Bombardier charts net loss of US$98m for financial year 2016

Despite a substantial improvement over the company’s loss of US$5.34bn for the financial year 2015, Bombardier, the Canadian plane and train manufacturer has reported continued losses for the financial year 2016 at US$981m. While 2015’s loss was sweetened by the announcement of a substantial order, Bombardier Aerospace, the world’s third-largest aircraft manufacturer had no such additional sales announcements to deliver with these results. Revenue fell US$1.8bn compared to 2015, at US$16.34bn. According to the Bombardier President and CEO, Alain Bellemare, the company is “actively engaged” with many customers over potential C Series orders. “Nothing has changed. If there’s anything, we’re just more confident than we were a year ago.” Bellemare is facing the major challenge of reshaping Bombardier after its shares fell to an all-time low in 2016. Based on a press release issued by Bombardier, the company exceeded its 2016 guidance range for EBIT before special items; improved its year-over-year cash performance by US$778m; and delivered approximately 200 basis points of margin improvement at its Transportation, Business Aircraft and Aerostructures segments. Business Aircraft’s 2016 financial performance exceeded guidance on all fronts, delivering a total of 163 aircraft, while reaching revenues of US$5.7bn and EBIT margins before special items of 6.4%, a 200-basis point improvement over the prior year.
Commercial Aircraft reached a historic milestone in 2016 as it certified and brought to market both variants of the C Series aircraft, the first all-new clean-sheet designed family of single-aisle aircraft in the 100- to 150-seat segment in nearly 30 years. With a total of seven aircraft delivered by year end, both the CS100 and CS300 aircraft are delivering on their operating cost advantage, superior operating flexibility, exceptional performance and range, as well as passenger comfort.
During the year, significant orders solidified the C Series aircraft program in the 100- to 150-seat category. A total of 129 firm orders and 80 options were added to the backlog, from Delta Air Lines, Air Canada, airBaltic and Air Tanzania, with a combined value of US$10.1bn at list prices.