Bombardier Announces its Unaudited Financial Results for
the Year Ended January 31, 2000
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MARCH 23, 2000
MONTREAL, QUEBEC--For the year ended Jan. 31, 2000, the
consolidated revenues of Bombardier Inc. totalled $13.6 billion,
an 18 % increase over revenues of $11.5 billion the previous year.
Net income for the year, before net unusual items, reached $752.4
million, an increase of 36 % over $554.0 million for the preceding
year. Earnings per share, before net unusual items, rose to $1.06
from $0.77 the previous year. Net income, after net unusual items
of $51.1 million ($33.6 million after tax), reached $718.8 million
or $1.02 per share, an increase of 30 % over last year.
Consolidated revenues for the fourth quarter of 1999-2000 totalled
$4.4 billion, compared with $4.0 billion for the quarter ended
Jan. 31, 1999. Net income for the quarter, before net unusual
items, rose to $271.4 million, or $0.38 per share, as against a
net income of $193.7 million, or $0.27 per share, for the same
period last year. After net unusual items of $17.4 million ($17.3
million after tax), net income for the quarter amounted to $254.1
million or $0.37 per share.
The unusual items for the quarter result from restructuring
charges of $84.0 million related to Bombardier Transportation's
European operations and of $44.5 million related to Bombardier
Aerospace's Commercial Aviation Services. These restructuring
charges totalling $128.5 million were partially offset by a net
gain of $111.1 million on the divestiture of the Corporation's 50
% interest in Shorts Missile Systems Limited and of its 100 %
interest in Specialist Aviation Services Limited.
Bombardier's order backlog at Jan. 31, 2000 reached $27.2 billion,
a 7 % increase over the $25.5 billion backlog at Jan. 31, 1999.
In aerospace, the backlog increased to $18.9 billion at Jan. 31,
2000, from $16.2 billion at the end of the previous fiscal year
and in transportation, it totalled $8.3 billion at the end of the
fiscal year compared to $9.3 billion at Jan. 31, 1999.
/T/
The highlights are as follows:
(Unaudited)
(millions of Canadian dollars, except per share amounts)
Three months Years ended
ended January 31 January 31
2000 1999 2000 1999
Revenues
Aerospace $2,829.1 $2,448.9 $8,126.2 $6,444.1
Recreational
Products 511.5 572.9 1,473.0 1,628.1
Transportation 857.0 873.3 3,446.1 2,966.3
BC 232.0 164.8 738.5 570.6
Intersegment
eliminations (25.7) (15.7) (165.3) (109.0)
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External revenues $4,403.9 $4,044.2 $13,618.5 $11,500.1
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Income (loss)
before unusual
items and income taxes
Aerospace $341.4 $291.1 $903.9 $681.9
Recreational
Products 11.9 (69.0) 17.7 (45.5)
Transportation 40.6 55.8 174.4 147.9
BC 2.8 (5.3) 28.0 42.6
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396.7 272.6 1,124.0 826.9
Unusual items, net (17.4) - (51.1) -
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Income before
income taxes 379.3 272.6 1,072.9 826.9
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Income taxes 125.2 78.9 354.1 272.9
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Net income $254.1 $193.7 $718.8 $554.0
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Earnings per share:
Basic $0.37 $0.27 $1.02 $0.77
Fully diluted $0.36 $0.27 $1.00 $0.76
Average number of
common shares
outstanding during
the period 684.5 680.4
(millions)
/T/
Commenting on these results, President and Chief Executive Officer
Robert E. Brown noted that "the Corporation has registered a
substantial increase in consolidated revenues in fiscal 2000 and
net income, after net unusual items, also increased strongly to a
record $718.8 million. Improved revenues are attributable to
growth in the aerospace, transportation and capital segments while
increased net income mainly results from the excellent performance
of the aerospace segment as well as from the recreational products
segment's turnaround."
Mr. Brown also mentioned that "earnings per share for the year,
after net unusual items, increased by 32 %, in line with
management's target for the year. Bombardier management maintains
its target of 30 to 40 % earnings growth for each of the fiscal
years 2001 and 2002."
Bombardier Aerospace led the way in terms of growth with revenues
before intersegment eliminations totalling $8.1 billion in fiscal
2000, compared with $6.4 billion in fiscal 1999, an increase of 26
% mainly attributable to higher aircraft deliveries. Reflecting
growth in revenues, income before income taxes and net unusual
gain of $66.6 million rose to $903.9 million, for a 33 % increase
over the $681.9 million recorded the previous year. The margin
before income taxes and the net unusual gain rose from 10.6 % to
11.1 %.
Revenues before intersegment eliminations of Bombardier
Transportation increased by 16 % to $3.4 billion, compared with
$3.0 billion in 1998-99. This is attributable to higher
deliveries and increased work in process on key contracts in
Europe and North America. Income before income taxes and
restructuring charges of $117.7 million rose by 18 % to $174.4
million, compared with $147.9 million for the year ended Jan. 31,
1999, as a result of the increased volume of production. Margin
before income taxes and the restructuring charges rose slightly
from 5.0 % to 5.1 %.
Bombardier Recreational Products' revenues before intersegment
eliminations amounted to $1.5 billion, compared with $1.6 billion
for the year ended Jan. 31, 1999. This 10 % decline in revenues,
mainly due to lower watercraft and snowmobile sales for the 1999
season, was partially offset by initial sales of all-terrain
vehicles. Despite the decrease in revenues, Bombardier
Recreational Products returned to profitability as income before
income taxes for 1999-2000 reached $17.7 million, compared with a
loss of $45.5 million for 1998-1999. This was achieved through a
reorganization undertaken to eliminate redundancy and encourage
greater synergy in the context of reduced snowmobile and
watercraft production as well as through a reduction of
inventories of non-current models.
Revenues before intersegment eliminations of Bombardier Capital
(BC) for 1999-2000 reached $738.5 million, an increase of 29 % as
compared with $570.6 million for 1998-99. Income before income
taxes and interest allocation was $61.7 million as compared with
$66.4 million in fiscal 1998-99. Income before income taxes
totalled $28.0 million, down from $42.6 million the year before.
Assets under management for the year were $10.8 billion, an
increase of 32 % over $8.2 billion at the end of the previous
year. Performance was impacted by management's decision to
recognize income generated from securitization of manufactured
housing mortgage loan portfolios on an "As Earned" basis as
opposed to "Gain on Sale".
Bombardier Inc., a diversified manufacturing and service company,
is a world leading manufacturer of business jets, regional
aircraft, passenger railcars and motorized recreational products.
It is also a provider of financial services and asset management.
The Corporation employs 56,000 people in 12 countries in North
America, Europe and Asia, and more than 90 % of its revenues are
generated outside Canada.
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. |
