Bombardier Exceeds 2016 Financial Guidance, Affirms 2017 Outlook

Bombardier Inc. announced its financial results for the fourth quarter and full year ended December 31, 2016. The company reported that its consolidated earnings and cash performance exceeded its 2016 guidance. Bombardier also affirmed its 2017 financial outlook, indicating it is on track to meet its 2018 and 2020 targets.

President and CEO Alain Bellemare stated that the company's turnaround plan is in full motion and delivering results. In 2016, Bombardier improved its cash performance by $778 million and achieved approximately 200 basis points of margin improvement in its Transportation, Business Aircraft, and Aerostructures segments. The company also completed a refinancing of $1.4 billion in senior notes during the fourth quarter, securing liquidity to execute the remaining phases of its plan.

Significant program milestones were met in 2016. Bombardier Commercial Aircraft successfully brought the CS100 and CS300 aircraft into service, with both variants now operational. The new Global 7000 business jet completed its first flight and remains on schedule for entry into service in the second half of 2018. The Business Aircraft segment exceeded its 2016 financial guidance, delivering 163 aircraft and achieving an EBIT margin before special items of 6.4%.

For 2017, Bombardier expects revenue growth in the low single digits, driven by its Transportation segment and an acceleration of C Series aircraft deliveries. The company forecasts an increase in EBIT before special items by 35% and improved margins across all segments. Free cash flow usage is expected to improve by up to $300 million.