Bombardier’s revenues for the quarter were US$4.3 billion. Adjusted EBITDA and adjusted EBIT for the quarter were US$312 million and US$206 million respectively, mainly driven by a 7.0% adjusted EBIT margin at Business Aircraft while Transportation recorded a 5.1% adjusted EBIT margin. Transportation’s lower margin reflects additional cost pressure mainly on its large, complex legacy projects. On a reported basis, EBIT of US$371 million is largely driven by the gain of US$219 million on the sale of the Q Series program.
Free cash flow usage was US$429 million for the quarter and US$1.5 billion year to date, in line with the Company’s expectations for the first half of 2019.
Business Aircraft revenues increased by 6% year-over-year to US$1.4 billion on 35 deliveries, including 2 Global 7500 aircraft. Adjusted EBITDA for the quarter was stable year-over-year at US$146 million, even as production ramps up on the Global 7500. The adjusted EBIT margin of 7.0% during the quarter is lower against the same quarter last year, mainly as a result of higher amortization associated with Global 7500 deliveries. EBIT margin for the quarter was 6.1%.Light jet operators, while delivering better performance.
Commercial Aircraft: on May 31, 2019, the Corporation completed the previously announced sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), a wholly owned subsidiary of Longview Aviation Capital Corp., for gross proceeds of US$298 million.
During the quarter, the Corporation entered into a definitive agreement with Mitsubishi Heavy Industries (MHI) for the sale of its regional jet program for a cash consideration of US$550 million payable upon closing, and the assumption by MHI of liabilities related to credit and residual value guarantees and lease subsidies amounting to approximately US$200 million. The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
Revenues reached US$516 million during the quarter on increased deliveries, including 6 Q400 deliveries prior to completion of the Q Series aircraft program sale and 11 CRJ. Year-over-year revenues decrease is due to C Series deliveries included in the comparable for the first half of 2018.
Adjusted EBIT of US$12 million includes US$21 million contribution from commercial aircraft programs, offset by US$9 million share of net loss in ACLP. EBIT for the quarter of US$226 million is largely driven by the US$219 million gain on the sale of the Q Series aircraft program to Longview.
