where high-precision completion work is being carried out on the new business jet,” said Julien Boudreault, Vice President, Program Management, Bombardier Aviation. “With the longest range, largest cabin in its class and smoothest ride, the Global 6500 boasts an innovative interior design and enhanced performance, offering the convenience and state-of-the-art technology our customers have come to expect from the Global family.”

Flight testing is progressing well, with 90 per cent of flight testing completed at Bombardier’s world-class test centre in Wichita, Kansas. The first flight test vehicle (FTV) has successfully completed all mission testing and is now retired. The Rolls-Royce Pearl 15 engine, the most advanced in business aviation, is delivering on the unmatched total performance expected and FTV2 and FTV3 are performing exceptionally well throughout the rigorous flight testing program.

The purpose-built Rolls-Royce Pearl 15 engines and a new wing make the Global 6500 aircraft faster and more efficient. The Global 6500 aircraft boast optimal operating costs that outmatch all other aircraft in their class, along with the built-in systems redundancy and robustness for which Bombardier Global aircraft are renowned.

Taking total performance to new heights, the Global 6500 aircraft delivers a range increase of up to 1,300 nautical miles when operating out of hot weather and high-altitude conditions, thanks to increased engine thrust and improved overall fuel efficiency. With a top speed of Mach .90, the Global 6500 aircraft can connect Hong Kong or Singapore to London and Toluca to Madrid non-stop. The re-imagined wing brings flexibility and redefined aerodynamics to ensure a smooth ride from takeoff to landing.

The Global 6500 aircraft offers a stunning redesigned cabin with exclusive features that are as innovative as they are luxurious. The Global 6500 business jet also debuts the Nuage chaise, a unique seating innovation, which adds new dimensions to the conference suite as a lounge chair that converts into a flat surface for sleeping or banquet-style dining around the table. Bombardier’s patented Nuage seat, meticulously designed for maximum comfort, is also exclusive to the new Global aircraft family. With its distinctive technologies engineered for maximum comfort and effortless movement, the Nuage seating is ideally suited for long-range flights.

Bombardier’s Global 7500 Jet Demonstrates Unmatched Performance with Industry’s First Ever Non-stop Mission from London City Airport to Los Angeles

Provided by Bomvardier Inc

May 16, 2019, Montréal, Bombardier Inc.,  Business Aircraft,  Press Release

  • Mission highlights Global 7500 jet’s outstanding short-field performance and steep approach capabilities, giving passengers direct access to one of the world’s greatest financial centres 
  • Aircraft showcased its impressive field performance and low-speed versatility during takeoff from London City Airport
  • The multiple award-winning Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets

Bombardier today announced that its Global 7500 aircraft, the world’s largest and longest range business jet, has demonstrated its unmatched performance capabilities with the first ever flight from London City Airport to Los Angeles, CA.

The aircraft flew non-stop from London City Airport (LCY), one of the most notable airports requiring steep approach capabilities, to Van Nuys, CA, one of the most popular business aviation airports serving the Los Angeles area. The flight was carried out by a flight test vehicle (FTV5) called “The Masterpiece,” in London City to complete the Global 7500 aircraft’s steep approach certification flight test campaign for Transport Canada.

The Masterpiece was configured with the equivalent weight of a fully fitted interior, including a stateroom and shower, and 2,400 lbs of additional payload, representing about 11 passengers and their baggage.

As part of its steep approach certification flight test campaign, the aircraft also performed several takeoffs and landings at London City Airport to demonstrate this operational capability. With its tremendous performance and flexibility, the Global 7500 aircraft gives passengers direct access to any location in the U.S. from the airfield deep in the heart of one of the world’s greatest financial centres.   

“The Global 7500 aircraft’s combination of unrivalled performance, exquisite cabin experience and size simply cannot be matched,” said Peter Likoray, Senior Vice President, Worldwide Sales and Marketing, Bombardier Business Aircraft. “This demonstration continues to cement the Global 7500 jet as the industry leader, showcasing once again to customers the real-world capabilities of this revolutionary aircraft that can deliver uncompromising value to customers under any conditions, at any time, without the need for tailwinds.”

“Welcoming the Bombardier Global 7500 aircraft to London City Airport for its flight test campaign is a crucial milestone towards certification and subsequent business jet operations at London’s most central airport,” said Gary Hodgetts, Director of Operations at London City Airport. “The flight completed by the Global 7500 FTV on May 11th is the longest flight ever out of London City and simply demonstrates the exceptional performance of the aircraft.”

The Global 7500 aircraft is the largest business jet with short-field performance and steep approach capabilities able to operate out of London City Airport and to connect any city in the continental U.S., Africa or the Middle East*. Its long-range performance can go even further traveling eastward, reaching most major cities in Asia.

This latest mission comes only weeks after the aircraft set back-to-back city-pair speed records for the fastest ever business jet flights between New York and London, and between Los Angeles and New York. Prior to that, the Global 7500 aircraft also completed an unprecedented long-range mission from Singapore to Tucson, Arizona, departing as planned during its busy world-tour schedule—without the need to linger at the airfield for days on end, waiting for exponentially stronger tailwinds, as some smaller aircraft do.

Winner of the 2019 Aviation Week Grand Laureate Award and a Red Dot award for design, the Global 7500 jet offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. Featuring a full-size kitchen and four true living spaces, the Global 7500 aircraft sets the benchmark for the most exceptional cabin interior. The aircraft offers the most innovative features such as the recently unveiled Soleil lighting system, the industry’s most advanced cabin lighting technology. Designed and developed exclusively for the Global 7500 aircraft, the innovative Soleil lighting system is aviation’s first circadian rhythm-based cabin lighting technology fully integrated with the Flight Management System, and it introduces the revolutionary Dynamic Daylight Simulation feature, which can help combat jet lag. The Global 7500 business jet also offers the patented Nuage seat, meticulously designed for maximum comfort, which introduces an all-new, ergonomically-perfected deep recline position – unavailable on any other business aircraft.

