Bombardier Inc.: Bombardier Announces Financial Results for the Second Quarter Ended June 30, 2014

Bombardier Inc.: Bombardier Announces Financial Results for the Second Quarter
                             Ended June 30, 2014

Bombardier Inc. / Bombardier Announces Financial Results for the Second
Quarter Ended June 30, 2014 . Processed and transmitted by NASDAQ OMX
Corporate Solutions. The issuer is solely responsible for the content of this
announcement.

MONTRÉAL, QUÉBEC--(Marketwired - July 31, 2014) - Bombardier Inc.
(TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF)

(All amounts in this press release are in U.S. dollars unless otherwise
indicated. This press release contains both IFRS and non-GAAP measures.
Non-GAAP measures are defined and reconciled to the most comparable IFRS
measures in the Corporation's MD&A. See Caution regarding non-GAAP measures at
the end of this press release.)

  *Revenues of $4.9 billion, compared to $4.4 billion for the same period
    last fiscal year
  *EBIT before special items^(1)of $257 million, or 5.3% of revenues,
    compared to $257 million, or 5.8%, for the same period last fiscal year
  *Adjusted net income^(1)of $192 million (adjusted EPS^(1)of $0.10),
    compared to $158 million (adjusted EPS of $0.09) for the same period last
    fiscal year
  *Free cash flow usage^(1)of $424 million, compared to a usage of $566
    million for the same period last fiscal year, including a net investment
    of $525 million in PP&E and intangible assets
  *Available short-term capital resources of $3.9 billion, including cash and
    cash equivalents of $2.5 billion as at June 30, 2014, compared to $4.8
    billion and $3.4 billion, respectively, as at December 31, 2013
  *Backlog of $75.7 billion as at June 30, 2014, compared to $69.7 billion as
    at December31, 2013
  *Subsequent to quarter-end, announcement of a new organizational structure

^(1) See Caution regarding non-GAAP measures at the end of this press release.

Bombardier today reported its financial results for the second quarter ended
June 30, 2014. Revenues totalled $4.9 billion for the quarter, compared to
$4.4 billion for the same period last fiscal year, which represents an
increase of 8.9%, excluding currency impacts.

For the second quarter ended June 30, 2014, earnings before financing expense,
financing income and income taxes (EBIT) totalled $257 million, or 5.3% of
revenues, compared to EBIT before special items of $257 million, or 5.8%, and
EBIT of $288 million, or 6.5%, for the same period last fiscal year.

On an adjusted basis, net income amounted to $192 million, or earnings per
share (EPS) of $0.10, for the second quarter ended June 30, 2014, compared to
$158 million, or $0.09, for the same period the previous year. Net income
totalled $155 million, or EPS of $0.08, compared to $180 million or $0.10 for
the same period the previous year.

For the three-month period ended June 30, 2014, free cash flow usage (cash
flows from operating activities less net additions to property, plant and
equipment (PP&E) and intangible assets) amounted to $424 million, compared to
a usage of $566 million for the same period last year. As at June 30, 2014,
available short-term capital resources of $3.9 billion included cash and cash
equivalents of $2.5 billion, compared to $4.8 billion and $3.4 billion,
respectively as at December 31, 2013. The overall backlog reached $75.7
billion as at June 30, 2014, compared to $69.7 billion as at December 31,
2013.

On July 23, 2014, Bombardier announced a new organizational structure
comprised of four business segments: Bombardier Transportation, Bombardier
Business Aircraft, Bombardier Commercial Aircraft and Bombardier
Aerostructures and Engineering Services, the heads of which will report
directly to Pierre Beaudoin, President and Chief Executive Officer, Bombardier
Inc. The creation of the Aerostructures and Engineering Services business
segment aims at further marketing the company's expertise in this field to the
aerospace industry, thus generating new revenues. A detailed implementation
plan will be developed within the next few months, and the new structure will
be in place January 1, 2015. The restructuring will result in a reduction of
approximately 1,800 indirect positions in Aerospace.

