Bombardier FY2010 profit drops but stays well in the black

Bombardier has announced its financial results for its fiscal year 2010 which ended on 31 January 2010.

Highlights of FY2010 included consolidated revenues of $19.4 billion, compared to $19.7 billion last fiscal year; EBITDA of $1.6 billion, compared to $2 billion last fiscal year; and net income of $707 million compared with $1 billion in the previous fiscal year. The company also reported a strong cash position of $3.4 billion and a backlog of $43.8 billion.

"Against a challenging economic backdrop, we delivered good financial results. We took the downturn as an opportunity to fine-tune the way we operate in order to execute better and cut costs intelligently,” observed Pierre Beaudoin, president and chief executive officer, Bombardier Inc.

"In aerospace, we took the necessary steps to adapt to the economic reality by carefully monitoring capital expenditures and reducing our production rates for both business and regional jets. We met our target deliveries and increased our market share in both segments. Keeping our sight on the long term, we continued to invest in the development of our new flagship products, the Learjet 85 business jet and the CSeries commercial aircraft for which we have now received 90 orders." Beaudoin also noted that the rail market remained resilient for the company.

At Bombardier Aerospace, revenues totalled $9.4 billion compared to $10 billion last fiscal year, while EBIT reached $473 million, or 5.1% of revenues, compared to $896 million, or 9%, for the same period last year. Bombardier Aerospace’s backlog reached $16.7 billion at 31 January 2010, compared to $23.5 billion at the same date last year.

The group recorded 11 net orders (213 gross orders and 202 cancellations) in fiscal year 2010, compared to 367 net orders (423 gross orders and 56 cancellations) last fiscal year. Deliveries totalled 302 aircraft, versus 349 last fiscal year.

Commercial Aircraft delivered 121 units in FY2010, compared to 110 aircraft in the previous year. Bombardier Aerospace expects to deliver approximately 15% fewer business aircraft and 20% fewer commercial aircraft in fiscal year 2011, compared to the previous fiscal year.

The development of new aircraft programmes continues with flight testing on the CRJ1000 NextGen aircraft resuming in February 2010 and its entry into service is scheduled for the second half of calendar year 2010. The construction of a new manufacturing facility for key components of the Learjet 85 aircraft has begun in Queretaro, Mexico. The CSeries’ Complete Integrated Aircraft Test Area (CIASTA) systems testing facility in Mirabel, Canada and the wing-manufacturing facility in Belfast, UK, are also under construction.

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