TSB is deploying accredited representative to assist investigation into an accident involving a Bombardier Challenger near Ocampo, Mexico

Provided by Transportation Safety Board of Canada/CNW


GATINEAU, QC, May 7, 2019 /CNW/ – The Transportation Safety Board of Canada (TSB) is deploying an accredited representative to assist with the investigation into an accident involving a Bombardier Challenger aircraft near Ocampo, Mexico.

Pursuant to international agreements (International Civil Aviation Organization (ICAO) Annex 13), the TSB has appointed an accredited representative to the investigation to coordinate the exchange of technical and safety information regarding the Canadian elements.

The Government of Mexico is the lead investigation authority. Please contact its representatives for further information regarding the accident and investigation.

The TSB is an independent agency that investigates marine, pipeline, railway and aviation transportation occurrences. Its sole aim is the advancement of transportation safety. It is not the function of the Board to assign fault or determine civil or criminal liability.

The TSB is online at www.tsb.gc.ca. Keep up to date through RSSTwitter (@TSBCanada), YouTubeFlickr and our blog.

Bombardier Reports First Quarter 2019 Financial Results and New Strategic Direction for Aerospace, the formation of Bombardier Aviation

Provided by Bombardier Inc/GlobeNewswire

  • First quarter results in line with preliminary results announced last week.
  • Announces the strategic formation of Bombardier Aviation, consolidating all aerospace assets into a single, streamlined and fully integrated business. As a result, Bombardier will pursue the divestiture of its Belfast and Morocco aerostructures businesses.

    All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.

MONTRÉAL, May 02, 2019 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) announced today its financial results for the first quarter of 2019, in line with the preliminary results published on April 25, 2019. The Company also announced that it will consolidate its aerospace assets into a single, streamlined, and fully integrated Bombardier Aviation business unit, which will be led by David Coleal.

“We are very excited to announce the strategic formation of Bombardier Aviation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “It is the right next step in our transformation. The consolidation will simplify and better focus our organization on our leading brands, GlobalChallengerLearjet and the CRJ. It will also allow us to better support our customers and generate value for shareholders.”

“With our clear vision for the future of Bombardier Aviation, we will focus our aerostructures activities around our core capabilities in Montréal, Mexico and our newly acquired Global 7500 wing operations in Texas,” Bellemare continued. “Collectively, these facilities provide Bombardier with all the skills, technologies and capabilities to design, produce and service the current and next generation of aircraft.”

As the Company moves to optimize its global manufacturing footprint, Bombardier will pursue the divestiture of the Belfast and Morocco aerostructures businesses. These are great businesses with tremendous capabilities.

Bombardier Aviation will continue to be the best business aircraft franchise in the world, and well positioned to maximize the value of its proven CRJregional jets. Together, Bombardier Aviation and Bombardier Transportation will be two strong pillars supporting Bombardier’s future.

Financial Results

First quarter 2019 adjusted EBITDA(1) and adjusted EBIT(1) were $266 million and $171 million, respectively, on revenues of $3.5 billion. On a reported basis, EBIT was $684 million, driven higher by the $516 million gain on disposal of the training business closed during the quarter. Free cash flow usage(1) in the first quarter was $1.0 billion, supporting the intense ramp-up of key rail projects and Global 7500 aircraft deliveries in the second half of the year. Cash flow usage from operating activities amounted to $907 million in the first quarter.

As announced last week, Bombardier’s consolidated revenue guidance for 2019 has been adjusted to reflect revised expectations at Transportation and Commercial Aircraft. Full year revenues are expected to be approximately $17.0 billion, approximately $1.0 billion lower than originally anticipated. Year over year, the revised guidance represents approximately 10% organic growth over 2018, excluding currency effects and divestitures.

While earnings expectations across the aerospace businesses are unchanged, Transportation’s adjusted EBIT guidance is reduced by approximately $150 million for the year. As a result, the Company expects to report full year consolidated adjusted EBITDA of $1.50-1.65 billion, implying growth of almost 20% year over year. Consolidated adjusted EBIT guidance is also revised, and is now expected at $1.0-1.15 billion.

Commenting on Transportation’s ramp-up challenges, Bellemare stated, “despite the current industrial challenges we are facing, the business fundamentals at Bombardier Transportation remain very strong. We have a refreshed product portfolio, a broad global customer base and a strong $34-billion backlog. The team is making steady progress addressing our challenging legacy projects, however, it will take us a few more quarters to manage these projects to completion.”

Free cash flow guidance for the full year remains unchanged, at breakeven plus or minus $250 million, as Global 7500 aircraft and key Transportation project deliveries are expected to accelerate in the second half of the year.

Termination of the Corporation’s Automatic Securities Disposition Plan

Bombardier also announced today that its Board of Directors, upon the recommendation of its Human Resources and Compensation Committee, decided to terminate its automatic securities disposition plan (ASDP) established on August 15, 2018 in accordance with its terms.

SELECTED RESULTS

RESULTS OF THE QUARTER
Three-month periods ended March 312019(2)2018Variance
Revenues$3,516$4,028(13) %
EBIT$684$201240%
EBIT margin19.5%5.0%1450 bps
Adjusted EBIT$171$201(15) %
Adjusted EBIT margin(1)4.9%5.0%(10) bps
Adjusted EBITDA
$266$265
Adjusted EBITDA margin(1)7.6%6.6%100 bps
Net income$239$44443%
Diluted EPS (in dollars)$0.08$0.01$0.07
Adjusted net income (loss)(1)$(122)$35nmf
Adjusted EPS (in dollars)(1)$(0.07)$0.01$(0.08)
Cash flows from operating activities$(907)$(471)(93) %
Net additions to PP&E and intangible assets$137$250(45) %
Free cash flow usage$(1,044)$(721)(45) %
As atMarch 31, 2019December 31, 2018Variance
Available short-term capital resources(3)$4,169$4,373(5) %
Order backlog (in billions of dollars)$53.2$53.1