"Overall results for the second quarter were in line with our expectations.
Both groups saw an increase in their revenues and a high level of activity for
their products," said Pierre Beaudoin. "Bombardier Transportation continued to
win a good level of new orders, bringing its total amount to $9.7 billion for
the first six months of the year. And further cost reduction measures are
being implemented as part of its reorganization initiative to increase
profitability over time."

"In Aerospace, the new organizational structure recently announced will make
us more agile and flexible in addressing customer needs, while reducing costs
and increasing our ability to focus on growth areas. Our strong backlog,
combined with this new lighter structure, will allow us to realize the full
potential of our investments in new products," concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues amounted to $2.5 billion for the three-month
period ended June 30, 2014, compared to $2.3 billion for the same period last
fiscal year. EBIT totalled $141 million, or 5.6% of revenues, for the second
quarter ended June 30, 2014, compared to EBIT before special items of $107
million, or 4.7%, and EBIT of $138 million, or 6.1%, for the same period last
fiscal year. Free cash flow usage amounted to $363 million (including net
additions to PP&E and intangible assets of $509 million) for the second
quarter ended June 30, 2014, compared to a usage of $459 million (including
net additions to PP&E and intangible assets of $534 million) for the same
period last fiscal year.

Bombardier Aerospace delivered a total of 62 aircraft during the second
quarter ended June 30, 2014, compared to 57 for the same period last fiscal
year, and received 48 net orders, compared to 82 for the same period last
fiscal year.

On May 29, 2014, an engine-related incident occurred on the first CS100 Flight
Test Vehicle (FTV1) during stationary ground maintenance testing. Bombardier
and Pratt & Whitney have worked on a solution and flight tests are expected to
resume in the coming weeks. The targeted entry-into-service dates of the CS100
and CS300 aircraft programs remain unchanged.

In June, Bombardier Commercial Aircraft signed a firm order with an
undisclosed customer for 16 CRJ900NextGen aircraft, valued at $727 million
based on list price, with options for an additional eight.

Subsequent to quarter-end, at the Farnborough Airshow, Bombardier Aerospace
concluded firm orders, conditional purchase agreements and letters of intent
for a total of 74 aircraft, valued at more than $4.25 billion. This includes
letters of intent and a conditional purchase agreement for a total of 66
CSeries aircraft with five customers, bringing the total CSeries firm orders
and other agreements to 513, with 20 customers in 17 countries, including 203
firm orders.

In April, the maiden flight of the first Learjet 85 Flight Test Vehicle was
successfully completed. Additional flights have since occurred. The flights
are proceeding as expected.

Bombardier Aerospace's backlog reached a level of $38.1 billion as at June 30,
2014, compared to $37.3 billion, as at December 31, 2013.

Bombardier Transportation

Bombardier Transportation's revenues amounted to $2.4 billion for the
three-month period ended June 30, 2014, compared to $2.2 billion for the same
period last year, an increase of 6.3% excluding currency impacts. EBIT
totalled $116 million, or 4.9% of revenues, compared to $150 million, or 6.9%,
for the same quarter the previous year. Free cash flow usage totalled $47
million for the quarter ended June 30, 2014, compared to a usage of $21
million for the same period last fiscal year.

New orders reached $1.7 billion (book-to-bill ratio of 0.7), bringing the
total orders to $9.7 billion for the first six months of the year
(book-to-bill ratio of 2.1). This translates into an order backlog of $37.6
billion as at June 30, 2014, compared to $32.4 billion as at December 31,
2013.

During the second quarter, Bombardier Transportation won several small and
medium orders across various regions and product segments, including a
contract for rolling stock from an undisclosed customer for a value of $338
million. It also signed a framework agreement with Railpool GmbH to provide 65
TRAXX locomotives, with a first call-off of 35 locomotives valued at $184
million. Also, Virgin Trains signed a contract to extend the provision of
maintenance of its Super Voyager fleet operating on the UK's West Coast main
line to March 2019, valued at approximately $175 million.

