Zlecone: Bombardier Announces Financial Results for the Third Quarter Ended October 31, 2010

- Consolidated revenues of $4 billion, compared to $4.6 billion last fiscal year

- EBITDA of $332 million, compared to $388 million last fiscal year

- EBIT of $228 million, or 5.7% of revenues, compared to $262 million, or 5.7%, last fiscal year

- Net income of $143 million, compared to $168 million last fiscal year

- Earnings per share of $0.08, compared to $0.09 last fiscal year

- Free cash flow usage of $132 million, compared to a free cash flow of $72 million last fiscal year

- Good cash position at $2.7 billion

- Strong backlog of $48.9 billion

- Launch of the Global 7000 and Global 8000 business jets

MONTREAL, QUEBEC - (Marketwire - December 2, 2010) - Bombardier Inc. (TSX: BBD.A)(TSX: BBD.B) (All amounts in this press release are in U.S. dollars unless otherwise indicated.)

Bombardier today reported its financial results for the third quarter ended October 31, 2010. Revenues amounted to $4 billion compared to $4.6 billion last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled $228 million, compared to $262 million last fiscal year, while the EBIT margin reached 5.7%, the same level as last year.

Net income amounted to $143 million, compared to $168 million for the same period last fiscal year. Diluted earnings per share (EPS) was $0.08, compared to $0.09 last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) usage totalled $132 million for the third quarter, compared to a free cash flow of $72 million for the same period last fiscal year. The cash position amounted to $2.7 billion as at October 31, 2010, compared to $3.4 billion as at January 31, 2010. The overall backlog stood at a strong $48.9 billion, compared to $43.8 billion as at January 31, 2010.

"Once again, this quarter, Bombardier Transportation had a good level of new orders with a book-to-bill ratio of 1.7," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc." This translates into a record backlog of $32.7 billion for the group, a 21% increase since the beginning of the year. Breakthrough orders were received, including a first order in Europe for our successful ZEFIRO family of high speed and very high speed trains and, in Brazil, for a 24 kilometre monorail system."

"The environment in Aerospace remained difficult with leading indicators sending mixed signals as to the timing of a full recovery. Nevertheless, we continued to work on our development programs and announced, in September, the launch of the Global 7000 and Global 8000 jets."

"As the global economy firms up, our product strategy will position us well to expand our market share as well as to increase our penetration of emerging markets," concluded Mr Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues amounted to $1.8 billion, compared to $2.1 billion last fiscal year. EBIT totalled $87 million, or 4.7% of revenues, compared to $103 million, or 5%, for the same period last fiscal year. Free cash flow usage was $234 million for the third quarter ended October 31, 2010, compared to a free cash flow of $61 million for the same period last fiscal year. The group received 23 net orders during the third quarter ended October 31, 2010, compared to seven for the same period last fiscal year, while delivering 53 aircraft, compared to 61 last fiscal year. The backlog stood at $16.2 billion as at October 31, 2010, compared to $16.7 billion as at January 31, 2010.

While both business and commercial aircraft markets are still experiencing challenging conditions, the fundamentals are strong in the long term for both segments. As such, Bombardier Aerospace continued to invest in its product development and launched two new business jets, the Global 7000 and Global 8000 aircraft.

Development of the CSeries aircraft program is on schedule and, subsequent to quarter end, the CRJ1000 NextGen aircraft was certified by Transport Canada and the European Aviation Safety Agency, and first deliveries will take place in the fourth quarter of this fiscal year.

On the Learjet 85 business aircraft front, the program and development of the manufacturing footprint are progressing well. The Wichita, Kansas, final assembly plant is undergoing an expansion and, in October 2010, we inaugurated a state-of-the-art component manufacturing facility in Queretaro, Mexico, for the Learjet 85 aircraft major composite structures.

Bombardier Transportation

Bombardier Transportation revenues amounted to $2.2 billion, compared to $2.5 billion for the same period last fiscal year. EBIT totalled $141 million, compared to $159 million a year ago, while EBIT margin increased to 6.5% from 6.3% last fiscal year. Free cash flow reached $104 million, compared to $32 million last fiscal year. The order backlog reached a record $32.7 billion as at October 31, 2010, compared to $27.1 billion as at January 31, 2010.

