Bombardier Announces 2018 Results
Bombardier Inc. reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier's consolidated revenue in 2018 reached $ 16.2 billion, reflecting a 3% average increase over the same period last year for transport, business aircraft and aerobic structures without considering the effect of currency. The ratio between books and accounts (2) in transport and the business aircraft for the year was 1.1, which indicates a high demand for Bombardier products and services. Bombardier’s consolidated backlog at the end of 2018 was $ 53.1 billion, which supported future growth targets.
EBIT, before special positions continued to improve in 2018, increased by 42% over the same period last year from 725 million US dollars to more than 1.0 billion US dollars, which is the highest indicator of the company's management. EBIT margin of 6.3% to special items in 2018 represents a significant increase of 330 bps. from the beginning of the turnover plan in 2015, which is significantly higher than the originally planned range of 5–6%. According to the reported data, EBIT increased by 235% compared to the same period last year and amounted to 1.0 billion dollars. United States, representing a margin of 6.2%.
In the fourth quarter of 2018, Bombardier provided free cash flow of $ 1.0 billion. Dollars. The annual volume of free cash flow amounted to 182 million dollars, which is a high indicator of the revised forecast of the company. This amount includes cumulative net revenues of about $ 750 million from the sale of Downsview property and the monetization of royalties associated with a previously announced CAE transaction. Operating cash flows for the year totaled $ 597 million, and in the fourth quarter - $ 1.3 billion. Bombardier ended the year with a solid cash position, with $ 3.2 billion in cash and cash equivalents.
More information is available on the official website of Bombardier Inc.