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Bombardier Inc.B (BDRBF)

  • Wed, Apr. 15, 5:48 PM
    • Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) has hired UBS and Citigroup to advise on a potential IPO or sale of its rail unit, which could be valued at ~$5B in a sale, Bloomberg reports.
    • Splitting off the rail unit would allow management to focus on turning around the aerospace unit, which posted a 2014 loss of $995M; the rail unit - whose products include locomotives, subway cars and signaling and control equipment - is the healthier part of the company, with 2014 earnings of $429M.
    • GE and Alstom (OTCPK:ALSMY, OTCPK:AOMFF) are speculated to have interest in the rail unit.
  • Fri, Apr. 10, 10:41 AM
    • Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) is exploring ways to raise money from its transportation unit, potentially worth up to $5B, as it struggles with huge cost overruns in its aircraft business, Reuters reports.
    • Options could include a possible sale of all or part of the business - which provides rail vehicles, signaling and control equipment - as well as an IPO to retain Bombardier's exposure to the healthier half of the business.
    • A merger with another sector peer such as Siemens (OTCPK:SIEGY) or Alstom (OTCPK:ALSMY, OTCPK:AOMFF) also could be considered, according to the report.
    • Discussions are said to be in the early stages.
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  • Thu, Apr. 9, 10:30 AM
    • Bombardier’s (OTCQX:BDRBF, OTCPK:BDRAF) third-biggest CSeries customer says it is rethinking its order, blaming mounting delays and the lack of financing available for Russian companies.
    • The news that Moscow-based Ilyushin Finance Co. is re-evaluating its CSeries order comes less than two weeks after Bombardier CEO Alain Bellemare said the aircraft would not begin commercial flights until 2016, three years later than originally planned.
    • Separately, Bombardier says it named Fred Cromer as president of its commercial aircraft division to succeed Mike Arcamone, who is leaving to pursue other interests, and says Pierre Alary will retire as CFO but stay on the job until an international search for his successor has been completed.
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  • Fri, Mar. 27, 3:43 PM
    • Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) says it does not expect its CSeries aircraft to begin carrying commercial passengers until early 2016, pushed back from H2 2015, in another setback for the jetliner program.
    • New CEO Alain Bellemare says the CSeries will be certified in 2015 but will not be delivered until next year, three years later than originally planned; the plane, which Bombardier launched to compete in the 100-seat-plus category long dominated by Boeing (NYSE:BA) and Airbus (OTCPK:EADSF, OTCPK:EADSY), has run into a series of technical glitches and other setbacks, and program costs have surged to $5.4B from an original estimate of $3.4B.
    • Crossing into 2016 also means Bombardier would record the jet’s first revenue and delivery cash flow in its new fiscal year.
  • Fri, Mar. 20, 6:13 PM
    • With shares down 40% in the past year and debt more than twice its market value, struggling Bombardier (OTCQX:BDRBF) needs to sell some of its businesses and find a focus fast, analysts say.
    • New CEO Alain Bellemare said this week he is leaving all options open, which has some analysts predicting asset sales that could range from the Learjet division for as much as $750M to a stake in the rail business, which had 2014 revenue of more than $9B.
    • Selling off pieces could reassure investors that Bombardier can handle rising interest payments and make a start in cleaning up its debt, analysts say.
    • Bombardier’s controlling family would need to back any such plans and may not feel the need to consider a breakup right now, but analysts tell Bloomberg that Textron (NYSE:TXT) and Embraer (NYSE:ERJ) may be drawn to Learjet, while Alstom (OTCPK:ALSMY) could be a potential suitor if Bombardier offers a stake in its rail unit.
  • Fri, Mar. 20, 9:22 AM
    • Deutsche Bahn and Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) have agreed on an out-of-court settlement regarding various vehicle projects, settling their long-standing legal disputes.
    • The types of trains covered under the settlement include Berlin S-Bahn vehicles, Regional and Commuter trains in Bavaria, North Rhine-Westphalia and Baden-Wurttemberg and the Talent 2.
  • Thu, Mar. 19, 8:06 AM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) has signed contracts with the cities of Dusseldorf and Cologne for the delivery of 62 Flexity light rail vehicles.
    • Dusseldorf contract: 42 vehicles, with an option for 16 additional vehicles, valued at €127M.
    • Cologne contract: 20 vehicles, valued at €64M.
