SA News • Today, 9:43 AM
How Bombardier Could Benefit From Russia-Ukraine And Should Also Change Its Strategy
- Bombardier is cheap at the moment with a P/E of 11.
- The Russian-Ukrainian situation offers opportunities.
- Bombardier should also focus on the strong points of its aircraft and use these to increase revenue.
- Exiting or partnering of the CSeries airliner would be good for profitability.
Bombardier: An Unloved Stock Despite Strong Competitive Advantages And Cheap Valuation
- The growing global economy, combined with increasing demand for cost-effective aircraft and trains provides Bombardier with an expanding market catering to its competitive advantage.
- Heavy capital expenditures in previous years has provided Bombardier with cutting-edge technologies, positioning the company well for growth.
- Rising interest rates will significantly reduce pension liabilities- a unique trait given the mix of defined benefit and defined contribution pension plans Bombardier sponsors.
- Sell-off leaves Bombardier trading cheaply on both absolute and relative valuations, despite huge opportunities for growth.
Bombardier And Embraer: The Battle For Bronze With 20% Upside
Going Long The World's Third-Largest Aircraft Manufacturer
Today, 9:43 AM
- Providing a springboard for more orders, Bombardier ((OTCQX:BDRBF), (OTCPK:BDRAF)) expects to receive safety certification from China for its high-speed trains as early as next month.
- The regulatory clearance means the company will be able to begin delivering 80 of its CRH380D trains first ordered in 2009, worth an estimated $2B.
- Bombardier, which has five joint ventures in the country, is the only foreign firm in China able to take orders for a whole high-speed train.
Mon, Jan. 26, 11:11 AM
Mon, Jan. 26, 7:37 AM
- Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) is suspending work on its contract to build the city of Montreal’s new metro cars for six months due to a supplier problem on critical software for the rail equipment.
- About a third of the company’s 430 workers at the company’s train plant in La Pocatiere, Quebec will be laid off temporarily.
Wed, Jan. 21, 8:37 AM
- Shares of Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) could dip under $2 as the firm faces added downside from execution and potential liquidity risks writes Peter Arment, Josh W. Sullivan and Asher Carey in Barron's.
- Sterne Agee sees the Underperform-rated stock with a PT of $2 instead of $3.10 based on 7x enterprise value to EBITDA utilizing 2015 estimates.
Wed, Jan. 21, 7:36 AM
Fri, Jan. 16, 4:54 PM
- Bombardier’s (OTCQX:BDRBF, OTCPK:BDRAF) cash levels are getting “uncomfortably close” to the minimum needed to run the company, analysts said today, extending losses for a second day after the company cut its guidance and suspended its Learjet 85 program.
- Bombardier warned that operating cash flow will total ~$800M for this year instead of a previous forecast of $1.2B-1.6B, free cash flow is expected to come in at zero, and its cash balance at the end of 2014 was just $2.4B.
- “Considering the company requires $2B in cash to start the year, the current cash level is coming uncomfortably close to the required cash balance,” according to RBC analyst Walter Spracklin, who lowered his 12-month price target for the stock to $3.50 from $4.
Fri, Jan. 16, 7:25 AM
- The downgrades are starting to pile up after Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) paused its Learjet 85 program on Thursday and revised it 2014 guidance.
- The stock has now been lowered to Neutral at Citigroup and downgraded to Sector Performer from Outperformer at CIBC.
- Bombardier shares plummeted over 20% yesterday following the news.
Thu, Jan. 15, 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.
Thu, Jan. 15, 8:12 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) has decided to pause its Learjet 85 program due to weak market demand, and will record a pre-tax special charge of approximately $1.4B in Q4 related to the impairment of Learjet 85 development costs.
- Updating its guidance for 2014, the company expects cash flow from operating activities at its Aerospace division to be approximately $800M compared with a previous guidance of $1.2B-$1.6B, while net additions PP&E and intangible assets are expected to be approximately $1.8B vs. $1.6B-$1.9B.
- Bombardier is also reducing its workforce by approximately 1K employees, and will record a severance provision of approximately $25M as a special item during the first quarter of 2015.
Fri, Jan. 9, 6:56 AM
- Bombardier's (OTCPK:BDRAF, OTCQX:BDRBF) CSeries program has taken another hit, after the senior vice president in charge of the CSeries and other commercial aircraft sales announced his resignation.
- A series of missteps have shaken the project, including development problems that delayed the first model’s planned late-2013 delivery date by as much as two years, ballooning costs and a major engine failure last May that halted test flights for 100 days.
- Bombardier had 243 firm CSeries orders when it last reported earnings on Oct. 30.
Dec. 31, 2014, 7:23 AM| Comment!
Dec. 30, 2014, 11:04 AM
Dec. 29, 2014, 8:07 AM| Comment!
Dec. 16, 2014, 8:30 AM
- Bombardier (OTCQX:BDRBF, OTC:BOMBF) has won a 10-year contract to maintain Trenitalia's fleet of high speed trains. The contract will be executed in association with Bombardier’s consortium partner AnsaldoBreda, an Italian rail transport engineering firm.
- Bombardier’s share of the contract is valued at approximately €154M ($191M).
Nov. 18, 2014, 7:48 AM| Comment!
Nov. 12, 2014, 10:25 AM
- Bombardier ((OTCQX:BDRBF +0.1%), (OTC:BOMBF)) is considering designing and building passenger jets in China as an extension of a two-year-old development and sales deal with the country's main state-owned planemaker, Commercial Aircraft Corp of China.
- "We are thinking long-term in China," says Mike Arcamone, president of Bombardier's commercial aircraft division. "One day we might decide to do a project together, a joint venture...Right now, we are only talking about collaboration."
- Bombardier is currently working with COMAC to develop common systems for both its own 150-seat CSeries plane and the Chinese firm's C919 narrow-bodied jet.
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