THUNDER BAY – Business is up at Bombardier. The company is reporting increased earnings for the second quarter of 2001. In Thunder Bay, Bombardier is busy building products for the City of Toronto. Across the globe, the company is busy both in the train transportation and airplane manufacturing divisions of the company.
Bombardier has reported its financial results for the second quarter ended July 31, 2011. This is the second interim reporting period under IFRS. Revenues increased by 17% to reach $4.7 billion, compared to $4 billion for the corresponding period last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled $296 million, versus $249 million last fiscal year. The EBIT margin stands at 6.2%, the same as last fiscal year.
Net income for the second quarter ended July 31, 2011 amounted to $211 million, compared to $138 million for the same period last fiscal year. Diluted earnings per share (EPS) was $0.12, compared to $0.07 last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) usage totalled $1.1 billion for the second quarter ended July 31, 2011, compared to a usage of $562 million last fiscal year. The cash position amounted to $3.2 billion as at July 31, 2011, compared to $4.2 billion as at January 31, 2011. The overall backlog reached $56.9 billion as at July 31, 2011, compared to $52.7 billion as at January 31, 2011.
“We delivered good results for the second quarter with increased revenues, profitability and EPS,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
Bombardier Transportation increased its revenues by 26%, reaching $2.7 billion for the second quarter ended July 31, 2011, compared to $2.1 billion for the same period last fiscal year. EBIT was $191 million, compared to $148 million last fiscal year, translating into an EBIT margin of 7.2% versus 7% last fiscal year. Free cash
flow usage amounted to $473 million for the second quarter ended July 31, 2011, compared to a usage of $122 million for the same period last fiscal year. The order backlog totalled $33.9 billion as at July 31, 2011, compared to $33.5 billion as at January 31, 2011.
During the second quarter, Bombardier Transportation reported $3.9 billion of new orders, representing a book-to-bill ratio of 1.5, compared to $4.3 billion of new orders last fiscal year.
The orders included a partnership with Siemens AG of Germany for the development and supply of components for ICx high speed trains for a Deutsche Bahn (DB) contract, under which a firm order was obtained for 130 trains valued at $1.8 billion. Bombardier Transportation also won an order from the London Underground for a CITYFLO 650 CBTC signalling system for a value of $577 million as well as an order from the Queensland Government of Australia for the Gold Coast Rapid Transit light rail system and a 15-year maintenance contract, for a value of $265 million.
During the quarter, Bombardier Transportation also signed a framework agreement with DB Regio AG, Germany, for 200 TRAXX diesel locomotives with multi-engine propulsion, estimated at $867 million. Under this agreement, a firm order for 20 locomotives was received, valued at $90 million.
Subsequent to the end of the second quarter, the Chicago Transit Authority (CTA), U.S. exercised an option for 300 additional rapid transit cars, valued at $331 million.