Bombardier Reports First Quarter 2017 Results

Bombardier has reported revenues of $3.6 billion and EBIT before special items was $128 million. EBIT margins before special items grew to 8.0% at transportation, 7.6% at business aircraft and 7.5% at aerostructures, while commercial aircraft recorded an EBIT loss in line with the prior year. Free cash flow usage improved by $157 million to $593 million for the quarter.

"We continue to gain momentum as we execute our transformation plan and begin to unleash the full value of the Bombardier portfolio," said Alain Bellemare, President and Chief Executive Officer, Bombardier. "Our continued margin expansion and improving cash performance demonstrate both the early benefits of our actions and the long-term potential of our company."

Bombardier also announced that Pierre Beaudoin intends to step down as Executive Chairman of the Board effective June 30, 2017. Beaudoin will continue to serve as Non-Executive Chairman.

"This change reflects the very successful transition of Bombardier's executive leadership to Alain over the past two years," said Beaudoin. "As Chairman I look forward to working with the Board of Directors to provide continuing support to Alain and the leadership team. The Company is firmly on the right path, with a very strong leadership team now in place to execute its turnaround plan and return Bombardier to long-term, sustainable growth."

Bombardier stated that the C Series aircraft are performing well with now 10 C Series aircraft in service with both Swiss International Air Lines (SWISS) and Air Baltic Corporation AS (airBaltic). The manufacturer has significantly ramped-up C Series aircraft production in the first quarter in preparation for an acceleration of deliveries in the second half of 2017, which will be driven by the recently awarded London City Airport steep approach certification for the CS100 aircraft as well as the anticipated delivery of the first CS300 aircraft to SWISS and the entry into revenue generating service of the CS300 aircraft in Korean Air's fleet.

During the quarter, Bombardier received orders for 10 CRJ900 aircraft from CityJet, increasing its CRJ Series fleet to 22 aircraft. Based on list price, the firm orders are valued at $467 million.