Bombardier: An Unloved Stock Despite Strong Competitive Advantages And Cheap Valuation
Jeffrey To • 50 Comments
Jeffrey To • 50 Comments
Fri, Apr. 15, 12:59 PM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) rejects an initial investment proposal from the Canadian government to shore up the company’s finances, as the two sides remain at odds over corporate governance and other issues, Bloomberg reports.
- The federal government seeks a more favorable deal than the one struck by the province of Quebec to support the CSeries jet program, and a deal before Bombardier’s annual meeting on April 29 now is unlikely, according to the report.
- The disagreement is a potential setback for Bombardier just as the company is beginning to get traction for its CSeries program; shares +9.7%.
- Now read Dow Jones: Bombardier near deal to sell up to 125 CSeries jets to Delta
Mon, Feb. 22, 12:37 PM
- United Continental (UAL +2.9%) is finalizing a second deal with Boeing (BA +1.9%) for new single-aisle jets that would block smaller rivals Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) and Embraer (NYSE:ERJ) from gaining a coveted spot in the airline’s fleet, WSJ reports.
- Boeing last month won a deal to sell 40 737-700s to United, which utilizes the 118-seat jet as a staple in its fleet.
- The number of planes in the second order is not known, but any such deal would be a blow for Bombardier, which has sought to build momentum for its new CSeries jets.
Wed, Feb. 17, 10:36 AM
- Bombardier ((OTCQX:BDRAF +13.6%), (OTCQX:BDRBF +20.5%)) investors are applauding the struggling planemaker's restructuring moves, which will slash 10% of its global workforce.
- Sentiment is also getting a big boost after a major aircraft order from Air Canada.
- Previously: Big news from Bombardier (Feb. 17 2016)
- Previously: Bombardier.A reports Q4 results (Feb. 17 2016)
Mon, Jan. 4, 7:06 PM
- Bombardier (OTCQX:BDRBF +1.5%, OTCQX:BDRAF +3.9%) -- in the midst of receiving a lifeline from the Quebec government -- is a "key anchor firm for Canada's aerospace industry," says a memo from Prime Minister Justin Trudeau's transition team that comes as it weighs financial aid for the struggling firm.
- Quebec has been seeking a match from the federal government for its $1B in aid to the company.
- The memo acknowledges that the global economy is competitive and strategic sectors like aerospace (a "'pay to play' industry") often see "significant levels of government support."
- Bombardier CEO Alain Bellemare said on Dec. 18 (when the company's CSeries craft was certified by Canada's regulators) that he saw good progress in talks with the government.
Nov. 25, 2015, 5:21 PM
- Shares in Bombardier (OTCQX:BDRBF +13.5%, OTCQX:BDRAF +5.6%) rose in their biggest gain in seven weeks after an investor presentation cheered shareholders looking for the company's direction after new government investments.
- New CEO Alain Bellemare and his team gave a presentation where they said lower production of business jets would drive down revenue as well as earnings in 2016, but that the company would target higher-profile buyers of its CSeries jets and build that fleet to 250 aircraft by 2020.
- “People like the management,” Canaccord Geniuity's David Tyerman told Bloomberg. “This management team gives a ton more information than the previous team. At least we have an idea of where we are going.”
- The company wants to deliver 30-35 CSeries craft in 2017, and up to 55 the year after that.
- The investor day was the first real news since Quebec's government and its public pension fund manager promised $2.5B in investments to mitigate liquidity risk.
- Previously: Bombardier's investor day gets underway (Nov. 24 2015)
Oct. 28, 2015, 1:03 PM
- Bombardier (OTCQX:BDRAF +12.6%, OTCQX:BDRBF +14.5%) is set to book a writedown on its CSeries program and announce that the government of Quebec will be investing in the narrowbody jet through a joint-venture, Reuters reports.
- Should a deal be reached, Quebec would be on the hook to fund half the final development costs of the new plane, which is slated to enter service next year.
- Embattled Bombardier is also poised to permanently mothball its Learjet 85 program, totaling a writedown of over $4B between the two programs.
Jul. 30, 2015, 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.
Jul. 29, 2015, 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.
Jul. 22, 2015, 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
Feb. 12, 2015, 10:55 AM
Jan. 15, 2015, 10:52 AM
- Other firms are likely to feel a pinch after Bombardier ((OTCPK:BDRAF -18%),(OTCQX:BDRBF -20.8%)) announced it's pausing its Learjet 85 program.
- Rockwell Collins (COL +0.7%) supplies the Learjet 85's avionics, Pratt & Whitney (UTX +0.7%) Canada provides the jet's engines, while LMI Aerospace (LMIA -0.2%) takes part in the plane's engineering.
Sep. 26, 2014, 10:51 AM
- Bombardier (OTCQX:BDRBF +4.4%) says it received a firm order for 40 of its new CSeries jets, with options on another 10, from leasing company Macquarie AirFinance, bringing the plane maker’s total firm orders for the new aircraft to 243.
- The CSeries program has suffered repeated delays and ballooning costs; Bombardier resumed CSeries test flights on Sept. 7 after an on-ground engine fire halted them in May.
May 21, 2014, 3:36 PM
- Bombardier's (BDRAF, BDRBF) biggest customer for the CSeries aircraft, Republic Airways (RJET), is reconsidering whether to follow through with a $3B jet order after a change in airline strategy.
- The 40 CS300 aircraft on order are no longer a top priority for RJET as it returns to its roots as a provider of regional flights for larger carriers, CEO Bryan Bedford says, adding to doubts about whether Bombardier can complete a deal valued first announced in 2010.
- Since then, Bombardier has had to postpone the debut of the model it sees as a mainstay of future revenue, and RJET has dropped plans to compete with major airlines by flying full-size jetliners such as the CSeries.
Dec. 6, 2012, 9:34 AMDelta Airlines (DAL) chooses Bombardier (BDRAF.PK) over Embraer (ERJ -5.3%) and orders 40 CRJ900 NextGen regional jets from the Canadian company, and takes an option to acquire another 30 in a deal that could be worth up to $3.29B. The initial value is $1.85B. The booking adds to orders worth billions of dollars that Bombardier received from Berkshire Hathaway's NetJets and VistaJet. | Dec. 6, 2012, 9:34 AM
Bombardier is a world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services.
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