Bombardier reports first quarter 2017 results

Bombardier reported its first quarter 2017 results. Bombardier reported revenues of US$3.6bn and EBIT before special items was US$128m. EBIT margins before special items grew to a robust 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 US$157m to US$593m for the quarter.
Business Aircraft deliveries and revenues for the first quarter reflected typical seasonal patterns, achieving in excess of 20% of full year guidance of 135 deliveries. EBIT margin before special items improved by 90 bps from 6.7% to 7.6% in the first quarter. The Global 7000 and Global 8000 aircraft program continued to make significant strides in the development, with two FTVs in flight testing, demonstrating a high degree of maturity. Subsequent to the end of the quarter, the third FTV joined the flight test program. The two remaining FTVs are in advanced stages of production. The Global 7000 aircraft is expected to enter into service in the second half of 2018.
Commercial Aircraft segment 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 US$467m. Subsequent to the end of the quarter, Transport Canada and the European Aviation Safety Agency awarded the CS100 aircraft its steep approach certifications, allowing the aircraft to operate at challenging airports such as London City Airport.