Despite net losses in its fiscal second quarter, strong sales prompted Bombardier to increase production of its CRJ 700 and CRJ 900s from one every five days to one every four days and, as a result, expects to produce 50 regional jets this fiscal year and 57 in fiscal 2009. Last October it announced cut backs in production for the CRJ 200. Related Story www.aviationtoday.com/ran/categories/commercial/6242.html The news, which included 84 net orders for regional aircraft in its fiscal second quarter, came as the company announced its fiscal results for its fiscal 2008 second quarter when it posted a net loss of $71 million, or $(0.05) per share, due to this special item, compared to a net income of $58 million, or $0.03 per share, for the same period the previous year. A net income of $8 million, or nil per share, was recorded for the six-month period ended July 31, 2007, compared to $82 million, or $0.04 per share, for the same period the previous year.
Earnings before financing income, financing expense and income taxes, from continuing operations (EBIT) before special items, grew by $87 million to reach $213 million. The EBIT margin before special items was 5.3 percent, compared to 3.6 percent for the same period last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment) reached $633 million, compared to $146 million for the same period last fiscal year. Cash and cash equivalents totaled $3 billion, compared to $2.6 billion as at January 31, 2007.
Its order backlog is at record levels of $47.9 billion, an increase of $7.2 billion compared to January 31, 2007. It also had consolidated revenues of $4 billion, compared to $3.5 billion last year.
Bombardier Aerospace
EBIT reached $133 million, an increase of $67 million compared to the second quarter of fiscal year 2007. This represents an EBIT margin of 6.0 percent, compared to last year's 3.5 percent for the same quarter. Meanwhile free cash flow rose to $477 million, an improvement of $184 million over the same period last year.
Bombardier Aerospace's backlog has grown by 38 percent since the start of this fiscal year, reaching a historically high level of $18.2 billion. Similarly, net orders for the second quarter more than doubled compared to the corresponding period last fiscal year, with 187 aircraft versus 77.
In regional aircraft, with the investment in next-generation versions of the CRJ700 and CRJ900 regional jets, and the launch of the CRJ1000 regional jet, Bombardier received 84 net orders for regional aircraft for the second quarter, including 54 orders for regional jets, compared to nine regional aircraft during the same period last fiscal year.
Turboprops also generated strong demand, with orders for 30 aircraft compared to nine for the same period last year. The 800th turboprop was delivered during the second quarter of the current fiscal year.
In a strong business aircraft market, Bombardier Aerospace gained 103 net orders in the second quarter, compared to 67 for the same period during last fiscal year. The Learjet 60 XR was also introduced into service during the quarter.