Zlecone: Bombardier Announces Financial Results for the First Quarter Ended March 31, 2012

MONTREAL, QUEBEC - (Marketwire - May 10, 2012) - (TSX: BBD.A)(TSX: BBD.B)

(All amounts in this press release are in U.S. dollars unless otherwise indicated.)

- Revenues of $3.5 billion, compared to $4.7 billion last fiscal year

- EBIT of $215 million, or 6.1% of revenues, compared to $312 million, or 6.7%, last fiscal year

-Net income of $190 million, or diluted EPS of $0.10, compared to $220 million, or diluted EPS of $0.12, last fiscal year

- Free cash flow usage of $712 million, compared to a usage of $409 million last fiscal year

- Cash position of $3.2 billion as at March 31, 2012, compared to $3.4 billion as at December 31, 2011

- Backlog of $55.2 billion as at March 31, 2012, compared to $53.9 billion as at December 31, 2011

- Closing of a new revolving credit facility of EUR500 million ($668 million) and issuance of $500 million unsecured notes

- In May 2012, signature of a letter of intent with WestJet for up to 45 Q400 NextGen turboprops

Bombardier (TSX: BBD.A)(TSX: BBD.B) today released its financial results for the first quarter ended March 31, 2012. Revenues totalled $3.5 billion, compared to $4.7 billion last fiscal year. Earnings before financing expense, financing income and income taxes (EBIT) amounted to $215 million, compared to $312 million last fiscal year, representing an EBIT margin of 6.1%, compared to 6.7% for the corresponding period last fiscal year.

Net income reached $190 million, compared to $220 million for the corresponding period last fiscal year. Diluted earnings per share (EPS) was $0.10 for the three-month period ended March 31, 2012, compared to diluted EPS of $0.12 for the corresponding period last fiscal year. The overall backlog reached $55.2 billion, compared to $53.9 billion as at December 31, 2011.

Free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) totalled $712 million, compared to a usage of $409 million for the corresponding period last fiscal year. The cash position stood at $3.2 billion as at March 31, 2012, compared to $3.4 billion as at December 31, 2011.

"As anticipated, we had lower revenues in the first quarter," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. "At Aerospace, the entry into service of the Vision Flight Deck on the Global 5000 and Global 6000 aircraft and the resulting transition, as well as lower deliveries of commercial aircraft, had an impact on our revenues. Nevertheless, we were able to contain costs and maintain our profitability. We had a solid level of new orders in business jets and we're starting to see momentum in commercial aircraft orders which led to an increased backlog of $23.3 billion."

"In Transportation, the results were affected by the completion of some contracts, mostly in Asia-Pacific, and the careful ramp-up of deliveries on complex new orders. The order activity remains quite strong in most regions, particularly in North America and Europe."

"We have a solid backlog of $55.2 billion giving us good visibility on the future. 2012 is an exciting year. We're making good progress on our development programs as we target the first flight of the CSeries aircraft by the end of this year, and we're in an excellent position in the rail transportation market," concluded Mr. Beaudoin.

During the first quarter of 2012, Bombardier issued $500 million of unsecured notes and entered into a new unsecured EUR500 million ($668 million) revolving credit facility available for Bombardier Transportation for cash drawings. Both transactions were oversubscribed, showing the markets' confidence in the Corporation's business plan. Furthermore, in April 2012, the availability periods of Bombardier Transportation and Bombardier Aerospace's letter of credit facilities were extended for an additional year to May 2015 and June 2015 respectively. Also in April, the maturity date for the $750 million unsecured revolving credit facility was extended by one year to June 2015.

Bombardier's Board of Directors approved yesterday, at its regularly scheduled meeting, the implementation of a new normal course issuer bid, pursuant to which the Corporation would be authorized to purchase up to 5% of the issued and outstanding Class B shares (subordinate voting) and 5% of the issued and outstanding Class A shares (multiple voting), following expiry of its current normal course issuer bid on June 16, 2012, subject to the approval of the Toronto Stock Exchange.

Bombardier Aerospace

At Bombardier Aerospace, revenues totalled $1.5 billion, compared to $2.2 billion for the first quarter last fiscal year, while EBIT reached $91 million, or 6.1% of revenues, compared to $141 million, or 6.4%, for the first quarter last fiscal year. Free cash flow usage of $572 million compared to a usage of $168 million for the corresponding period last year. Bombardier Aerospace delivered 37 aircraft for the first quarter ended March 31, 2012, compared to 61 for the corresponding period last fiscal year and received 68 net orders, compared to 86 for the three-month period ended April 30, 2011. Its backlog increased to $23.3 billion as at March 31, 2012, compared to $22 billion as at December 31, 2011.

