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Bombardier Inc.B (BDRBF)

  • Wed, Aug. 26, 6:20 PM
    • Bombardier’s (OTCPK:BDRAF, OTCQX:BDRBF) third-biggest CSeries customer is close to securing financing for its order, which would salvage a deal that once seemed risk of falling apart due to Western sanctions against Russia, Financial Post reports.
    • Moscow-based Ilyushin Finance said today that it is nearing a deal with lenders to finance its order for up to 49 of the jetliners, provided it can first sign an agreement with an airline that wants to operate the aircraft.
    • Separately, a high-ranking European executive at Bombardier’s train-making division has been dismissed from the company, as reports say the departure is linked to recent bribery allegations involving the company.
  • Mon, Aug. 10, 4:58 PM
    • More than half of the CSeries orders Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) is scheduled to fill over the next three years face some degree of risk that could result in delays or outright cancellations, according to a new analysis by Leeham.
    • Of the 194 CSeries scheduled to be delivered during 2016-18, 102 fall into Leeham’s yellow or red risk categories due to geopolitical or financial uncertainty, which could result in an accumulation of “white-tail” aircraft, or planes that have been manufactured but are not designated for a specific airline.
    • One of the CSeries customers with a red rating is Russian lessor Ilyushin Finance, which has placed 32 firm orders for the CSeries with options for another 10; another is Republic Airways (NASDAQ:RJET), which has ordered 40 CSeries with options for 40 more and says a shortage of pilots is forcing it to cut the flights it operates for big U.S. airlines.
  • Thu, Aug. 6, 8:54 AM
    • Bombardier’s (OTCPK:BDRAF, OTCQX:BDRBF) has been chosen to supply 62 electric locomotives to Israel for $263M.
    • State-owned Israel Railways said it would take delivery of the locomotives in 2017. It also has an option to buy 32 more.
    | 1 Comment
  • Tue, Aug. 4, 12:27 PM
    • Bombardier’s (OTCPK:BDRAF, OTCQX:BDRBF) deteriorating free cash flow could result in another liquidity crunch in 2017, leading Macquarie to reiterate its underperform rating and cut its share price target to $1 from $1.75.
    • The maker of planes and trains burned through US$808M of free cash flow in Q2, up from US$424M a year earlier, a pace that deeply concerns analyst Konark Gupta.
    • Bombardier currently has US$3.1B of cash on hand, but even if it manages to raise another US$1.25B from the planned spinoff of a minority stake in its train-making unit, cash could dwindle below US$1.5B by early 2017, Macquarie estimates.
    • Gupta also is worried about the two-year delay of the new Global 7000 business jet and margins in the segment.
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  • Thu, Jul. 30, 2:46 PM
    • Bombardier (OTCQX:BDRBF -9.8%) reports Q2 earnings that beat analyst estimates and saying the CSeries commercial plane should be ready to enter into service next year, but says its Global 7000 business jet will be delayed until H2 2018 due to development challenges.
    • "The feedback [from customers] is pretty unanimous: They understand, but they’re disappointed because they want the plane now,” CEO Alain Bellemare said during today's earnings conference call.
    • The company had previously promised a 2016 debut for the Global 7000, with the 8000 following in 2017.
    • The CEO also says the production rate for the Global 5000 and Global 6000 aircraft has been reduced from previous targets of 80 planes a year to 50-60, will have an as-yet unknown impact on cash flow this year and EBIT next year.
    • Q2 EPS was $0.06, beating the $0.05 analyst consensus estimate, while revenues rose 2% Y/Y excluding foreign exchange to US$4.6B, in-line with the US$4.61B consensus.
    | 1 Comment
  • Wed, Jul. 29, 2:19 PM
    • Bombardier (OTCQX:BDRBF +7.6%) says it is sticking with a tentative plan for an IPO of its rail business in Q4, and refutes an earlier report of merger talks with Siemens (OTCPK:SIEGY +0.2%) over the unit.
    • An IPO or sale of the rail unit would help Bombardier pare debt that ballooned to more than US$9B during development of the CSeries jet, which has been delayed by more than two years and is ~US$2B over budget.
