Bombardier Reaffirms Full-Year Profitability Outlook
Bombardier reported its third quarter 2016 results, indicating progress in its turnaround plan and reaffirming expectations for full-year profitability at the high end of its guidance. The company also achieved significant year-over-year cash flow improvement.
Bombardier Inc. released its third quarter 2016 financial results, highlighting continued execution of its turnaround strategy. The company confirmed its expectation that full-year profitability will be at the higher end of its previously issued guidance range.
The third quarter saw a significant improvement in Bombardier's cash flow performance compared to the same period last year. Additionally, its Business Aircraft, Transportation, and Aerostructures segments reported margin expansion. Progress was also marked by the successful first flight of the Global 7000 business jet, which remains on track for its 2018 entry into service.
Consolidated revenues for the quarter totaled $3.7 billion, bringing the nine-month total to $12.0 billion. Earnings before interest and taxes (EBIT) before special items were $87 million for the quarter and $323 million year-to-date. Margin improvements in key segments were partially offset by costs associated with ramping up production for the C Series aircraft program.
Bombardier now forecasts full-year revenues of approximately $16.5 billion. Despite a revised delivery forecast for the C Series aircraft due to engine supply delays, the company expressed strong confidence in exceeding profitability targets across all its business segments.