During the first quarter of 2012, the business aircraft division received net orders for 40 aircraft, including a firm order for five Global 6000 jets from AVWest of Australia, for a value of $293 million, based on list price. Following the certification from the European Aviation Safety Agency (EASA) and the U.S. Federal Aviation Administration (FAA), the Vision Flight Deck entered into service on schedule in March 2012, on the Global 5000 and Global 6000 aircraft.

On the commercial aircraft front, Bombardier Aerospace has improved its local presence in emerging markets leading to 28 orders coming from a variety of countries. During the quarter, the group received, notably, an order from PrivatAir of Switzerland for five CS100 aircraft with five options; one order from PT. Garuda Indonesia (Persero) Tbk. for six CRJ1000 NextGen regional jets with 18 options; an order for eight Q400 NextGen aircraft with 12 options from Eurolot S.A. of Poland; and an order for five Q400 NextGen aircraft from Ethiopian Airlines. The total value of these firm orders, based on list prices, amounts to more than $1 billion. Subsequent to the quarter, in May 2012, WestJet from Canada signed a letter of intent to purchase 20 Q400 NextGen turboprops with the option to purchase a further 25.

Also during the quarter, the group signed a definitive agreement with Commercial Aircraft Corporation of China Ltd. (COMAC) to collaborate on commonality projects, building on the complementary nature of COMAC's C919 aircraft and its CSeries aircraft to help maximize both parties' cost savings and market shares.

Bombardier Transportation

For the first quarter ended March 31, 2012, Bombardier Transportation's revenues totalled $2 billion, compared to $2.5 billion last fiscal year. EBIT reached $124 million, or 6.2% of revenues, for the first quarter ended March 31, 2012, compared to $171 million, or 6.9%, for the corresponding period last fiscal year. Free cash flow usage of $100 million compared to a usage of $168 million last fiscal year. Bombardier Transportation reported new orders worth $1.2 billion for the first quarter, representing a book-to-bill ratio of 0.6, compared to $1.2 billion and a book-to-bill ratio of 0.5, for the corresponding period last fiscal year. The order backlog stood at $31.9 billion as at March 31, 2012, the same level as at December 31, 2011.

During the first quarter of 2012, Bombardier Transportation received an order from Deutsche Bahn AG, of Germany, for 16 four-car TWINDEXX double-deck trains, valued at $208 million. This order is part of a framework agreement signed in 2008, and is an example of the success of the group's strategy to win key framework contracts in Europe.

In April 2012, to continue on its long-term investment in emerging markets, the group inaugurated a state-of-the-art monorail vehicle manufacturing facility in Hortolandia, Brazil. This new production site is the group's global production centre for Monorails, serving the fast-growing market in Brazil as well as supporting export opportunities in Latin America and around the world.

FINANCIAL HIGHLIGHTS

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

For the three-month

periods ended(1)---------------------------------------March 31, 2012---------------------------------April 30, 2011

----------------------------------------------------------BA---------BT--------Total-----------------BA--------BT-------Total

Results of operations

Revenues----------------------------------------$1,499----$2,006------$3,505--------$2,188----$2,473-----$4,661

Cost of sales--------------------------------1,260--------1,647--------2,907------------1,857------2,068------3,925

-

Gross margin----------------------------------239-----------359----------598----------------331--------405---------736

SG&A -------------------------------------------161-----------203----------364----------------160--------203---------363

R&D------------------------------------------------31------------34------------65------------------33---------31------------64

Other income---------------------------------(44)-----------(2)------------(46)----------------(3)-------- - -------------(3)

-

EBIT---------------------------------------------$91----------$124----------215---------------$141 $----171----------312

Financing expense----------------------------------------------------------152--------------------------------------------177

Financing income----------------------------------------------------------(152)-----------------------------------------(141)

-

EBT------------------------------------------------------------------------------215-------------------------------------------276

Income taxes-----------------------------------------------------------------25----------------------------------------------56

-

Net income-----------------------------------------------------------------$190-------------------------------------------$220