SEGMENTED RESULTS AND HIGHLIGHTS

Business Aircraft

Results of the quarter
Three-month periods ended March 3120192018Variance
Revenues$970$1,110(13)%
Aircraft deliveries (in units)2431(7)
EBIT$594$97512%
EBIT margin61.2%8.7%5250 bps
Adjusted EBIT$74$98(24)%
Adjusted EBIT margin7.6%8.8%(120) bps
Adjusted EBITDA$114$114
Adjusted EBITDA margin11.8%10.3%150 bps
Net additions to PP&E and intangible assets$84$188(55)%
As atMarch 31, 2019December 31, 2018Variance
Order backlog (in billions of dollars)$14.9$14.34%
  • Revenues totaled $970 million on 24 aircraft, as deliveries ramp-up through the year to reach full year guidance.
  • Aftermarket service revenues continued to grow double-digit, at 20% year over year, supported by the strategy to expand footprint and move closer to customers. During the quarter, Business Aircraft announced the expansion of its Singapore Service Centre to further bolster customer service capabilities in the Asia-Pacific region by 2020.
  • Adjusted EBIT margin of 7.6% reflects the Global 7500 ramp-up and higher aftermarket revenues. The intensification of Global 7500 activities is expected to weigh on earnings before adjusted EBIT margin recovers towards full year guidance of approximately 7.5%.
  • Reported EBIT for the quarter of $594 million is largely driven by the $516 million gain on the sale of the Business Aircraft training activities to CAE.
  • Backlog increased by $0.6 billion, to an industry leading $14.9 billion, reflecting broad market interest across all regions and customer types.
  • The Global 7500 has been on a record-setting streak and continues to surpass expectations in terms of cabin experience and performance. Interest in this unique business aircraft has only intensified since entering into service at the end of 2018 as demonstrated with the recent order confirmation of four additional Global 7500 business jets by HK Bellawings.

Commercial Aircraft

Results of the quarter
Three-month periods ended March 3120192018Variance
Revenues(4)$241$463(48)%
Aircraft deliveries (in units)(5)48(4)
Net orders (in units)16412
Book-to-bill ratio(6)4.00.53.5
EBIT(7)$22$(73)nmf
EBIT margin(7)9.1%(15.8)%2490 bps
Adjusted EBIT(7)$22$(73)nmf
Adjusted EBIT margin(7)9.1%(15.8)%2490 bps
Adjusted EBITDA(7)$25$(72)nmf
 Adjusted EBITDA margin(7)10.4%(15.6)%2600 bps
Net additions to (disposals of) PP&E and intangible assets$(1)$16nmf
As atMarch 31, 2019December 31, 2018Variance
Order backlog (in units)(8)1099712
  • Revenues reached $241 million in the quarter, reducing year-over-year as a result of the deconsolidation of CSALP starting in the third quarter of 2018 as well as lower deliveries.
  • EBIT of $22 million reflects the deconsolidation of CSALP, higher proportion of aftermarket revenues and a proactive management of residual value guarantees exposure.
  • During the quarter, a subsidiary of Chorus Aviation Inc. has finalized a firm purchase agreement for nine CRJ900 aircraft to be operated by Jazz Aviation LP, making them the first Canadian operator of the new ATMOSPHERE cabin.
  • Commercial Aircraft launched the CRJ550 aircraft. Leveraging current aircraft platform, it is designed to replace the existing fleet of aging 50-seaters, while maximizing revenue potential with a triple-class cabin offering. United Airlines is the launch operator of this new model.
  • Commercial Aircraft’s expected deliveries for the year are lowered to approximately 30 aircraft as a result of the closing of the Q400 divestiture, which is now expected mid-year. Revenue guidance for the year is correspondingly adjusted to approximately $1.15 billion, with no change to adjusted EBIT(7) guidance at a loss of approximately $125 million.

Aerostructures and Engineering Services

Results of the quarter
Three-month periods ended March 3120192018Variance
Revenues$470$4465%
EBIT$66$4643%
EBIT margin14.0%10.3%370 bps
Adjusted EBIT$66$4740%
Adjusted EBIT margin14.0%10.5%350 bps
Adjusted EBITDA$78$6030%
Adjusted EBITDA margin16.6%13.5%310 bps
Net additions to PP&E and intangible assets$25$10150%
  • Revenues at Aerostructures and Engineering Services grew year-over-year to $470 million as it continued to ramp up the Global 7500 and the A220 programs.
  • External revenues increased year-over-year to 43% of total revenues as A220 components are now third party sales.
  • The EBIT margin for the three-month period increased mainly as a result of a positive impact from revenue mix skewed towards more mature programs. As Global 7500 and A220 deliveries ramp-up, full year adjusted EBIT margin guidance remains at approximately 7.5% for the year.
  • Since closing the acquisition of the Global 7500 aircraft wing program on February 6, 2019, Aerostructures and Engineering Services has focused on integrating the Red Oak, Texas facility to support the ramp-up of the Global 7500.

