Bombardier Statement on Share Price
18:02 EST Wednesday, October 31, 2001
MONTREAL, QUEBEC--Following the recent decrease in Bombardier's stock price and in response to comments and queries from the media, Bombardier issues the following statement:
Bombardier is not aware of any factors either internal or external that could explain the recent and unusually sharp drop in its share price. Bombardier reiterates that it will be posting positive operating results for this fiscal year and reaffirms its targeted earnings per share growth of approximately 15%, before special items.
Bombardier Transportation
To address queries regarding the growth of accounts receivable in comparison to the growth of sales, Bombardier states that the high level of receivables is directly due to the addition of Adtranz's accounts receivable at the end of Bombardier's second quarter. Bombardier Transportation receivables are made up of accounts with solid and reliable customers largely comprised of governments and public transit authorities. Moreover, the order backlog for the transportation sector, from May to August 2001, has increased by 30% compared to the combined backlog of Adtranz and Bombardier Transportation for the same period last year. These new orders are generally associated with large cash advances from customers. Bombardier expects continued growth in this sector.
Bombardier Aerospace
As for Bombardier Aerospace, since September 11, it has not changed its on-going aircraft financing programs and has continued to apply its standard practices in the normal course of business, so that Bombardier Aerospace and Bombardier Capital are not exposed to any additional significant risk. Bombardier prides itself in the rate of aircraft deliveries it has been able to achieve since September 11, and reaffirms its delivery target of approximately 370 business and regional aircraft for this year- the same number of aircraft as last year.
Bombardier Recreational Products
Bombardier continues to expect growth for its recreational products group. Its product offering has been considerably expanded, which makes it less dependent on seasonal products.
Bombardier Capital
As for Bombardier Capital, since exiting the consumer retail financing market, it is expected to return to profitability, as it intensifies its focus on core business operations.
Bombardier: strong order book and sound financial position Bombardier has a strong order book valued at some $46 billion at the end of the last quarter. Its sources of revenues are well-balanced between its transportation and aerospace groups and between Europe and North America. Bombardier's financial position is sound and the Corporation is well-positioned to weather the current economic situation and to meet its financial targets.
Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It is also a provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe and Asia-Pacific and its revenues for the fiscal year ended Jan. 31, 2001 totalled $16.1 billion Cdn.
FOR FURTHER INFORMATION PLEASE CONTACT: Bombardier Inc., Dominique Dionne, Director, Public Relations and Communications, (514) 861-9481, www.bombardier.com
© 2001 Canadian Corporate News Inc. |