-

Attributable to:

Equity holders of Bombardier Inc.------------------------------------$185---------------------------------------$220

Non-controlling interests-------------------------------------------------5-------------------------------------------- - ---

------------------------------------------------------------------------------------$190--------------------------------------$220

-

EPS (in dollars):

Basic and diluted-----------------------------------------------------------$0.10-------------------------------------$0.12

Segmented free cash

flow usage--------------------------------$(572)---------$(100)--------$(672)--------$(168)-------$(168)-----$(336)

-

Net income taxes and

net interest paid-------------------------------------------------------------(40)-----------------------------------------(73)

-

Free cash flow usage----------------------------------------------------$(712)--------------------------------------$(409)

BA : Bombardier Aerospace; BT : Bombardier Transportation

(1) Effective December 31, 2011, the Corporation changed its financial year-end from January 31 to December 31. As a result, the comparative three-month period ended April 30, 2011 is comprised of three months of results of BA for the period from February to April and of BT for the period from January to March.

FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2012

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $3.5 billion for the first quarter ended March 31, 2012, compared to $4.7 billion for the same period last year.

For the first quarter ended March 31, 2012, EBIT reached $215 million, or 6.1% of revenues, compared to $312 million, or 6.7%, for the corresponding period the previous year.

Net financing expense amounted to nil for the first quarter of the current fiscal year, compared to $36 million for the corresponding period last fiscal year. The decrease is mainly due to an interest income representing the interest portion amounting to $17 million of a gain of $40 million upon the successful resolution of a litigation in connection with the Canadian Income Tax Act and lower interest expense on long-term debt after effect of hedges.

The effective income tax rate was 11.6% for the three-month period ended March 31, 2012, compared to the statutory income tax rate in Canada of 26.7%. The lower effective tax rate was mainly due to the positive impact of the recognition of income tax benefits related to tax losses and temporary differences, partially offset by unrecognized tax benefits.

Net income amounted to $190 million, or diluted EPS of $0.10, for the first quarter ended March 31, 2012, compared to $220 million, or diluted EPS of $0.12, for the period ended April 30, 2011.

For the three-month period ended March 31, 2012, free cash flow usage totalled $712 million, compared to a usage of $409 million for the corresponding period the previous year.

As at March 31, 2012, Bombardier's order backlog reached $55.2 billion, compared to $53.9 billion as at December 31, 2011.

Bombardier Aerospace

- Revenues of $1.5 billion

- EBIT of $91 million, or 6.1% of revenues

- EBITDA of $141 million, or 9.4% of revenues

- Free cash flow usage of $572 million

- 68 net orders

- Order backlog of $23.3 billion

Bombardier Aerospace's revenues amounted to $1.5 billion for the three-month period ended March 31, 2012, compared to $2.2 billion for the corresponding period the previous year. This decrease is mainly due to lower deliveries of business aircraft mainly in large business jets due to the transition to the Global 5000 and Global 6000 aircraft with the new Vision Flight Deck, which entered into service at the end of March 2012, and lower deliveries of commercial aircraft mainly due to lower production rates and to the timing of financing availability for a customer.

For the first quarter ended March 31, 2012, EBIT reached $91 million, or 6.1% of revenues, compared to $141 million, or 6.4%, for the corresponding period the previous year. Excluding the successful resolution of a litigation in connection with the Canadian Income Tax Act amounting to $23 million, the EBIT margin decreased by 1.9 percentage points. The decrease is mainly due to lower absorption of selling, general and administrative (SG&A) and research and development (R&D) expenses and amortization of PP&E due to the abnormally low level of revenues, and the negative impact of higher exchange rates, after giving effect to hedges, for the Canadian dollar against the U.S. dollar. This was partially offset by higher net selling prices for business and commercial aircraft, the mix between business and commercial aircraft deliveries, higher margins from service activities, and a net positive variance on financial instruments carried at fair value and provisions for credit and residual value guarantees.

Free cash flow usage totalled $572 million for the first quarter ended March 31, 2012, compared to a usage of $168 million for the corresponding period last fiscal year. This $404-million decrease is mainly due to a negative period-over-period variation in net change in non-cash balances related to operations, higher net additions to PP&E and intangible assets, due to our significant investments in new products, and lower earnings before financing expense, financing income, income taxes and amortization (EBITDA).