Transportation

Results of the quarter
Three-month periods ended March 3120192018Variance
Revenues$2,107$2,355(11)%
Order intake (in billions of dollars)$1.6$2.3(30)%
Book-to-bill ratio(9)0.81.0(0.2)
EBIT(10)$83$191(57)%
EBIT margin(10)3.9%8.1%(420) bps
Adjusted EBIT(10)$83$189(56)%
Adjusted EBIT margin(10)3.9%8.0%(410) bps
Adjusted EBITDA(10)$115$214(46)%
Adjusted EBITDA margin(10)5.5%9.1%(360) bps
Net additions to PP&E and intangible assets$28$2512%
As atMarch 31, 2019December 31, 2018 Variance
Order backlog (in billions of dollars)$33.8$34.5(2)%
  • Transportation’s revenues for the first quarter reached $2.1 billion, 5% lower year-over-year excluding currency impacts, reflecting a slower production ramp-up on certain large projects as the Corporation better synchronizes its production output to customer requirements and delivery schedules.
  • EBIT margin of 3.9% is impacted by lower revenues and the related fixed cost absorption, as well as revised cost estimates on certain challenging projects. While cost absorption headwinds are expected to be resolved as production and revenues return to planned levels later this year, the ongoing and gradual phase out of legacy projects over the course of 2019 and 2020 is expected to support improving margins.
  • Full-year revenues and adjusted EBIT guidance are adjusted to reflect the revised project delivery schedules.
    • Revenue guidance is adjusted to approximately $8.75 billion, resulting in approximately 3.5% year-over-year growth, excluding currency impacts. This reduction is driven by approximately $500 million from slower production ramp-up, which defers revenues, and approximately $250 million of unfavourable currency impact at current rates.
    • Adjusted EBIT margin is revised from approximately 9% to approximately 8%.
  • Transportation’s backlog of $33.8 billion reflects book-to-bill of 0.8 and is expected to improve throughout the year based on a strong pipeline of opportunities.

About Bombardier  
With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, Challenger, CRJ, CRJ550, CRJ900, Global, Global 7500Learjet and Q400 are trademarks of Bombardier Inc. or its subsidiaries.

For information

Simon Letendre
Manager, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+514 861 5727

The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.

bps: basis points
nmf: information not meaningful
(1) Non-GAAP financial measures. See Caution regarding non-GAAP financial measures at the end of this press release.
(2) Refer to Note 2, Changes in accounting policies, in the Corporation’s interim consolidated financial statements for the quarter ended March 31, 2019 for the impact of the adoption of IFRS 16, Leases. Under the modified retrospective approach adopted by the Corporation, 2018 figures are not restated. 
(3) Defined as cash and cash equivalents plus the amount available under the revolving credit facilities.
(4) Including revenues from CSALP for the first three months of 2018.
(5) Excluding 5 CS300 aircraft deliveries from the comparative period of 2018.
(6) Ratio of new orders received over aircraft deliveries, in units, excluding C Series aircraft orders and deliveries.
(7) Including share of net gain from CSALP for the three-month period ended March 31, 2019 amounting to $1 million.
(8) Excluding 115 and 228 firm orders of CS100 and CS300 aircraft respectively for the comparative period of 2018. Subsequent to the C Series Partnership closing, Airbus rebranded CS100 and CS300 as A220-100 and A220-300, respectively.
(9) Ratio of new orders over revenues.
(10) Including share of income from joint ventures and associates amounting to $17 million for the three-month period ended March 31, 2019 ($21 million for the three-month period ended March 31, 2018).


CAUTION REGARDING NON-GAAP FINANCIAL MEASURES

This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:

Adjusted EBITEBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges and significant impairment charges and reversals.
Adjusted EBITDAAdjusted EBIT, amortization and impairment charges on PP&E and intangible assets.
Adjusted net income (loss)Net income (loss) excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items.
Adjusted EPSEPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements.
Free cash flow (usage)Cash flows from operating activities less net additions to PP&E and intangible assets.

Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in the Corporation’s industry may define the above measures differently than the Corporation does. In those cases, it may be difficult to compare the performance of those entities to the Corporation’s based on these similarly-named non-GAAP measures.

Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labeled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT” and “EBITDA”.

Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS
Management uses adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide readers of the Corporation’s press releases with enhanced understanding of the Corporation’s results and related trends and increases the transparency and clarity of the core results of its business. Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS exclude items that do not reflect the Corporation’s core performance or where their exclusion will assist users in understanding its results for the period. For these reasons, a significant number of readers analyze the Corporation’s results based on these financial measures. Management believes these measures help readers to better analyze results, enabling better comparability of the Corporation’s results from one period to another and with peers.

Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.

Reconciliations of non-GAAP financial measures to the most comparable IFRS financial measures are provided in the tables hereafter, except for the following reconciliation:

  • Adjusted EBIT to EBIT – see the Results of operations tables in the reporting segments and Consolidated results of operations section of the Corporation’s MD&A for the quarter ended March 31, 2019.
Reconciliation of segment to consolidated results
Three-month periods ended March 31
2019(1)2018
Revenues
Business Aircraft$970$1,110
Commercial Aircraft241463
Aerostructures and Engineering Services470446
Transportation2,1072,355
Corporate and Elimination(272)(346)
$3,516$4,028
Adjusted EBIT
Business Aircraft$74$98
Commercial Aircraft22(73)
Aerostructures and Engineering Services6647
Transportation83189
Corporate and Elimination(74)(60)
$171$201
Special Items
Business Aircraft$(520)$1
Commercial Aircraft
Aerostructures and Engineering Services1
Transportation(2)
Corporate and Elimination7
$(513)$
EBIT
Business Aircraft$594$97
Commercial Aircraft22(73)
Aerostructures and Engineering Services6646
Transportation83191
Corporate and Elimination(81)(60)
$684$201
(1) Refer to Note 2, Changes in accounting policies, in the Corporation’s interim consolidated financial statements for the quarter ended March 31, 2019 for the impact of the adoption of IFRS 16, Leases. Under the modified retrospective approach adopted by the Corporation, 2018 figures are not restated.
Reconciliation of adjusted EBITDA to EBIT
Three-month periods ended March 31
20192018
EBIT$684$201
Amortization9162
Impairment charges on PP&E and intangible assets2
Special items excluding impairment charges on PP&E and intangible assets(1)(509)
Adjusted EBITDA$266$265
Reconciliation of adjusted net income (loss) to net income and computation of adjusted EPS
Three-month periods ended March 31
20192018
(per share)(per share)
Net income$239$44
Adjustments to EBIT related to special items(1)(513)$(0.22)$
Adjustments to net financing expense related to:
Net change in provisions arising from changes in interest rates and net gain on certain financial instruments(79)(0.03)(26)(0.01)
Accretion on net retirement benefit obligations180.01190.01
Loss on repurchase of long-term debt(1)800.03
Tax impact of special(1) and other adjusting items1330.06(2)0.00
Adjusted net income (loss)(122)35
Net income attributable to NCI(44)(6)
Preferred share dividends, including taxes(7)(7)
Adjusted net income (loss) attributable to equity holders of Bombardier Inc.$(173)$22
Weighted-average diluted number of common shares (in thousands)2,374,8502,370,351
Adjusted EPS (in dollars)$(0.07)$0.01
Reconciliation of adjusted EPS to diluted EPS (in dollars)
Three-month periods ended March 31
20192018
Diluted EPS$0.08$0.01
Impact of special(1) and other adjusting items(0.15)
Adjusted EPS$(0.07)$0.01
Reconciliation of free cash flow usage to cash flows from operating activities
Three-month periods ended March 31
20192018
Cash flows from operating activities$(907)$(471)
Net additions to PP&E and intangible assets(137)(250)
Free cash flow usage$(1,044)$(721)
(1) Refer to the Consolidated results of operations section in the Corporation’s MD&A for the quarter ended March 31, 2019 for details regarding special items.


FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s, anticipations and guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; growth strategy, including in the business aircraft aftermarket business; 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; expectations regarding working capital recovery across Transportation legacy projects; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies and restructuring initiatives and anticipated costs, intended benefits and timing thereof; the expected objectives and financial targets underlying our transformation plan and the timing and progress in execution thereof, including the anticipated business transition to growth cycle and cash generation; expectations and objectives regarding debt repayments, expectations and timing regarding an opportunistic redemption of CDPQ’s investment in BT Holdco; intentions and objectives for the Corporation’s programs, assets and operations, including the focus on returning to profitability and exploration of strategic options for the CRJ Series program; the anticipated benefits of the formation of Bombardier Aviation and the expected timing of completion thereof and estimated costs associated therewith; the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco, the anticipated benefits of any divestiture or other transaction resulting therefrom and their expected impact on the Corporation’s operations, infrastructure, opportunities, financial condition, business plan and overall strategy; the funding and liquidity of C Series Aircraft Limited Partnership (CSALP); and the expected impact and intended benefits of the Corporation’s partnership with Airbus and investment in CSALP and the realization of intended benefits of the Corporation’s acquisition of Triumph Group Inc. (Triumph)’s Global 7500 wing manufacturing operations and assets. As it relates to the sale of the Q Series aircraft program (the Pending Transaction), this press release also contains forward-looking statements with respect to: the expected terms, conditions, and timing for completion thereof; the respective anticipated proceeds and use thereof and/or consideration therefor, related costs and expenses, as well as the anticipated benefits of such actions and transactions and their expected impact on the Corporation’s guidance and targets; and the fact that closing of these transactions will be conditioned on certain events occurring, including the receipt of necessary regulatory approval.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management 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 forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release in relation to the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco include the following material assumptions: the identification and successful completion of one or more divestiture(s) or other transactions resulting therefrom on commercially satisfactory terms and the realization of the intended benefits therefrom within the anticipated timeframe. The assumptions underlying the forward-looking statements made in this press release in relation to the Pending Transaction discussed herein include the following material assumptions: the satisfaction of all conditions of closing and the successful completion of such strategic actions and transaction within the anticipated timeframe, including receipt of regulatory approvals. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services and Transportation in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”, the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation’s legacy projects and the release of working capital therefrom; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; risks associated with our ability to successfully implement and execute our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives, including the formation of Bombardier Aviation; doing business with partners; risks associated with the Corporation’s partnership with Airbus and investment in CSALP; risks associated with the Corporation’s ability to continue with its funding plan of CSALP and to fund, if required, the cash shortfalls; risks associated with our ability to successfully integrate our acquisition of Triumph’s Global 7500 wing manufacturing operations and assets; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018. With respect to the formation of Bombardier Aviation discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the expected benefits, costs and timing of the formation of Bombardier Aviation, and the risk it will not be completed within the expected time frame, on the expected parameters, or at all; the realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; the Corporation’s ability to ensure it has the skills, technologies and capabilities to realize the anticipated benefits of organizational changes; and negative effects of the announcement or pendency of the formation of Bombardier Aviation on the market price of the Corporation’s shares and on the financial performance of Bombardier. With respect to the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to identify and complete any divestiture or other transaction resulting therefrom within the expected time frame, on commercially satisfactory terms or at all; all or part of the intended benefits therefrom not being realized within the anticipated timeframe, or at all; and the incurrence of related costs and expenses; and negative effects of the announcement or pendency of any such divestiture or other transaction. With respect to the Pending Transaction discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to receive or delay in receiving regulatory approvals, or otherwise satisfy the conditions to the completion of the transaction or delay in completing and uncertainty regarding the length of time required to complete such transaction, and the funds and benefits thereof not being available to Bombardier in the time frame anticipated or at all; alternate sources of funding that would be used to replace the anticipated proceeds and savings from such transaction, as the case may be, may not be available when needed, or on desirable terms. Accordingly, there can be no assurance that any divestiture relating to the Corporation’s operations in Belfast and Morocco, or the Pending Transaction will be undertaken or occur, or of the timing or successful completion thereof, or the amount and use of proceeds therefrom, or that the anticipated benefits will be realized in their entirety, in part or at all. There can also be no assurance as to the completion, the form, or the timing of any BT Holdco buy-back. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

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. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in the Corporation’s forward-looking statements. The forward-looking statements set forth herein reflect management’s 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.

This press release is not intended to form the basis of any investment decision and there can be no assurance that any divestiture or other transaction in respect of the Corporation’s operations in Belfast and Morocco will be undertaken in whole or in part or of the timing or successful completion thereof, or the amount and use of proceeds therefrom, or that the anticipated benefits will be realized in their entirety, in part or at all.

