Bombardier reports third quarter 2016 results

Bombardier reported consolidated revenues of US$3.7bn in the quarter and $12.0bn in the nine-month period, following the planned reduction in business aircraft revenues and the deferral of revenue recognition following active project and cash management in Transportation. EBIT before special items was US$87m and US$323m respectively for the quarter and year-to-date period, as margin improvements at Business Aircraft, Transportation and Aerostructures and Engineering Services were partially offset by the production ramp-up effect of the C Series aircraft program. Free cash flow usage improved by US$496m and US$809m respectively for the quarter and the nine-month period, reflecting continuous cash discipline and lower development spend following the certification of both the CS100 and CS300 aircraft. With the completion of the equity investment by the Government of Québec (through Investissement Québec), Bombardier boasted a strong liquidity position of US$4.4bn as at September 30, 2016. These results give Bombardier strong confidence in exceeding its profitability targets in all its business segments, leading to a consolidated EBIT before special items guidance between US$350m and US$400m for 2016. The Company is also refining its revenue guidance to approximately US$16.5bn and confirming its consolidated free cash flow usage guidance to the range of US$1.15bn to US$1.45bn, as previously announced, following a revised delivery forecast for the C Series aircraft program as a result of engine delivery delays.