FINANCIAL HIGHLIGHTS                                                         
(in millions of U.S. dollars, except per share amounts)                      
For the three-month periods ended
June 30                                 2014                     2013 
                      BA      BT   Total      BA      BT   Total 
                                                            
Results of
operations                                                  
Revenues           $ 2,512  $ 2,379  $ 4,891  $ 2,255  $ 2,175  $ 4,430 
Cost of sales       2,156   2,077   4,233   1,922   1,836   3,758 
Gross margin          356     302     658     333     339     672 
SG&A                  171     183     354     189     193     382 
R&D                    47      32      79      45      30      75 
Share of income of
joint ventures and
associates              -     (28 )    (28 )      -     (34 )    (34 )
Other income           (3 )     (1 )     (4 )     (8 )      -      (8 )
EBIT before
special items^(1)     141     116     257     107     150     257 
Special items^(2)       -       -       -     (31 )      -     (31 )
EBIT               $   141  $   116     257  $   138  $   150     288 
Financing expense                    90                    83 
Financing income                    (49 )                  (47 )
EBT                                 216                   252 
Income taxes                         61                    72 
Net income                       $   155                $   180 
EPS (basic and
diluted; in
dollars)                         $  0.08                $  0.10 
Supplemental
information                                                 
EBIT before
special items^(1)  $   141  $   116  $   257  $   107  $   150  $   257 
Amortization           74      29     103      71      31     102 
EBITDA before
special items^(1)  $   215  $   145  $   360  $   178  $   181  $   359 
On an adjusted
basis                                                       
Adjusted net
income^(1)                       $   192                $   158 
Adjusted EPS (in
dollars)^(1)                     $  0.10                $  0.09 
Cash flows from
operating
activities         $   146  $   (31 )        $    75  $    (5 )       
Net additions to
PP&E and intangible
assets                (509 )    (16 )          (534 )    (16 )       
Segmented free
cash flow
usage^(1)          $  (363 ) $   (47 ) $  (410 ) $  (459 ) $   (21 ) $  (480 )
Net income taxes
and net interest
paid                                (14 )                  (86 )
Free cash flow
usage^(1)                        $  (424 )               $  (566 )

BA: Bombardier Aerospace; BT: Bombardier Transportation
(1) Non-GAAP financial measures. Refer to the Non-GAAP financial measures and
    Liquidity and capital resources sections in Overview of the Corporation's
    MD&A for definitions of these metrics and reconciliation to the most
    comparable IFRS measures.
(2) The special item for the three-month period ended June 30, 2013, related
    to a gain following the successful resolution of a litigation in
    connection with Part IV of the Quebec Income Tax Act, the Tax on Capital.
   
   

For the six-month periods ended
June 30                                2014                       2013 
                   BA      BT    Total       BA      BT    Total 
Results of
operations                                                  
Revenues        $ 4,601  $ 4,644  $  9,245  $  4,513  $ 4,256  $  8,769 
Cost of sales    3,958   4,036    7,994    3,873   3,608    7,481 
Gross margin       643     608    1,251      640     648    1,288 
SG&A               328     364      692      347     379      726 
R&D                 87      68      155       87      58      145 
Share of income
of joint
ventures and
associates           -     (50 )     (50 )       -     (78 )     (78 )
Other income       (18 )     (4 )     (22 )      (2 )      -       (2 )
EBIT before
special
items^(1)          246     230      476      208     289      497 
Special
items^(2)           12       -       12      (31 )      -      (31 )
EBIT            $   234  $   230      464  $    239  $   289      528 
Financing
expense                           136                     151 
Financing
income                            (61 )                    (80 )
EBT                               389                     457 
Income taxes                      119                     129 
Net income                    $    270                 $    328 
EPS (basic and
diluted; in
dollars)                      $   0.14                 $   0.18 
Supplemental
information                                                 
EBIT before
special
items^(1)       $   246  $   230  $    476  $    208  $   289  $    497 
Amortization       137      59      196      132      61      193 
EBITDA before
special
items^(1)       $   383  $   289  $    672  $    340  $   350  $    690 
On an adjusted
basis                                                       
Adjusted net
income^(1)                    $    343                 $    314 
Adjusted EPS
(in
dollars)^(1)                  $   0.19                 $   0.17 
Cash flows from
operating
activities      $    85  $  (271 )         $    117  $   (67 )        
Net additions to
PP&E and
intangible assets  (993 )    (32 )          (1,037 )    (27 )        
Segmented free
cash flow
usage^(1)       $  (908 ) $  (303 ) $ (1,211 ) $   (920 ) $   (94 ) $ (1,014 )
Net income
taxes and net
interest paid                    (128 )                   (142 )
Free cash flow
usage^(1)                     $ (1,339 )                $ (1,156 )