GLOBAL 5500, GLOBAL 6500, GLOBAL 8000 AND CRJ550 AIRCRAFT DISCLAIMER

The Global 5500, Global 6500, Global 8000 and CRJ550 aircraft are currently in development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind.

Bombardier Unveils Leading-edge Soleil Lighting System on its Award-winning Global 7500 Aircraft

Provided by Bombardier Inc

April 29, 2019 | Los Angeles | Bombardier Inc.,  Business Aircraft

  • Global 7500 aircraft is the largest and longest range business jet in the industry, offering Bombardier’s signature smooth ride and an unrivalled cabin experience
  • The Soleil lighting system offers the industry’s only Dynamic Daylight Simulation, which serves to help combat jet lag on long-distance flights
  • Aviation’s first fully integrated lighting technology uses specific combinations of red and blue light wavelengths that studies have shown stimulate or suppress melatonin, which influences sleep cycles

Bombardier Business Aircraft has unveiled the Soleil lighting system, the industry’s most advanced cabin lighting technology, on the award-winning Global 7500 business jet. Designed and developed exclusively for the Global 7500 aircraft, the innovative Soleil lighting system is aviation’s first circadian rhythm-based cabin lighting technology fully integrated with the Flight Management System, and it introduces the revolutionary Dynamic Daylight Simulation feature, which can help combat jet lag.

“We’re pleased to showcase the innovative Soleil lighting system on the Global 7500 aircraft,” said Peter Likoray, Senior Vice President, Sales and Marketing, Bombardier Business Aircraft. “The Global 7500 jet is the world’s longest range purpose-built business aircraft with an unrivalled cabin experience. Along with the aircraft’s master suite with a full bed, stand-up shower and exceptionally smooth ride, the Soleil lighting system helps passengers arrive at their destination feeling more rested and refreshed.”

The Soleil lighting system’s Dynamic Daylight Simulation uses specific combinations of red and blue light wavelengths that studies have shown to help stimulate or suppress the production of melatonin – which assists in regulating the sleep-wake cycle and can help contribute to synchronizing passengers’ circadian rhythms to the time at their destination.

The Soleil lighting system is fully integrated into theGlobal 7500 aircraft’s nice Touch cabin management system, and can also be customized to a passenger’s preference for either extended sleep or productivity via the system’s unique circadian adjustment setting. The Soleil lighting system can also conveniently be programmed to schedule the optimal times for meal services, allowing the cabin crew to better prepare and plan more efficiently.

Incorporating twice the number of individual LEDs than other cabin lighting methods, the Soleil lighting system delivers the most vivid and high-definition colour rendering index (CRI) of any lighting system available today.

The Soleil lighting system is ideally suited to the Global 7500 aircraft and its long-range mission profile. Proven to be the highest-performing aircraft in the industry, the Global 7500 business jet has demonstrated the capability for long-haul flights over 16 hours. With its unparalleled performance, the Global 7500 business jet can access the most expansive city pairings, including such routes as New York to Hong Kong, and Singapore to San Francisco,* and the Soleil lighting system is the perfect complement to help combat jet lag and maximize comfort and relaxation while traversing a multitude of time zones.

The Soleil lighting system is a standard feature on the Global 7500 aircraft, which entered into service in December 2018. With unmatched speed and range, the Global 7500 business jet continues to blaze a trail in this new market segment, setting the bar for excellence in the world of business aviation.

Winner of the 2019 Aviation Week Grand Laureate Award and a Red Dot award for design, the Global 7500 jet offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. Featuring a full-size kitchen and four true living spaces, the Global 7500 aircraft sets the benchmark for the most exceptional cabin interior. The aircraft offers unprecedented innovative features: Bombardier’s patented Nuage seat, meticulously designed for maximum comfort, and the revolutionary nice Touch CMS, a new way to connect with the Global 7500 aircraft cabin through the Bombardier Touch dial, featuring business aviation’s first application of an OLED display.

Bombardier Celebrates Donation of a CRJ200 Aircraft to Centennial College

Provided by Bombardier Inc

April 25, 2019 Toronto Commercial Aircraft,  Press Release

  • The CRJ200 is the first and only commercial aircraft at the Centennial College Downsview campus
  • The new Downsview Centennial College’s campus will also serve as an anchor for the future aerospace hub under development in the Greater Toronto Area

In parallel to the opening of Centennial College Downsview Campus Centre for Aerospace and Aviation, Bombardier Commercial Aircraft announced today the donation of a CRJ200 aircraft to the Centennial College Aviation Program at its new campus based in Downsview, to be used in the education and training of the future generation of aerospace professionals.

The CRJ200 is the first one of its kind to grace the Centennial College’s Downsview facility hangar, it is also the biggest plane as well as the first ever commercial aircraft to be received at the site. The aircraft will allow students not only to have a hands on experience with CRJ Series technology, but also to learn on a bigger scale, furthering the level of expertise made available through the Centennial College Aviation Program.

“Advancement and innovation have always been at the forefront of Bombardier’s values, says Fred Cromer, President, Bombardier Commercial Aircraft, which is why we are honored to present Centennial College with this CRJ200 aircraft. This donation represents not only an opportunity for the Toronto aerospace sector to grow but rather for the whole of Canadian Aerospace, which will surely benefit from it today. We are at a crucial moment in Canada where the aerospace industry is building up steady growth and the demand for skilled workers is also rising. At Bombardier, we want to do anything we can to help and improve present and future generations of aerospace workers in Canada.”

This donation will further re-inforce the collaboration of Centennial College and the Downsview Aerospace Innovation and Research Consortium (DAIR) aimed at servicing the Greater Toronto Area. The DAIR Hub projects to strengthen the Toronto, Ontario, and Canada aerospace sector by increasing collaborative research and development, accelerating technology adoption, helping small and medium sized enterprises scale-up, and addressing the projected skills shortage in the industry through training and re-training.

