Bombardier Aerospace Delivers 244 Aircraft in Fiscal Year 2010/11
February 17, 2011 — Montréal
- Business aircraft: 143 deliveries; 107 net orders
- Commercial aircraft: 97 deliveries; 93 net orders
- Amphibious aircraft: 4 deliveries; 1 net order
Bombardier Aerospace announced today that it delivered 244 aircraft for the fiscal year ending January 31, 2011, compared to 302 aircraft deliveries in the previous fiscal year 2009/10 (year ending January 31, 2010). It received 201 aircraft orders, net of cancellations, compared to 11 orders, net of cancellations, for the previous fiscal year. The fourth quarter was especially strong for business aircraft, with 74 net aircraft orders. Bombardier Aerospace had a solid performance despite the continued impact of the economic environment on the aviation industry and the slower than anticipated recovery from the global financial crisis.
In fiscal year 2010/11, Bombardier delivered 143 business jets, compared to 176 for the same period last fiscal year. For the same time period, Bombardier delivered 97 commercial aircraft, compared to 121 for the previous fiscal year. These delivery results are essentially in line with the previously announced guidance to deliver approximately 15 per cent less business aircraft and 20 per cent fewer commercial aircraft in fiscal year 2010/11, compared to the previous fiscal year.
"With a comprehensive portfolio of products, we believe our fundamentals are strong in the long term for both the business and commercial aircraft markets," said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. "The aviation industry is cyclical by nature and Bombardier's long history of success is attributable to our ability to face each challenge head-on, focus on the things we can control and put our plans into action," continued Mr. Hachey. "Over the past years, we have taken significant steps to strengthen our operations and continue to invest in our future programs. By meeting the challenges of today and setting our sights on the future, we believe we are creating a loyal customer base for our products and services, and will emerge from this difficult environment a stronger and more efficient company."
Delivery guidance for calendar year 2011
As of February 1, 2011, Bombardier reports its financial results under International Financial Reporting Standards (IFRS). Our intent is also to request approval from our Board of Directors in December 2011 to change our financial year-end from a fiscal year-end of January 31, to a calendar year-end of December 31. If this change of year-end reporting is accepted, Bombardier Aerospace's fourth quarter would end on December 31, 2011, covering only two months (November and December), and result in a fiscal year of 11 months rather than a 12-month reporting period.
Going forward under IFRS, Bombardier Aerospace's revenue recognition policy will be aligned for all its aircraft programs and revenues will be recognized only upon delivery of the completed aircraft to the customer. This change in reporting impacts Bombardier's medium and large families of business aircraft (Challenger and Global). Currently, under the Canadian Generally Accepted Accounting Principles (GAAP), Bombardier recognizes deliveries of these business aircraft programs partially at "green" (i.e. before exterior painting and installation of interiors and optional avionics) and partially at delivery of the completed aircraft. Under the new IFRS rules, revenues will be recognized only when the completed aircraft is delivered to the customer.
Our delivery guidance for 2011 is based on IFRS and an 11-month year*.
Bombardier's business aircraft deliveries for the calendar year 2011 are expected to be approximately 150 units.
Bombardier's commercial aircraft deliveries for the calendar year 2011 are expected to be approximately 90 units.
Tables at the end of this press release provide delivery totals and net order totals for business, commercial and amphibious aircraft for fiscal years 2010/11 and 2009/10 under Canadian GAAP.
A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2010, were $19.4 billion, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com.
* Please refer to the "Risks and Uncertainties" section of the Management's Discussion and Analysis included in Bombardier's fiscal year 2009/10 annual report.
Bombardier, Bombardier 415, Challenger, CRJ, CSeries, Global, Learjet, Q-Series and Q400 are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.
Fiscal years 2010/11 and 2009/10 delivery totals
Fiscal year 2010/11
(Year ending Jan. 31, 2011)
Fiscal year 2009/10
(Year ending Jan. 31, 2010)
|(Including those in the fractional ownership program**)||143||176|
** An aircraft delivery is included in the above table when the equivalent of 100 per cent of the fractional shares of an aircraft model has been sold to external customers.
Fiscal years 2010/11 and 2009/10 net order totals
Fiscal year 2010/11
(Year ending Jan. 31, 2011)
Fiscal year 2009/10
(Year ending Jan. 31, 2010)
|(Including those in the fractional ownership program***)|
*** An aircraft order is included in the above table when the equivalent of 100 per cent of the fractional shares of an aircraft model has been sold to external customers.
All fiscal year 2010/11 delivery and order numbers are unaudited and are provided under Canadian GAAP.
This press release includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the "Corporation") to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation's actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on current information available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the respective Forward-looking statements sections in BA and BT in the Management's Discussion and Analysis ("MD&A") of the Corporation's annual report for fiscal year 2010.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with the Corporation's business environment (such as the financial condition of the airline industry), operational risks (such as risks involved in developing new products and services, risks in doing business with partners, risks relating to product performance warranty, casualty claim losses, risks from regulatory and legal proceedings, environmental risks, risks relating to the Corporation's dependence on certain customers and suppliers, human resource risks and risks resulting from fixed-term commitments), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers and to reliance on government support, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants) and market risks (including foreign currency fluctuations, changing interest rates and commodity pricing risk). For more details, see the Risks and Uncertainties section of the MD&A of the Corporation's annual report for fiscal year 2010. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect the Corporation's expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|CAUTION REGARDING NON-GAAP EARNINGS MEASURES
This press release is based on reported earnings in accordance with Canadian generally accepted accounting principles (GAAP). It is also based on EBITDA, and Free Cash Flow. These non-GAAP measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by GAAP; therefore, others using these terms may calculate them differently. Management believes that a significant number of the users of its MD&A analyze the Corporation's results based on these performance measures.