The order intake for the quarter reached $3.7 billion, covering a wide spectrum of countries, including a major order to design, supply and install a 24-kilometre INNOVIA Monorail 300 system in Sao Paulo, Brazil, for Companhia do Metropolitano de Sao Paulo, for a value of $747 million. The group also signed a contract with Trenitalia of Italy for the delivery of 50 very high speed trainsets (400 cars) V300ZEFIRO, for a value of $889 million. Bombardier Transportation was also awarded a fourth contract for 40 additional CRH1 high speed trains in China, for a value of $373 million.

Subsequent to quarter end, the group signed a contract to build 468 metro cars with Societe de transport de Montreal (STM), Canada, for a value of $715 million.

FINANCIAL HIGHLIGHTS

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

_________________________________________________________ Three-month

________________________________________________________ periods ended

________________________________________________________ October 31

__________________________________ 2010 _____________________ 2009

________________ BA _____ BT _____ Total _____ BA ______ BT _____ Total

Revenues ____ $ 1,843 __ $ 2,172 __ $ 4,015 __ $ 2,064 __ $ 2,533 __ $ 4,597

EBITDA ______ $ 160 ___ $ 172 ___ $ 332 ____ $ 197 _____ $ 191 ___ $ 388

Amortization ____ 73 ______ 31 ______ 104 ____ 94 ________ 32 ______ 126

EBIT __________ $ 87 ____ $ 141 ______ 228 ____ $ 103 ____ $ 159 ___ 262

Financing

income ____________________________ (18) ______________________ (29)

Financing expense ____________________ 64 ________________________ 70

EBT _______________________________ 182 ________________________ 221

Income taxes ________________________ 39 ________________________ 53

Net income _________________________ $ 143 _____________________ $ 168

Attributable to:

Shareholders

of Bombardier Inc. ___________________ $ 141 ______________________ $ 167

Non-controlling

Interests ___________________________ $ 2 _________________________ $ 1

EPS (in dollars)

Basic and diluted ____________________ $ 0.08 ______________________ $ 0.09

-

Segmented free

cash flow _______ $ (234) ____ $ 104 ___ $ (130) ____ $ 61 ___ $ 32 ____ $ 93

Income taxes and

net financing

expense _________________________ (2) ___________________________ (21)

Free cash flow __________________ $ (132) __________________________ $ 72

_

__________________________________________________ Nine-month

________________________________________________periods ended

__________________________________________________October 31

_____________________________ 2010 ___________________ 2009

______________ BA ____ BT ____ Total ____ BA ____ BT _____ Total

Revenues __ $ 5,740 __ $ 6,600 _ $ 12,340 __ $ 6,682 _ $ 7,332 _ $ 14,014

EBITDA _____ $ 485 __ $ 509 ____ $ 994 ___ $ 648 __ $ 531 __ $ 1,179

Amortization __ 218 _____ 93 ____ 311 _____ 281 ___ 88 ______ 369

EBIT _________$ 267 ___ $ 416 ___ 683 ___ $ 367 __ $ 443 _____ 810

Financing income _______________ (71) _____________________ (87)

Financing expense _______________ 189 ______________________ 210

EBT ___________________________ 565 ______________________ 687

Income taxes ____________________ 121 ______________________ 159

Net income ______________________ $ 444 ___________________ $ 528

Attributable to:

Shareholders

of Bombardier Inc. ________________ $ 437 ___________________ $ 521

Non-controlling

interests ________________________ $ 7 _______________________ $ 7

-

EPS (in dollars) ________________________________________________

Basic and diluted __________________ $ 0.24 __________________ $ 0.29

Segmented free

cash flow ______ $ (726) __ $ (55) __ $ (781) ___ $ (479) __ $ (79) __ $ (558)

Income taxes and

net financing

expense _______________________ (76) ______________________ (169)

Free cash flow __________________$ (857) ___________________ $ (727)

BA: Bombardier Aerospace; BT: Bombardier Transportation

FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2010

ANALYSIS OF RESULTS

Consolidated results

Consolidated revenues totalled $4 billion for the third quarter ended October 31, 2010 compared to $4.6 billion for the corresponding period last fiscal year. For the nine-month period ended October 31, 2010, consolidated revenues reached $12.3 billion, compared to $14 billion for the same period last year.