The DAIR Hub is expected to help Canada stay competitive defending its leadership position on the world stage and propel Canadian aerospace forward. This initiative will also continue Downsview’s tradition of world-class aerospace and aviation, a legacy that began with De Havilland nearly a hundred years ago.

Bombardier Provides Preliminary First Quarter 2019 Financial Results, Updates 2019 Guidance

Provided by Bombardier Inc

April 25, 2019 Montréal Bombardier Inc.,  Press Release

First Quarter 2019 Consolidated Performance(1)

  • Revenues expected to be ~$3.5B; driven lower by timing of aircraft deliveries, slower project ramp up at Transportation, and unfavourable currency translation
  • Adjusted EBITDA(2) and adjusted EBIT(2) expected to be ~$265M and ~$170M, respectively, due to lower revenues and revised cost estimates on Transportation projects
  • Free cash flow usage(2) expected to be ~$1.0B, supporting working capital investments

2019 Guidance(3) Update

  • Consolidated revenue guidance now expected to be ~$1.0B lower at ~$17.0B, representing ~10% growth year over year, excluding currency effects and divestitures
  • Aerospace businesses on track; Consolidated revenue guidance changed mainly due to revised Transportation outlook
  • Consolidated adjusted EBITDA expectations reduced from $1.65-1.80B to $1.50-1.65B, representing a ~20% increase year over year
  • Consolidated adjusted EBIT expectations reduced from $1.15-1.25B to $1.0-1.15B
  • Consolidated free cash flow guidance remains unchanged at breakeven ±$250M
  • Business Aircraft still expected to deliver 150-155 aircraft; Commercial Aircraft deliveries now expected to be 30 vs 35 aircraft as the sale of the Q400 is now anticipated to close mid-year 
  • Transportation revenue expectations revised from ~$9.5B to ~$8.75B, and adjusted EBIT margin from ~9% to ~8%

All amounts in this press release are in U.S. dollars, and all amounts in the tables are in millions of U.S. dollars, unless otherwise indicated.

Bombardier (TSX: BBD.B) announced today preliminary financial results for the first quarter of 2019 and provided updates to its full year revenue and earnings outlook.

First quarter 2019 adjusted EBITDA and adjusted EBIT are expected to be approximately $265 million and $170 million, respectively, on revenues of approximately $3.5 billion. Free cash flow usage in the first quarter is anticipated to be approximately $1.0 billion, supporting the intense ramp-up of key rail projects and Global 7500 aircraft deliveries in the second half of the year.

Preliminary Business Segment Results for the first quarter ended March 31, 2019

RevenuesAdjusted EBIT
Business Aircraft~$970~$74
Commercial Aircraft~$240~$22
Aerostructures and Engineering Services~$470~$66
Transportation~$2,100~$83
Corporate and Elimination~$(280)~$(75)
Consolidated~$3,500~$170

“We had a soft first quarter driven by the timing of aircraft deliveries, foreign exchange headwind and a slower production ramp-up at Transportation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We expect to recover and meet our aircraft delivery and financial performance targets for the year in our aerospace businesses. At Transportation, we are adjusting our 2019 guidance to reflect both changes to our production ramp up and cost pressure from a few challenging legacy projects as we continue to drive our transformation.”

Business Aircraft deliveries for the quarter totaled 24 aircraft (2 light, 14 medium, and 8 large jets) with a strong revenue book-to-bill(4) of 1.6 contributing to an industry-leading $14.9 billion backlog. With expected deliveries more heavily weighted to the second half of the year, Business Aircraft’s full year guidance remains unchanged, with revenues of approximately $6.25 billion on 150-155 aircraft deliveries, and an adjusted EBIT margin of approximately 7.5%.

Commercial Aircraft delivered 4 aircraft (3 CRJs and 1 Q400) during the first quarter while recording orders for 16 aircraft. Commercial Aircraft’s expected deliveries for the year are lowered to approximately 30 aircraft as a result of the closing of the Q400 divestiture, which is now expected mid-year. Revenue guidance for the year is correspondingly adjusted to approximately $1.15 billion, with no change to adjusted EBIT estimates (loss of approximately $125 million). 

Aerostructures and Engineering Services guidance remains unchanged for the year, as the integration of the Global 7500wing operations is progressing on plan, with revenues ranging between $2.25 billion and $2.50 billion, and approximately 7.5% adjusted EBIT margin.

At Transportation, revenues for the first quarter are expected to be 11% lower year over year.  Excluding the negative currency impact, revenues for the quarter are expected to be down 5% year over year. These lower revenues reflect a slower production ramp-up on certain large projects as the Company better synchronizes its production output to customer requirements and delivery schedules. While negatively impacting revenue recognition, these changes will result in more efficient working capital and inventory management.

Bombardier now expects Transportation’s revenues to be $750 million lower than its original full-year guidance, at approximately $8.75 billion. This reduction is driven by approximately $500 million from slower production ramp-up, which defers revenues, and approximately $250 million of unfavourable currency impact at current rates.(5) On a constant currency basis, Transportation’s revised 2019 revenue guidance reflects approximately 3.5% growth over 2018.

Adjusted EBIT margins at Transportation in the first quarter are expected to be approximately 4%, reflecting the cost absorption impact of lower revenues and revised cost estimates on certain late stage contracts. The ongoing phasing out of challenging legacy projects and delivery ramp-up are expected to support Transportation’s return to normalized levels. Accordingly, Transportation’s adjusted EBIT margin guidance for the full year is revised from approximately 9% to approximately 8%.

Transportation ended the quarter with a backlog of approximately $33.8 billion. Book-to-bill for the quarter was 0.8 and is expected to improve throughout the year based on a strong pipeline of opportunities.

