Published on : Friday, August 1, 2014
Revenues totalled $4.9 billion for the quarter, compared to $4.4 billion for the same period last fiscal year, which represents an increase of 8.9%, excluding currency impacts.
For the second quarter ended June 30, 2014, earnings before financing expense, financing income and income taxes (EBIT) totalled $257 million, or 5.3% of revenues, compared to EBIT before special items of $257 million, or 5.8%, and EBIT of $288 million, or 6.5%, for the same period last fiscal year.
On an adjusted basis, net income amounted to $192 million, or earnings per share (EPS) of $0.10, for the second quarter ended June 30, 2014, compared to $158 million, or $0.09, for the same period the previous year.
Net income totalled $155 million, or EPS of $0.08, compared to $180 million or $0.10 for the same period the previous year.
For the three-month period ended June 30, 2014, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) amounted to $424 million, compared to a usage of $566 million for the same period last year.
As at June 30, 2014, available short-term capital resources of $3.9 billion included cash and cash equivalents of $2.5 billion, compared to $4.8 billion and $3.4 billion, respectively as at December 31 2013.
The overall backlog reached $75.7 billion as at June 30, 2014, compared to $69.7 billion as at December 31, 2013.
On July 23, 2014, Bombardier announced a new organizational structure comprised of four business segments: Bombardier Transportation, Bombardier Business Aircraft, Bombardier Commercial Aircraft and Bombardier Aerostructures and Engineering Services, the heads of which will report directly to Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
The creation of the Aerostructures and Engineering Services business segment aims at further marketing the company’s expertise in this field to the aerospace industry, thus generating new revenues.
A detailed implementation plan will be developed within the next few months, and the new structure will be in place January 1, 2015.
The restructuring will result in a reduction of approximately 1,800 indirect positions in Aerospace.
“Overall results for the second quarter were in line with our expectations. Both groups saw an increase in their revenues and a high level of activity for their products,” said Pierre Beaudoin.
“Bombardier Transportation continued to win a good level of new orders, bringing its total amount to $9.7 billion for the first six months of the year.
And further cost reduction measures are being implemented as part of its reorganization initiative to increase profitability over time.”
“In Aerospace, the new organizational structure recently announced will make us more agile and flexible in addressing customer needs, while reducing costs and increasing our ability to focus on growth areas.
Our strong backlog, combined with this new lighter structure, will allow us to realize the full potential of our investments in new products,” concluded Mr. Beaudoin.
Bombardier Aerospace’s revenues amounted to $2.5 billion for the three-month period ended June 30, 2014, compared to $2.3 billion for the same period last fiscal year.
EBIT totalled $141 million, or 5.6% of revenues, for the second quarter ended June 30, 2014, compared to EBIT before special items of $107 million, or 4.7%, and EBIT of $138 million, or 6.1%, for the same period last fiscal year.
Free cash flow usage amounted to $363 million (including net additions to PP&E and intangible assets of $509 million) for the second quarter ended June 30, 2014, compared to a usage of $459 million (including net additions to PP&E and intangible assets of $534 million) for the same period last fiscal year.
Bombardier Aerospace delivered a total of 62 aircraft during the second quarter ended June 30, 2014, compared to 57 for the same period last fiscal year, and received 48 net orders, compared to 82 for the same period last fiscal year.
On May 29, 2014, an engine-related incident occurred on the first CS100 Flight Test Vehicle (FTV1) during stationary ground maintenance testing.
Bombardier and Pratt & Whitney have worked on a solution and flight tests are expected to resume in the coming weeks.
The targeted entry-into-service dates of the CS100 and CS300 aircraft programs remain unchanged.
In June, Bombardier Commercial Aircraft signed a firm order with an undisclosed customer for 16 CRJ900 NextGen aircraft, valued at $727 million based on list price, with options for an additional eight.
Subsequent to quarter-end, at the Farnborough Airshow, Bombardier Aerospace concluded firm orders, conditional purchase agreements and letters of intent for a total of 74 aircraft, valued at more than $4.25 billion.
This includes letters of intent and a conditional purchase agreement for a total of 66 CSeries aircraft with five customers, bringing the total CSeries firm orders and other agreements to 513, with 20 customers in 17 countries, including 203 firm orders.
In April, the maiden flight of the first Learjet 85 Flight Test Vehicle was successfully completed. Additional flights have since occurred.
The flights are proceeding as expected.Bombardier Aerospace’s backlog reached a level of $38.1 billion as at June 30, 2014, compared to $37.3 billion, as at December 31, 2013.