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  • Tue, Mar. 17, 7:44 AM
    • A new privately held Malaysian airline intends to buy 20 Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) CS100 aircraft for $1.5B, in what could be the planemaker's first order in Southeast Asia for its long-delayed CSeries passenger jet program.
    • The airline, called flymojo, could also buy 20 more aircraft, raising the value of the deal to $2.94B.
  • Thu, Mar. 12, 12:19 PM
    • Bombardier (OTCQX:BDRBF) loses the second prospect within a week for its CSeries aircraft after Lufthansa (OTCPK:DLAKF) instead chose for Embraer (NYSE:ERJ) jets to renew the short-haul fleet of its Austrian subsidiary.
    • Austrian will get 17 Embraer 195 models to replace Fokker aircraft, replacing a group of aircraft that was 21 years old on average with models that are just four years old, Lufthansa said today after announcing earnings.
    • Lufthansa’s decision to favor ERJ is another blow for the Canadian manufacturer, after Qatar Airways said last week it is no longer considering the airliner.
  • Thu, Mar. 12, 9:27 AM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) and Mesa Air have signed a firm purchase agreement for seven CRJ900s, which will be operated under the American Eagle brand, in the American Airlines network.
    • Based on list prices, the firm order is valued at approximately $326M.
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  • Mon, Mar. 9, 2:41 PM
    • Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) is nearing an agreement to have Lufthansa's (OTCPK:DLAKF) Swiss Air unit serve as the first operator of the new CSeries jetliner, to be completed as soon as this week, WSJ reports.
    • As a result of the deal, the start of revenue service for the new jet reportedly would come as much as six months after Bombardier receives regulatory approval for the first model of CSeries in late 2015.
    • The move would be a reversal for Lufthansa, which has long said it would not serve as first operator of the new 125-seat CSeries jet.
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  • Fri, Mar. 6, 12:57 PM
    • Bombardier's (OTCQX:BDRBF, OTCPK:BDRAF) CSeries program has suffered from delays and cost overruns, but the company says the aircraft itself is tracking and even exceeding performance targets after 1,100 hours of flight testing, which could help secure more orders.
    • "People are going to start to realize that this is an airplane that’s going to be not only as good as promised but perhaps better than promised," says the managing director of aviation consultancy Leeham Co.
    • The company is not specifying exactly which numbers are coming in better than expected, saying it plans to release more details at the Paris Air Show in June; it will tbe he first time Bombardier will showcase the CSeries in such a setting since an engine fire grounded the plane last year.
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  • Wed, Mar. 4, 5:35 PM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) may need to take a significant writedown on its CSeries program, and could even find a sale of the entire project as a viable option, according to Scotiabank analyst Turan Quettawala.
    • The analyst expects normalized CSeries deliveries of ~65/year for the next 10 years, but the result generates negative value for the company at a program cost of $5.4B; even using management’s "optimistic forecasts" of ~100 planes/year, Quettawala thinks the program generates zero to negative value over 20 years now that the project cost has ballooned by more than $2B.
    • Quettawala says selling the CSeries could be a viable option for Bombardier, as it could help the company recoup half or more of its project cost, but he  is "not sure if management is willing to throw in the towel just yet or if the political climate would allow this scenario to occur."
    • Meanwhile, Bombardier has canceled the investor day it had scheduled for next week and may not hold one at all this year.
  • Fri, Feb. 27, 4:44 PM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) reportedly boosted the size of a two-tranche, high-yield debt offering to $2.25B from the targeted $1.5B - raising $1.5B from an offering of 10-year bonds with a coupon of ~7.5% and another $750M from an issue of 3.5-year bonds with an expected coupon of ~5.5%.
    • Also, Bombardier says it raised $868M in an equity offering that was part of the financing plan, almost 45% above the original $600M target.
    • The financing success came on the same day the ccompany’s new larger CSeries CS300 jetliner made its maiden flight.
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  • Fri, Feb. 27, 7:19 AM
  • Wed, Feb. 25, 8:29 AM
    • Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) has confirmed it is targeting Thursday for the maiden flight of its new CSeries CS300 jetliner.
    • The company has struggled to secure orders for the jet, facing design issues that have pushed back its expected entry into service.
    • So far, only 243 firm orders have been placed, with around two-thirds of them for the larger CS300.
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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.