Bombardier Revises Quarterly Financial Statements for
Fiscal Year 2002-03 With no Effect on the Full Year's
Results of Operations
MONTREAL, QUEBEC--NOVEMBER 26, 2003 - 08:23 ET
In connection with the agreement in principle
to sell its recreational products business, Bombardier Inc.
prepared separate combined financial statements for Bombardier
Recreational Products. During the course of the preparation of
these separate combined financial statements, Bombardier
performed a comprehensive review of Bombardier Recreational
Products' accounting records, including the application of its
accounting policies to interim consolidated financial statements.
As a result of this process, the Corporation became aware that an
accounting policy specific to Bombardier Recreational Products
was incorrectly applied during the preparation of the interim
consolidated financial statements for each of the quarters in the
fiscal year ended Jan. 31, 2003.
The incorrect application of Bombardier Recreational Products'
accounting policy had no effect on the consolidated results of
operations of Bombardier Inc. for the year ended Jan. 31, 2003,
or for any other fiscal year. Also, it had no material effect on
the interim consolidated financial statements for each of the
first two quarters of the current fiscal year.
The incorrect application of this accounting policy resulted in
the deferral of certain production and marketing costs incurred
during the first two quarters of fiscal year 2002-03 to the last
two quarters of that fiscal year. Under Canadian GAAP applicable
to interim financial statements, only certain costs incurred in a
particular quarter can be deferred and recognized as an expense
during a subsequent quarter of the same year.
This incorrect application has no impact on the sale of
Bombardier Recreational Products currently being negotiated.
Since the announcement of Bombardier's decision to dispose of its
recreational products business in April 2003, Bombardier
Recreational Products has been accounted for as discontinued
operations. The effect of these non-cash adjustments on
Bombardier Inc.'s consolidated statements of income for each of
the quarters of fiscal year 2002-03 is as follows:
/T/
(in millions of Canadian dollars, except per share amounts)
As previously reported 2002-03
Fiscal
Q1 Q2 Q3 Q4 year
---------------------------------------------------------------------
Income from discontinued
operations - net of tax 17.9 24.7 38.7 12.4 93.7
Basic and diluted
earnings per share from
discontinued operations 0.01 0.02 0.03 0.01 0.07
Basic and diluted
earnings (loss) per share 0.14 0.04 0.12 (0.77) (0.47)
Restated 2002-03
Fiscal
Q1 Q2 Q3 Q4 year
---------------------------------------------------------------------
Income (loss) from
discontinued operations -
net of tax (7.8) 12.1 51.5 37.9 93.7
Basic and diluted earnings
(loss) per share from
discontinued operations (0.01) 0.01 0.04 0.03 0.07
Basic and diluted
earnings (loss) per share 0.12 0.03 0.13 (0.75) (0.47)
/T/
Bombardier is currently assessing the effect of the incorrect
application of Bombardier Recreational Products' accounting
policy for each of the quarters of fiscal year 2001-02. As soon
as the restated information is available, Bombardier Inc. will
file with the securities regulators, and post on its website,
restated quarterly consolidated financial statements for each of
the quarters of fiscal year 2002-03 and, if necessary, each of
the quarters of fiscal year 2001-02.
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 and manufacturing facilities in
25 countries throughout the Americas, Europe and Asia-Pacific.
Its revenues for the fiscal year ended Jan. 31, 2003 stood at
$23.7 billion Cdn. Bombardier shares are traded on the Toronto,
Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
/T/
---------------------------------------------------------------------
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 for
the year ended Jan. 31, 2003 under the heading Risks and
Uncertainties in the Management's Discussion and Analysis on the
Corporation's Web site.
---------------------------------------------------------------------
---------------------------------------------------------------------
CAUTION REGARDING NON-GAAP EARNINGS MEASURES
This release contains analyses based on the reported earnings in
accordance with Canadian generally accepted accounting principles
(GAAP) and analyses based on earnings measures, such as EBT and EBIT,
that do not have a standardized meaning prescribed by GAAP and are
therefore not readily comparable to similar measures presented by
other corporations.
---------------------------------------------------------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Bombardier Inc.
Dominique Dionne
Vice President, Public Relations and Communication
(514) 861-9481
www.bombardier.com |