2019 Guidance by Business Segment

Revenues Adjusted EBIT
Updated GuidanceOriginal GuidanceVariationUpdated GuidanceOriginal GuidanceVariation
Business Aircraft~$6,250~$6,250No Change~7.5%~7.5%No Change
Commercial Aircraft~$1,150~$1,400$(250)~$(125)~$(125)No Change
Aerostructures and Engineering Services$2,250-2,500$2,250-2,500No Change~7.5%7.5%No Change
Transportation~$8,750~$9,500$(750)~8.0%~9.0%(100) bps
Consolidated~$17,000≥$18,000$(1,000)$1,000-1,150$1,150-1,250$(100-150)

Consolidated 2019 Guidance

Bombardier’s consolidated revenue guidance for 2019 has been adjusted to reflect revised expectations at Transportation and Commercial Aircraft. Full year revenues are now expected to be approximately $17.0 billion, approximately $1.0 billion lower than originally anticipated. Year over year, the revised guidance represents approximately 10% organic growth over 2018, excluding currency effects and divestitures.

The revenue guidance change is driven by a combination of (i) approximately $250 million in lower revenues from the earlier than anticipated closing of the sale of Business Aircraft’s training activities and the Q400 program – which is now expected to close mid-year; and (ii) approximately $750 million in lower revenues at Transportation, driven by our production ramp-up adjustments and unfavourable currency impact.  

While earnings expectations across the aerospace businesses are unchanged, Transportation’s adjusted EBIT guidance is reduced by approximately $150 million for the year. As a result, the Company now expects to report full year consolidated adjusted EBITDA of $1.50-1.65 billion, implying growth of almost 20% year over year. Consolidated adjusted EBIT guidance is also revised, and is now expected at $1.0-1.15 billion.

Free cash flow guidance for the full year remains unchanged, at breakeven plus or minus $250 million, as Global 7500 aircraft and key Transportation project deliveries are expected to accelerate in the second half of the year

“The transformation of our aerospace businesses remains fully on track as we begin the fourth year of our turnaround plan. The major risks have been retired, our growth programs are in service and our aftermarket strategy is well underway,” continued Bellemare. “At Transportation, we’ve strengthened our order book, refreshed our portfolio, streamlined our footprint and the team is optimizing our operations to execute on the backlog ahead of us. While this process presents challenges, the business fundamentals and growth potential at Transportation remain very strong.”

Bombardier will release its complete first quarter 2019 financial results on Thursday May 2, 2019, before markets open and host a conference call for investors and analysts at 8:00 am EDT that same day.

bps: basis points

  1. Reflects the adoption of IFRS 16, Leases, effective January 1, 2019, using the modified retrospective approach. Refer to the Accounting and reporting developments section in Other in the Corporation’s MD&A of the financial report for the year ended December 31, 2018 for further information on the adoption of IFRS 16.
  2. Non-GAAP financial measures. See Caution regarding non-GAAP measures at the end of this press release. Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labeled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT” and “EBITDA”.
  3. See the forward-looking statements disclaimer.
  4. Ratio of new orders over revenues.
  5. Assuming foreign exchange rates remain stable at approximately 1.12 for the conversion of the amounts in euros to U.S. dollars.

Bombardier Commercial Aircraft Enhances Customer Support in Africa and the Middle East with Relocation of its Q Series Aircraft Regional Support Team

Provided by Bombardier Inc.

  • Customer support team for the Q Series Aircraft Program will be located alongside longstanding customer South African Express Airways and close to O.R. Tambo International Airport
  • Customer support team for the CRJ Series Aircraft Program will continue to support its customers in its current location

April 23, 2019 Toronto Commercial Aircraft,  Press Release

Bombardier Commercial Aircraft announced today that it will relocate its Q Series aircraft regional support team from Lanseria International Airport to Airways Park, close to O.R. Tambo International Airport. This move will co-locate the regional support team for the Q Series aircraft with Bombardier’s longstanding customer, South African Express Airways. The CRJ Series Aircraft Program will maintain support to the region from its current location in Johannesburg, South Africa.

The regional support teams serve fleets of approximately 170 Dash 8/Q Series turboprops and about 70 CRJ Series regional jets in Africa and the Middle East. The relocation of the team supporting the fleet of Q Series aircraft will facilitate faster response times by team members when they need to travel to support customers and operators throughout the region.

Bombardier Commercial Aircraft has recorded firm orders for more than 1,300 Dash 8/Q Series and 1,900 CRJ Series aircraft, and the worldwide fleet is supported by teams in Africa and the Middle East, along with teams based in Canada (headquarters), Australia, Germany, India and Japan.

“We have enjoyed a 25-year relationship with Bombardier from the inception of South African Express until the present day. We are therefore delighted that Bombardier is positioning its Q Series aircraft regional support team to work more closely with our team at Airways Park, as well as with their other customers operating from O.R. Tambo International Airport,” said Siza Mzimela, Chief Executive Officer, South African Express Airways. “We’re confident that the proximity to our team and our hub will augment our operation and that we will benefit from Bombardier’s expertise as we work to further optimize the efficiency of our fleet and enhance our passengers’ experience.”

“The relocation of our Africa and Middle East Q Series regional support team is another step in our ongoing efforts to enhance our accessibility and support to customers and operators in the region,” said Todd Young, Vice President and General Manager, Head of Q Series Aircraft Program, Bombardier Commercial Aircraft. “O.R. Tambo International Airport serves as the primary airport for travel to and from South Africa, so it fits with our strategy to position our regional support teams where they are best able to offer timely support before, during and beyond an aircraft’s entry into service.”

“Our regional support teams provide quick-response problem solving, engineering expertise and tailored plans to meet our customers’ business plans,” said Charles Comtois, Head of CRJ Series Aircraft Program, Bombardier Commercial Aircraft. “Regional support team members also act as conduits to connect our customers to our extensive global network of Service Centres, Authorized Service Facilities, Parts Depots and Training Facilities.”