For the third quarter ended October 31, 2010, EBIT amounted to $228 million, or 5.7% of revenues, compared to $262 million, or 5.7%, for the same period the previous year. For the nine-month period ended October 31, 2010, EBIT amounted to $683 million, or 5.5% of revenues, compared to $810 million, or 5.8%, for the same period last fiscal year.

Net financing expense amounted to $46 million for the three-month period ended October 31, 2010, compared to $41 million for the corresponding period last year. For the nine-month period ended October 31, 2010, net financing expense totalled $118 million, compared to $123 million for the same period last year.

The effective income tax rate was 21.4% for the three- and nine-month periods ended October 31, 2010, compared to the statutory income tax rate of 30%. The lower effective tax rate is mainly due to the positive impact of the recognition of tax benefits related to operating losses and temporary differences, partially offset by permament differences.

As a result, net income amounted to $143 million, or $0.08 per share, for the third quarter of fiscal year 2011, compared to $168 million, or $0.09 per share, for the same period the previous year. For the nine-month period ended October 31, 2010, net income was $444 million, or $0.24 per share, compared to $528 million, or $0.29 per share, for the same period the previous year.

For the three-month period ended October 31, 2010, free cash flow usage totalled $132 million, compared to a free cash flow of $72 million for the corresponding period the previous year. For the nine-month period ended October 31, 2010, free cash flow usage totalled $857 million, compared to a usage of $727 million for the corresponding period the previous year.

As at October 31, 2010, Bombardier's order backlog stood at $48.9 billion, compared to $43.8 billion as at January 31, 2010.

Bombardier Aerospace

Revenues of $1.8 billion

- EBITDA of $160 million, or 8.7% of revenues

- EBIT of $87 million, or 4.7% of revenues

- Free cash flow usage of $234 million

- Net orders of 23 aircraft

- 53 aircraft deliveries

- Order backlog of $16.2 billion

- Launch of the Global 7000 and Global 8000 business jets

Bombardier Aerospace's revenues amounted to $1.8 billion for the three-month period ended October 31, 2010, compared to $2.1 billion for the same period the previous year. The decrease is mainly due to a decrease in manufacturing revenues reflecting lower deliveries partially offset by higher net selling prices in commercial aircraft.

For the third quarter ended October 31, 2010, EBIT totalled $87 million, or 4.7% of revenues, compared to $103 million, or 5%, for the same period the previous year. The 0.3 percentage-point decrease is mainly due to higher cost of sales per unit, mainly due to price escalation of materials, lower liquidated damages from customers as a result of fewer business aircraft order cancellations, a net negative variance on financial instruments carried at fair value, and lower absorption of research and development (R&D) expenses; partially offset by higher net selling prices for large business aircraft and for commercial aircraft, lower amortization expense mainly due to the program tooling on some aircraft models being fully amortized, lower write-downs of pre-owned business aircraft inventories and the mix between business and commercial aircraft deliveries.

Free cash flow usage amounted to $234 million for the third quarter ended October 31, 2010, compared to a free cash flow of $61 million for the same period last fiscal year. The decrease in free cash flow is mainly due to a negative period-over-period variation in net change in non-cash balances related to operations, higher net additions to property, plant and equipment (PP&E) and intangible assets, and lower earnings before financing income, financing expense, income taxes and depreciation and amortization (EBITDA).

For the quarter ended October 31, 2010, Bombardier Aerospace delivered 53 aircraft, compared to 61 for the same period the previous year. The 53 deliveries consisted of 33 business, 19 commercial, and one amphibious aircraft (33 business, 27 commercial and one amphibious aircraft for the corresponding period last fiscal year).

Bombardier Aerospace's order backlog stood at $16.2 billion as at October 31, 2010, compared to $16.7 billion as at January 31, 2010. The decrease is due to a lower order backlog in business aircraft, turboprops and regional jets, partially offset by an order received for the CSeries family of aircraft.

