Bombardier Aerospace presents third quarter results
Bombardier Aerospace’s revenues increased by 29% to reach $2.6 billion for the three-month period ended September 30, 2014, compared to $2.0 billion for the same period last fiscal year. EBIT totalled $74 million, or 2.9% of revenues, for the third quarter, compared to $86 million, or 4.3%, for the same period last fiscal year. EBIT before special items totalled $137 million, or 5.3% of revenues, compared to $86 million, or 4.3%, for the same period last fiscal year. Free cash flow usage amounted to $180 million (including net investments to PP&E and intangible assets of $415 million) for the third quarter ended September 30, 2014, compared to a usage of $406 million (including net investments to PP&E and intangible assets of $585 million) for the same period last fiscal year.
Bombardier Aerospace delivered a total of 71 aircraft during the third quarter ended September 30, 2014, compared to 45 for the same period last fiscal year, and received 76 net orders, compared to 26 for the same period last fiscal year. Bombardier Aerospace’s backlog reached a level of $37.9 billion as at September 30, 2014, compared to $37.3 billion as at December 31, 2013.
In September, the CSeries aircraft resumed flight testing and the program is progressing well. More than 120 hours of flight were recorded since then by two Flight Test Vehicles (FTV), bringing the total number of flight hours to 450. FTV2 is now operating its fly-by-wire in normal mode and flight testing continues as planned. The entry-into-service (EIS) for the CS100 aircraft is targeted for the second half of 2015 and the CS300 aircraft’s EIS will follow approximately six months afterwards.
Commercial aircraft received a firm order for 40 CS300 aircraft with options for an additional 10 CS300 aircraft from a wholly owned affiliate of Macquarie AirFinance. The firm order is valued at $3.1 billion based on list price. This order brings the total CSeries firm orders and other commitments to 563, with 21 customers in 18 countries, including 243 firm orders.
As part of the new organizational structure announced on July 23, 2014, a workforce reduction took place over the past weeks and a restructuring charge of $63 million was recorded as a special item. This workforce reduction is expected to generate approximately $200 million in annual cost savings.
Subsequent to the end of the quarter, Bombardier Aerospace launched the new Challenger 650 aircraft, the evolution of the Challenger 605 aircraft. The Challenger 650 aircraft will offer increased performance capabilities from enhanced engines, an entirely new interior and the Bombardier Vision flight deck technology. Its EIS is scheduled for 2015.