Bombardier, Inc. today reported financial results for the second quarter of its fiscal year that, although not pretty, significantly exceeded analyst consensus expectations of net earnings reaching 9 cents per share. The company reported second quarter earnings of 11 cents per share. While overall revenues are in line with last year, profits are down, but are not as dismal as analysts expected and the company is in the black.

Bombardier reported that revenues totaled $4.9 billion, the same as the corresponding period last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totaled $313 million, compared to $371 million last fiscal year. EBIT margin reached 6.3 percent versus last year's 7.5 percent.

Net income for the second quarter ended July 31, 2009, amounted to $202 million, compared to $259 million for the same period last fiscal year. Diluted earnings per share (EPS) reached $0.11, compared to $0.14 last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totaled $18 million for the quarter, compared to $99 million last fiscal year. The cash position amounted to $2.8 billion as at July 31, compared to $3.5 billion as at Jan. 31, 2009. The overall backlog stands at $47.5 billion, as of July 31, compared to $48.2 billion as at Jan. 31, 2009, according to the company.

"We are taking the necessary actions to face the current difficult economic environment, which continues to have an impact on our results," said Pierre Beaudoin, president and CEO, Bombardier Inc. "The aerospace industry as a whole continues to experience challenging conditions; nevertheless, Bombardier Aerospace delivered 80 aircraft during the quarter, compared to 89 last year, and increased its market share position in business aircraft."

Bombardier Aerospace's revenues totaled $2.4 billion compared to $2.5 billion last fiscal year. EBIT reached $154 million translating into an EBIT margin of 6.4 percent for the second quarter ended July 31, 2009, compared to $243 million, or 9.7 percent, last fiscal year. Free cash flow usage totaled $10 million versus a free cash flow of $100 million for the same period last fiscal year. The level of free cash flow in the second quarter ended July 31, 2009 represents a $520-million improvement over the first quarter of the current fiscal year. Bombardier Aerospace's backlog totaled $19.6 billion as at July 31, compared to $23.5 billion as at January 31, 2009.

During the second quarter, the company said business aircraft cancellations continued to exceed the level of new orders. However, there are some signs of stabilization in the business aircraft industry, though historically, a lag exists between economic recovery and its positive impact on revenues. According to the latest General Aviation Manufacturers Association report, Bombardier Aerospace remains the leader in business aircraft both in terms of revenues and units delivered, the report stated.

In the commercial aircraft division, lower passenger traffic and airline profitability remain a concern, affecting the level of new orders for regional jets. Deliveries for the quarter increased to 28 aircraft compared to 23 for the same period last year. Bombardier Aerospace received orders for 15 Q400/Q400 NextGen turboprops, compared to nine for the corresponding period last year.

Participating in a 10 a.m. conference call plus a Q & A for investors and journalists were Beaudoin; Bombardier Aerospace President and CEO Guy C. Hachey; Bombardier Transportation President and COO André Navarri; and Bombardier Inc. Senior Vice President and CFO Pierre Alary. More information and the full text of the quarterly report are available at the company's Web site: www.bombardier.com.

Learjet XR 45 image credit: Bombardier