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  • Wed, Jul. 29, 6:15 AM
    • Bombardier ([[BDRAF, OTCQX:BDRBF) may combine its train business with Siemens' (OTCPK:SIEGY) rail unit, sources told WSJ, stating that the Canada-based company is simultaneously preparing to float a minority stake of its transportation unit.
    • The news comes some months after Siemens downplayed the idea that it could combine its rail assets, which include trains, trams and signaling technology, with those of France's Alstom (OTCPK:ALSMY).
  • Wed, Jul. 22, 2:15 PM
    • Shares of Bombardier (OTCQX:BDRBF -7.2%) fall to their lowest in nearly 22 years after an industry supplier cites weak demand for large luxury planes.
    • Amin Khoury, chairman of aircraft interiors maker B/E Aerospace (BEAV -10.9%), told analysts on an earnings conference call earlier today that demand for large cabin jets has come under pressure in markets such as China, Russia and Latin America as governments and energy companies cut spending.
    • "The business-jet environment remains very tough, especially on the international front," says a Desjardins analyst.
    • Earlier: B/E Aerospace drops after missing expectations
  • Thu, Jul. 16, 12:30 PM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) names John Di Bert as its new CFO, replacing Pierre Alary, who announced his retirement in April.
    • Di Bert, who was most recently VP of customer service at Pratt & Whitney's Canadian unit, will take up his new post on Aug. 10.
    • Bombardier works closely with Pratt & Whitney, which makes the engine that powers its new CSeries commercial jet.
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  • Fri, Jul. 10, 11:57 AM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) shares continue to sink, extending historic lows following news that the airline maker is conducting a review of its Global 7000 and 8000 business jet programs, including the schedule for bringing the aircraft to market.
    • RBC analyst Walter Spracklin considers another possible explanation for the stock price rout: China Eastern Airlines' order of 50 aircraft from Boeing (NYSE:BA), which he believes was likely for the 125-seat variant of the 737, which competes directly with Bombardier’s CSeries.
    • RBC has previously highlighted China Eastern as the most likely Chinese airline to buy the CSeries based on the carrier’s current and expected fleet demands.
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  • Thu, Jul. 9, 6:35 PM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) plummeted to its lowest level since October 1993 in Toronto trading today after the company said it is re-evaluating the timeline for its Global 7000 and 8000 long-range business jets.
    • Bombardier is building the first prototype of the 7000, which will be able to fly nonstop from London to Singapore and retail for $72.8M; as recently as last year, it promised a 2016 debut for the 7000, with the 8000 following in 2017.
    • Corporate jets traditionally have been Bombardier’s most profitable division; the company has expected earnings before financing expense, financing income and taxes at the unit would total ~7% of total revenue this year.
    | 1 Comment
  • Thu, Jul. 9, 10:39 AM
    • Bombardier ((OTCPK:BDRAF), (OTCQX:BDRBF -0.6%)) is upping its efforts to find buyers for its struggling CSeries jet with a revamped sales team and better performance than advertised, Bloomberg reports.
    • The company didn't win any orders for the plane during at the Paris Air Show, and last won a sale for the jet in September 2014. The plane also faces additional issues: it's more than two years late and $1B over budget.
  • Mon, Jun. 29, 9:29 AM
    • Landing another mega contract, Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) Transportation will supply 162 Movia metro cars to Delhi Metro Rail Corporation.
    • Delivery of the order, which is valued at approximately $228M, will begin in the third quarter of 2016.
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  • Mon, Jun. 29, 8:23 AM
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  • Fri, Jun. 19, 9:00 AM
    • Bombardier's (OTCPK:BDRAF, OTCQX:BDRBF) newly-established Chinese joint venture has won the first contract for the INNOVIA Automated People Mover System.
    • The total value of the contract with Shanghai Shentong Metro is 808M yuan ($130M), with Bombardier Transportation's direct share valued at approximately 89M yuan ($14M).
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  • Thu, Jun. 18, 10:39 AM
    • Bombardier ((OTCPK:BDRAF), (OTCQX:BDRBF +2.9%)) has signed a five-year heavy maintenance agreement with Mesa Air Group for the airline's fleet of 57 CRJ900 aircraft and 20 CRJ700s.
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Company Description
Bombardier is a world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services.