Bombardier Secures Major C Series Order, Reports Q1 Financial Results
Bombardier announced a significant order from Delta Air Lines for up to 125 C Series aircraft and reported $3.9 billion in revenue for the first quarter.
Bombardier Inc. released its financial results for the first quarter of 2016, ending March 31. The company also announced a major order from Delta Air Lines for 75 CS100 aircraft, with options for an additional 50.
For the first quarter, Bombardier reported revenues of $3.9 billion and a backlog of $58.9 billion. Earnings before interest and taxes (EBIT) stood at $56 million. The company recorded a special charge of $112 million related to workforce optimization.
The Delta order, valued at approximately $5.6 billion based on list prices, marks the largest C Series order to date. Deliveries are scheduled to begin in 2018. With this significant agreement, the C Series program is expected to enter service with a backlog of over 300 firm aircraft, and up to 800 including options and commitments.
President and CEO Alain Bellemare stated that the company's turnaround plan is gaining momentum and that Bombardier remains on track to achieve its 2016 guidance and 2020 goals. Cash flow usage for the C Series program in the first quarter was approximately $200 million, consistent with the company's full-year projection of $1.0 billion in usage.