Bombardier (OTCQX:BDRAF) reported on its Q1 performance today, saying both of its groups performed well despite declines in revenues and earnings, which fell from C$4.5 billion to C$4.2 billion and from C$235 million to C$224 million, respectivel. Conditions in the jet market are showing signs of stabilization with the level of business aircraft cancellations decreasing.
Net income reached C$153 million, compared to C$158 million for Q1 2010. Diluted earnings per share (EPS) were C$0.08 for Q1 2011, compared to $0.09 for the equivalent period of the previous year. The overall backlog totalled C$44.4 billion, compared to C$43.8 billion as at January 31, 2010.
The group’s cash position stood at C$3.5 billion compared to C$3.4 billion at 31 January 2010.
Bombardier Transportation's markets have been “generally resilient to the economic downturn” as the level of intake reached C$2.9 billion during Q1 compared to C$1.2 billion for the equivalent period of the previous year.
Revenues totalled C$2.3 billion, which was consistent with the previous year. EBIT (earnings before interest and taxes) reached C$135 million, or 5.8% of revenues compared to C$125 million, or 5.6%, for the same period last fiscal year. Free cash flow usage of C$27 million compares to a free cash flow usage of $260 million last fiscal year.
At Bombardier Aerospace, revenues totalled $1.9 billion, compared to $2.2 billion for Q1 2010, while EBIT reached C$89 million, compared to C$110 million.
The highlights of the quarter included the singing of a purchase agreement for 40 CS300 aircraft with Republic Airways (NASDAQ:RJET) and a framework agreement of up to $11 billion for 860 double-deck trains with the French railway group SNCF.
“Key indicators in the business jet market are showing signs of stabilization and our level of business aircraft cancellations has substantially decreased. Commercial aircraft has benefited from a breakthrough order in the United States for the CSeries aircraft and Bombardier Aerospace's overall book-to-bill ratio stands at 1.2 for the quarter, compared to 0.1 last year,” said President and Chief Executing Officer of Bombardier Perre Beaudoin.
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