For the quarter ended March 31, 2012, aircraft deliveries totalled 37 units, compared to 61 for the three-month period ended April 30, 2011. The 37 deliveries consisted of 29 business, 7 commercial and 1 amphibious aircraft (37 business, 23 commercial and 1 amphibious aircraft for the corresponding period last fiscal year).

Bombardier Aerospace received 68 net orders during the quarter ended March 31, 2012, compared to 86 during the corresponding period the previous year. The 68 net orders consisted of 40 net orders for business aircraft and 28 orders for commercial aircraft (77 net orders for business aircraft (including an order of 50 Global aircraft from NetJets), 5 orders for commercial aircraft and 4 orders for amphibious aircraft for the period ended April 30, 2011).

Bombardier Aerospace's order backlog reached $23.3 billion as at March 31, 2012, compared to $22 billion as at December 31, 2011. The 5.9% increase is mainly due to an increase in orders for large business aircraft, turboprops and commercial jets.

Bombardier Transportation

- Revenues of $2 billion

- EBIT of $124 million, or 6.2% of revenues

- EBITDA of $156 million, or 7.8% of revenues

- Free cash flow usage of $100 million

- New order intake totalling $1.2 billion (book-to-bill ratio of 0.6)

- Order backlog of $31.9 billion

Bombardier Transportation's revenues amounted to $2 billion for the three-month period ended March 31, 2012, compared to $2.5 billion for the corresponding period last year. The revenues for the first quarter of 2012 have been affected by the completion of some contracts, mostly in Asia-Pacific and, to a lesser extent, in Europe, while major orders received in these regions in the last quarters are still in the start-up phase.

For the first quarter ended March 31, 2012, EBIT totalled $124 million, or 6.2% of revenues, compared to $171 million, or 6.9%, for the corresponding quarter the previous year. The 0.7 percentage-point decrease is mainly due to lower absorption of SG&A and R&D expenses and a lower overall gross margin in rolling stock, due to execution issues in some contracts; partially offset by a higher gross margin in services and system and signalling due to overall better contract execution, and a favourable product mix.

Free cash flow usage for the quarter ended March 31, 2012 totalled $100 million, compared to a usage of $168 million for the corresponding period last fiscal year. The $68-million improvement is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations, partially offset by a lower EBITDA.

The order intake for the first quarter ended March 31, 2012 was $1.2 billion, reflecting a book-to-bill ratio of 0.6, compared to $1.2 billion and a book-to-bill ratio of 0.5, for the corresponding period last fiscal year.

Bombardier Transportation's backlog stood at $31.9 billion as at March 31, 2012, same level as at December 31, 2011, as higher revenues than order intake were offset by the strengthening of most foreign currencies versus the U.S. dollar as at March 31, 2012, compared to December 31, 2011, mainly the euro and pound sterling.

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 June 30, 2012 to the shareholders of record at the close of business on June 15, 2012.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on June 15, 2012 also have a right to a priority dividend of $0.000390625 Cdn.

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 March 15 and on April 15, 2012.

Series 3 Preferred Shares

A quarterly dividend of $0.32919 Cdn per share on Series 3 Preferred Shares is payable on July 31, 2012 to the shareholders of record at the close of business on July 13, 2012.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on July 31, 2012 to the shareholders of record at the close of business on July 13, 2012.

About Bombardier

Bombardier is the world's only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montreal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2011, we posted revenues of $18.3 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

CRJ, CRJ1000, CS100, CSeries, Global, Global 5000, Global 6000, Learjet 85, NextGen, Q400,The Evolution of Mobility, TWINDEXX and Vision Flight Deck are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the Interim consolidated financial statements are available at http://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, guidance, targets, goals, priorities, markets and strategies, financial position, 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; 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", "continue" or "maintain", 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 Guidance and forward-looking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") in the Corporation's annual report for the fiscal year ended December 31, 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, exposure to credit risk, 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 this press release 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 (generally accepted accounting principles (GAAP)). 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. Refer to the section Non-GAAP financial measures in the MD&A for definitions and reconciliations to the most comparable IFRS measures.

CONTACTS:

Isabelle Rondeau

Director

Communications

Bombardier Inc.

phone: +514-861-9481

-

Shirley Chenier

Senior Director

Investor Relations

Bombardier Inc.

phone: +514-861-9481

www.bombardier.com

Źródło informacji: Thomson Reuters