MONTREAL, QUEBEC--(Marketwire - November 28, 2007) - Bombardier Inc. (TSX: BBD.A)(TSX: BBD.B)
(All amounts in this press release are in U.S. dollars unless otherwise indicated.)
- Consolidated revenues of $4.2 billion, compared to $3.4 billion last fiscal year
- EBITDA from continuing operations of $326 million, compared to $234 million last fiscal year
- EBIT from continuing operations of $201 million, compared to $105 million last fiscal year
- Income from continuing operations of $91 million ($0.05 per share), compared to $53 million ($0.03 per share) last fiscal year
- Free cash flow of $560 million, an improvement of $677 million over the same period last fiscal year
- Cash position of $3.6 billion, allowing for the intended repurchase of long-term debt totalling $1.1 billion
- Record backlog of $51.6 billion

Bombardier today released strong financial results for the third quarter of fiscal year 2008. Earnings before financing income, financing expense and income taxes, from continuing operations (EBIT), reached $201 million, compared to $105 million for the same period last year. This brings the EBIT margin to 4.8%, which compares favourably to last year's 3.1% for the same quarter. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment) also surged by $677 million to reach $560 million. As for the Corporation's overall backlog, it climbed to a historic high of $51.6 billion as at October 31, 2007.

Cash and cash equivalents increased by $1 billion compared to January 31, 2007, totalling $3.6 billion at the end of the third quarter of fiscal 2008. Due to this strong cash position, the Corporation intends to repurchase, prior to the end of the current fiscal year, the following three long-term debts: 282-million euros ($408-million) notes, bearing interest at 5.75%, due in February 2008; 300-million pound sterling ($623-million) of Bombardier Capital's notes, bearing interest at 6.75%, due in May 2009; and another long-term debt of $26 million.

"Both business groups produced substantial increases in revenues and made steady improvement in profitability," commented Laurent Beaudoin, Chairman of the Board and Chief Executive Officer, Bombardier Inc. "They also generated high levels of free cash flow for the quarter. At Aerospace, orders for business aircraft remained solid, and deliveries of both business and regional aircraft continued to climb. At Transportation, order levels were similarly robust, bringing our book-to-bill ratio to a healthy 1.7 for the quarter," added Mr. Beaudoin. "Indeed, the Corporation's solid backlog, which now tops more than $50 billion, testifies to the enduring demand for our fully diversified product offering. I am confident that Bombardier will continue to build from this solid foundation to execute its market leadership strategy."

Bombardier Aerospace

EBIT at Bombardier Aerospace rose to $122 million, compared to $43 million for the same period last year. This represents an EBIT margin of 5.2%, versus last year's 2.3% for the same quarter. Free cash flow of $579 million, compared to last year's $18 million, represents a $561 million improvement.

Bombardier Aerospace's backlog soared to a new record level of $19.6 billion, an increase of $6.4 billion compared to the backlog as at January 31, 2007. Firm orders totalled 124 business and regional aircraft, compared to 95 aircraft for the same period last fiscal year. Deliveries also climbed to 90 aircraft, versus 73 for the corresponding period last year.

With 112 net orders for business aircraft in the third quarter, compared to 57 for the same period last fiscal year, Bombardier Aerospace reaffirmed its market leadership. Indeed, the group received its largest single order for Challenger 300 aircraft, as U.S.-based XOJET placed a firm order for 20 of such jets, with options for an additional 60 jets.

Building on the Learjet aircraft family's celebrated heritage for innovation and performance, Bombardier Aerospace launched an all-new Learjet aircraft, provisionally named Learjet NXT. To date, the group has received more than 85 letters-of-intent for the Learjet NXT.

Based on the growing number of firm orders on a year-to-date basis, in addition to the production rate increase for the CRJ700 and CRJ900 aircraft announced last August, Bombardier Aerospace elected to further step up its production rate to one aircraft every three days. Bombardier Aerospace therefore expects to produce approximately 50 CRJ700 and CRJ900 aircraft during this fiscal year and approximately 64 regional jets during fiscal year 2009.
Bombardier Aerospace's Q-Series continues to attract high demand from regional airlines. In addition to the 10 Q400 aircraft orders received during the quarter from a European customer, subsequent to October 31, 2007, Bombardier Aerospace received an order for 12 Q400 turboprops from Qantas Airways of Australia, with options and purchase rights for 24 additional Q400 aircraft, showing the continued confidence airline customers have in this product.

Bombardier Transportation

Bombardier Transportation's EBIT reached $79 million, compared to $62 million for the same quarter last fiscal year. This represents an EBIT margin of 4.2%, versus 4% for the same quarter last fiscal year. Meanwhile, free cash flow totalled $35 million, an improvement of $177 million over the same quarter last fiscal year.
New order intake reached $3.1 billion, leading to a book-to-bill ratio of 1.7 for the third quarter, bringing the order backlog to $32 billion as of October 31, 2007.

In China, Bombardier Transportation was awarded a breakthrough signalling contract for its INTERFLO 450 European Rail Traffic Management System (ERTMS) Level 2 system. Subsequent to the quarter, Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP) received from the Chinese Ministry of Railways an order for 40 high-speed trainsets featuring ZEFIRO technology. This is the largest single order for rail passenger cars placed at one time in Chinese rail history.

In connection with the framework agreement signed in February 2007 between Bombardier Transportation and Germany's Deutsche Bahn (DB) for the supply of 321 new TALENT 2 trains, a first order of 42 trains, representing 168 cars, was received during the third quarter of fiscal 2008.

In October, with the inauguration in France of the world's first dual-mode and dual-voltage AGC (Autorail Grande Capacite), Bombardier Transportation reaffirmed its reputation for ingenuity and innovation. This groundbreaking hybrid AGC combines a specific set of operating features for the first time ever in a train.

In November, Bombardier purchased all the shares held by Power Pacific Corporation Limited in the capital stock of the holding of Bombardier Transportation's joint ventures in China, for a total consideration of $39 million. This transaction brings the group's participation in its various joint ventures in this country to 50%.

meer info bij
Bombardier Inc.
Shirley Chenier
Senior Director, Investor Relations
514-861-9481
www.bombardier.com