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Financial Results of Bombardier Inc. for the Three Months Ended April 30, 2000
MONTREAL, QUEBEC--The consolidated revenues of Bombardier Inc. for
the quarter ended Apr. 30, 2000 reached $3.3 billion, a 15 %
increase over revenues of $2.9 billion for the same period the
previous year. Net income for the quarter, before a special
charge, reached $195.1 million, an increase of 35 % over $144.5
million for the quarter ended Apr. 30, 1999. Earnings per share,
before a special charge, rose to $0.28 from $0.20 the previous
year, an increase of 40 % over the same period in 1999. After a
special charge of $79.5 million ($47.7 million after tax), net
income for the quarter amounted to $147.4 million, or $0.21 per
share.
The special charge results from additional provision for bad debt
related to the smaller item portfolio of Bombardier Capital, a
portfolio which is being wound down. On May 12, 2000, involuntary
bankruptcy proceedings were filed under Chapter 7 of the US
Bankruptcy Code against the principal recourse lessor providing
credit support for a significant portion of this portfolio. As a
result of this development as well as defaults from other recourse
lessors and the deterioration of the credit quality of this
portfolio, a special charge of $79.5 million ($47.7 million after
tax) has been provided for in the quarter.
Bombardier's order backlog at Apr. 30, 2000 reached $28.3 billion,
an 11 % increase over the $25.5 billion backlog at the end of the
first quarter last year. In aerospace, the backlog increased to
$20.0 billion at Apr. 30, 2000 from $17.6 billion at the end of
the same quarter the previous year and in transportation, it
totalled $8.3 billion compared to $7.9 billion at Apr. 30, 1999.
/T/
The highlights are as follows:
(millions of Canadian dollars, except per share amounts)
Three months ended April 30
2000 1999
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Revenues
Aerospace $2,011.0 $1,571.0
Recreational Products 315.4 316.0
Transportation 763.1 841.4
BC 222.0 155.8
Intersegment eliminations (44.8) (33.6)
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External revenues $3,266.7 $2,850.6
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Income before special charge and
income taxes
Aerospace $234.0 $166.5
Recreational Products 9.1 -
Transportation 39.1 43.8
BC 10.0 5.4
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292.2 215.7
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Special charge - BC 79.5 -
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Income before income taxes 212.7 215.7
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Income taxes 65.3 71.2
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Net income $147.4 $144.5
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Earnings per share:
Basic $0.21 $0.20
Fully diluted $0.21 $0.20
Average number of common shares
outstanding during the period (millions) 687.7 683.4
/T/
Commenting on these results, President and Chief Executive Officer
Robert E. Brown noted that "the Corporation registered a
substantial increase in consolidated revenues during the quarter
and net income, before a special charge, also increased strongly
to $195.1 million. Improved revenues are mainly attributable to
increased aircraft deliveries while improved net income before the
special charge is due to the excellent performance of the
aerospace segment and to the return to profitability of the
recreational products segment. The decrease in revenues in the
transportation segment was mainly due to the variation in the
exchange rate of the euro against the Canadian dollar." Mr. Brown
added that, "we are confident of achieving the earnings per share
(EPS) target growth of 30 % to 40 % we have set for the current
fiscal year, in spite of the special charge related to Bombardier
Capital." |
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