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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things -- Ignore unavailable to you. Want to Upgrade?

To: James Flynn who wrote (628)	8/24/1999 11:01:00 PM
From: Hassan Lakhani	Read Replies (1) \| Respond to of 1177

Here is the detailed breakdown: MONTREAL, QUEBEC--The consolidated revenues of Bombardier Inc. for the quarter ended July 31, 1999 reached $3.2 billion compared with $2.5 billion for the same period last year. Net income for the quarter was $169.1 million, or $0.24 per share, as against a net income of $122.7 million, or $0.17 per share, for the quarter ended July 31, 1998. For the six months ended July 31, 1999, consolidated revenues amounted to $6.0 billion compared with $4.8 billion for the same period last year. Net income reached $313.6 million, or $0.44 per share, as against $234.8 million, or $0.33 per share, for the same period last year. /T/ The highlights are as follows: (millions of Canadian dollars, except per share amounts) Three months Six months ended July 31 ended July 31 1999 1998 1999 1998 ------------------------------------------------------------- Revenues Aerospace $1,846.7 $1,378.8 $3,417.7 $2,632.9 Recreational Products 239.3 291.5 555.3 694.0 Transportation 959.2 711.1 1,800.6 1,314.5 Bombardier Capital 173.9 136.6 329.7 254.6 Intersegment eliminations (38.3) (29.7) (71.9) (60.1) ------------------------------------------------------------- External revenues $3,180.8 $2,488.3 $6,031.4 $4,835.9 ------------------------------------------------------------- Income before income taxes Aerospace $194.8 $128.0 $361.3 $239.5 Recreational Products 1.1 7.9 1.1 23.5 Transportation 50.4 33.3 94.2 60.5 Bombardier Capital 6.1 19.6 11.5 37.7 ------------------------------------------------------------- 252.4 188.8 468.1 361.2 ------------------------------------------------------------- Income taxes 83.3 66.1 154.5 126.4 ------------------------------------------------------------- Net income $169.1 $122.7 $313.6 $234.8 ------------------------------------------------------------- Earnings per share: Basic $0.24 $0.17 $0.44 $0.33 Fully diluted $0.23 $0.16 $0.43 $0.32 Average number of common shares outstanding during the period 683.6 679.6 (millions) /T/ Bombardier's order backlog at July 31, 1999 reached $26.0 billion, a 40 percent increase over the $18.6 billion backlog at the end of the second quarter last year. In aerospace, the backlog increased from $11.8 billion last year to $17.6 billion at July 31, 1999 and in transportation, it went from $6.8 billion to $8.4 billion. Commenting on these results, President and Chief Executive Officer Robert E. Brown noted that "second quarter revenues increased by 28 percent while net income rose by 38 percent over the same period last year. Higher revenues and net income are attributable to a good performance in the aerospace and transportation sectors. Aircraft deliveries increased in the aerospace sector while Bombardier Transportation benefited from an increase in activities in North America and Europe". Mr. Brown added that the income before income taxes of Bombardier Recreational Products became slightly positive although the revenues decreased by 18 percent. He also mentioned that production of the new ATV Traxter(i) has started during the quarter and that the production rate will increase during the next quarters. Bombardier Capital has continued to experience a strong growth in revenues and in assets under management. Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia, and more than 90 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999 totalled $11.5 billion. (i) Trademark of Bombardier Inc. or its subsidiaries -30- FOR FURTHER INFORMATION PLEASE CONTACT: Bombardier Inc. Michel Lord Vice President, Communications and Public Relations (514) 861-9481 bombardier.com

To: James Flynn who wrote (628)	8/24/1999 11:05:00 PM
From: csm	Read Replies (1) \| Respond to 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.