Bombardier Transportation

- Revenues of $2.2 billion

- EBITDA of $172 million, or 7.9% of revenues

- EBIT of $141 million, or 6.5% of revenues

- Free cash flow of $104 million

- New order intake totalling $3.7 billion (book-to-bill ratio of 1.7)

- Record order backlog of $32.7 billion

Bombardier Transportation's revenues totalled $2.2 billion for the three-month period ended October 31, 2010, compared to $2.5 billion for the same period last year. The decrease is mainly due to lower activities in rolling stock in the commuter and regional trains, light rail vehicles and metro cars in Western Europe due to the phasing out of major projects in several countries ahead of the ramping-up of production of new contracts, in intercity, high speed and very high speed trains, mainly in Asia due to timing of new orders, and to a negative currency impact. This was partially offset by higher activities in commuter and regional trains, light rail vehicles and metro cars in Asia; in propulsion and controls in China; and in locomotives in North America.

For the third quarter ended October 31, 2010, EBIT totalled $141 million, or 6.5% of revenues, compared to $159 million, or 6.3%, for the same quarter the previous year. The 0.2 percentage-point increase is mainly due to better overall contract execution, partially offset by a net loss related to foreign exchange fluctuations and certain financial instruments carried at fair value compared to a net gain for the same period last fiscal year, higher R&D expenses, and lower absorption of amortization expenses and selling, general and administrative (SG&A). The EBIT margin was also impacted by a loss of $20 million in connection with the flooding of our site in Bautzen, Germany.

Free cash flow was $104 million for the quarter ended October 31, 2010, compared to $32 million for the same period last fiscal year. The $72-million improvement is mainly due to a positive period-over-period variation in net change in non-cash balances related to operations and lower net additions to PP&E and intangible assets; partially offset by lower EBITDA.

The order intake for the third quarter ended October 31, 2010 reached $3.7 billion, and a book-to-bill ratio of 1.7, compared to $3.6 billion and a book-to-bill ratio of 1.4 for the same period last fiscal year. The increase is mainly due to higher order intake in system and signalling mainly due to an order received in Brazil and higher order intake in rolling stock in Europe; partially offset by lower order intake in rolling stock in Asia, where last year was exceptionally high due to a landmark order for very high speed trains in China.

Bombardier Transportation's backlog reached a record $32.7 billion as at October 31, 2010, compared to $27.1 billion as at January 31, 2010. The 21% increase is due to order intake being significantly higher than revenues recorded and the strengthening of most foreign currencies versus the U.S. dollar as at October 31, 2010 compared to January 31, 2010.

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 January 31, 2011 to the shareholders of record at the close of business on January 14, 2011.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on January 14, 2011 also have a right to a priority quarterly dividend of $0.000390625 Cdn per share.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares

A monthly dividend of $0.05729 Cdn per share on Series 2 Preferred Shares has been paid on September 15, of $0.06125 Cdn per share on October 15, and of $0.0625 Cdn per share on November 15, 2010.

Series 3 Preferred Shares

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

Series 4 Preferred Shares

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

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended January 31, 2010, were $19.4 billion, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at http://www.bombardier.com.

CRJ, CRJ1000, CSeries, Global, Global 7000, Global 8000, INNOVIA, Learjet, Learjet 85, NextGen and ZEFIRO are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the Consolidated financial statements are available at http://www.bombardier.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the "Corporation") to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation's actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on current information available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the respective Forward-looking statements sections in BA and BT in the Management's Discussion and Analysis ("MD&A") of the Corporation's annual report for fiscal year 2010.

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 the Corporation's business environment (such as the financial condition of the airline industry), operational risks (such as risks involved in developing new products and services, risks in doing business with partners, risks relating to product performance warranty, casualty claim losses, risks from regulatory and legal proceedings, environmental risks, risks relating to the Corporation's dependence on certain customers and suppliers, human resource risks and risks resulting from fixed-term commitments), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants) and market risks (including foreign currency fluctuations, changing interest rates and commodity pricing risk). For more details, see the Risks and Uncertainties section of the MD&A of the Corporation's annual report for fiscal year 2010. 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 the Corporation'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.

CAUTION REGARDING NON-GAAP EARNINGS MEASURES

This press release is based on reported earnings in accordance with Canadian 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 GAAP; 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.

CONTACTS:

Bombardier Inc.

Isabelle Rondeau

Director, Communications

tel. 514-861-9481

http://www.bombardier.com

-

Shirley Chenier

Senior Director, Investor Relations

tel. 514-861-9481

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