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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things

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To: James Flynn who wrote (628)	8/24/1999 11:05:00 PM
From: csm	Read Replies (1) of 1177

I can still hear the call at ir-live.com A few comments... We've seen the numbers, they're very impressive. Rec'l products still low but profitable. Backlog $26B vs $18.8B last year Trans $8.4B vs $6.8B Aero $17.6B vs $11.8B They said a lot of the increase in backlog is due to currency fluctuation. Increasing production of CRJ from 7.5/mo to 9.5/mo to bring fy2000 plan to 100 and fy2001 to 112 aircraft. Lower unit deliveries on rec'l vehicles, but still profitable. Market down about 25%. Market share for BBD > 40%. New ATV model for fall targeted at sports users. 16-22' sport boats joint venture with Mercury Marine. $17.6M net income (EBITDA i think) for a 10% operating margin vs 8% in first quarter. Target is 30%+ growth in EPS for the year! They feel they are on track. Q&A Company feels that the production increase is prudent and will pay off by making it possible to "open slots" to handle additional orders. Cautiously optimistic that margins will improve. BBD reluctant to compete in 30 seat market because they don't think it is a profitable niche. They'll leave it to Dornier and Embraer to "scrap it out." Business jet market has not peaked yet. Flex-jet is increasing. Sounded like something is cooking on the European transportation front but nothing was revealed in the call. Cash flows likely to increase as a number of products reach maturity and production capacity increases are completed. Cash at end of Q ~ $677M. Working very hard to reduce expenses on Dash8-400 while others have left the turboprop niche. BBD feels that the value of the Dash8 will be realized before long and they will be the only ones in the market. Cheers! Stuart.

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