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Bombardier Q4 and Full Year 2016 Earnings Call Live Blog

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Bombardier Q4 and Full Year 2016 Earnings Call Live Blog

Bombardier Q4 and Full Year 2016 Earnings Call Live Blog
February 16
07:55 2017

MONTREAL – Bombardier Inc., the parent company of aircraft manufacturer Bombardier Aerospace, reported a $259 million net loss for the fourth quarter of 2016, narrowing by 61.7% year-over-year. For the full year, it reported a $981 million net loss, a figure that shrank 81.6% YOY. However both figures, while poor in absolute terms, bettered the guidance that Bombardier had presented to investors over the past year.

Bombardier generated these full year results on a base of $16.3 billion, down 10.1% YOY mainly driven by declines in revenue at Bombardier Transportation (BT) and Bombardier Business Aircraft (BBA). Honing in on results at BBA, revenue for the full year dropped 17.9% YOY to $5.74 billion on a similarly sized decline in orders. Net orders jumped sharply YOY by 138 frames in absolute terms (to 114 jets) with gross orders topping 150 planes. These figures yielded a book to bill ratio of 0.7 and the earnings before interest and taxes (EBIT) swung from a net loss of $1.25 billion to a net profit of $477 million. EBIT before special items was slightly smaller ($369 million) and only up 19.8% YOY. Still, EBIT margin before special items was a healthy 6.4%.

Switching to Bombardier Commercial Aircraft (BCA), revenue grew 9.3% YOY to $2.6 billion on delivery growth of 13.2%. Net orders jumped sharply to 161 frames thanks to purchases of the CSeries by Air Canada and Delta , pushing Bombardier to a very healthy book to bill ratio of 1.9. Absolute EBIT improved sharply year over year to a $903 million net loss versus $3.97 billion a year prior. However EBIT excluding special items worsened YOY to a $417 million net loss from $170 million a year prior for a negative EBIT margin excluding special items of -15.9%.

Airways Senior Business Analyst Vinay Bhaskara will live-blog Bombardier’s Q4 and full year earnings call. You can re-read his live blog below via the ReplyAll tool.

Note: Vinay will only be commenting on Bombardier Aerospace details from the call as Bombardier Transportation is outside the jurisdiction of Airways


About Author

Vinay Bhaskara

Vinay Bhaskara

Senior Business Analyst, Big Airline Enthusiast, Avid Airport Connoisseur, Frequent Flyer, Globetrotter. I Miss Northwest Airlines Every Day. @TheABVinay

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