Bombardier Announces it Will Not Meet Previously
Announced Financial Targets
MONTREAL, QUEBEC--MARCH 4, 2003 - 08:32 EST
Bombardier Inc. announced today that on the
basis of preliminary results compiled by the Corporation for the
fiscal year ended Jan. 31, 2003, financial targets previously
provided by the Corporation will not be achieved. Previous
guidance for earnings was $0.81 per share, before special items
($0.70 after special items) and free cash flow of $1.3 billion.
Based on these preliminary results, earnings per share before
special items will be in the range of $0.40 to $0.45 and free
cash flow for the fiscal year will be just over $800 million.
Earnings per share after special items cannot be provided at this
time as the Corporation is currently finalizing its consolidated
financial statements.
As a result of changes in the aerospace market, the Corporation
is also contemplating a change in accounting policy for its
aerospace programs, which could entail significant non-cash
write-offs. If the accounting policy change is adopted, the
audited financial statements for the year ended Jan. 31, 2003,
which are scheduled to be published April 3, 2003, would be
presented under the new accounting policy and the result in EPS
after special items is expected to be materially lower than the
stated range. Free cash flow will not be affected by the
accounting change.
"The current information we now have on hand warrants the
immediate publication of this notice," said Paul M. Tellier,
President and CEO of Bombardier. "We are already working on
specific initiatives and will be providing a broader perspective
on our plans when we release our year-end results."
Bombardier Inc., a diversified manufacturing and services
company, is a world-leading manufacturer of business jets,
regional aircraft, rail transportation equipment and motorized
recreational products. It also provides financial services and
asset management in business areas aligned with its core
expertise. Headquartered in Montreal, Canada, the Corporation has
a workforce of some 75,000 people in 24 countries throughout the
Americas, Europe and Asia-Pacific. Its revenues for the fiscal
year ended Jan. 31, 2002 stood at $21,6 billion. Bombardier
trades on the Toronto, Brussels and Frankfurt stock exchanges
(BBD, BOM and BBDd.F).
FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" that are
subject to risks and uncertainties. For information identifying
legislative or regulatory, economic, climatic, currency,
technological, competitive and other important factors that could
cause actual results to differ materially from those anticipated
in the forward-looking statements, see Bombardier's Annual Report
under the heading Risks and Uncertainties in the Management's
Discussion and Analysis section. |