BA: Bombardier Aerospace; BT: Bombardier Transportation
^(1) Non-GAAP financial measures. Refer to the Non-GAAP financial measures and
     Liquidity and capital resources sections in Overview of the Corporation's
     MD&A for definitions of these metrics and reconciliation to the most
     comparable IFRS measures.
^(2) The special items for the six-month period ended June 30, 2014 relate to
     a $22-million expense for the previously announced workforce reduction of
     approximately 1,700 positions, located mostly in Canada and the U.S., and
     a $10-million gain following the successful resolution of a litigation in
     connection with Part IV of the Quebec Income Tax Act, the Tax on Capital.
     The special item for the three- and six-month periods ended June 30, 2013
     relates to a gain following the successful resolution of a litigation in
     connection with Part IV of the Quebec Income Tax Act, the Tax on Capital.

SELECTED FINANCIAL INFORMATION
Bombardier Aerospace

Total aircraft deliveries
                    Three-month periods Six-month periods
                         ended June 30     ended June 30
(in units)               2014      2013     2014     2013
Business aircraft          38        45       81       84
Commercial aircraft        23        12       36       25
Amphibious aircraft         1         -        1        1
                          62        57      118      110
                                             

Total aircraft net orders
                                  June 30, 2014                June 30, 2013
                    Gross                    Net  Gross                    Net
(in units)         orders Cancellations  orders orders Cancellations  orders
Three-month periods ended                                         
Business aircraft      41           (11 )     30     65           (18 )     47
Commercial
aircraft               18             -      18     43            (8 )     35
                      59           (11 )     48    108           (26 )     82
Six-month periods ended                          
Business aircraft      96           (20 )     76    101           (27 )     74
Commercial
aircraft               62            (1 )     61     47           (11 )     36
Amphibious
aircraft                2             -       2      -             -       -
                     160           (21 )    139    148           (38 )    110
                                                                

Book-to-bill ratio^(1)                           
                       Three-month periods Six-month periods
                            ended June 30     ended June 30
                           2014      2013     2014     2013
Business aircraft            0.8       1.0      0.9      0.9
Commercial aircraft          0.8       2.9      1.7      1.4
                            0.8       1.4      1.2      1.0

^(1) Defined as net orders received over aircraft deliveries, in units.
    

Order backlog                                                     
                                                                     As at
(in billions of dollars)                       June 30, 2014 December 31, 2013
Aircraft programs                                  $    34.8       $      33.9
Long-term maintenance and spares support
agreements                                              2.9              2.9
Military Aviation Training                              0.4              0.5
                                                  $    38.1       $      37.3

Bombardier Transportation

Revenues by geographic region                                               
                                                Six-month periods ended June
            Three-month periods ended June 30                            30 
                         2014        2013           2014          2013 
Europe^(1)          $ 1,601  67 % $ 1,446  67 %  $  3,122  67 %  $ 2,845  67 %
North America          402  17 %    394  18 %      824  18 %     765  18 %
Asia-Pacific^(1)       244  10 %    196   9 %      424   9 %     408   9 %
Rest of world^(1)
(2)                    132   6 %    139   6 %      274   6 %     238   6 %
                   $ 2,379 100 % $ 2,175 100 %  $  4,644 100 %  $ 4,256 100 %

^(1) The increases in Europe reflect positive currency impacts of $95 million
     and $150 million, respectively, for the three- and six-month periods
     ended June 30, 2014, while the increases in Asia-Pacific reflect negative
     currency impacts of $18 million and $26 million respectively, and the
     variances in the Rest of world region reflect negative currency impacts
     of $10 million and $16 million respectively.
^(2) The Rest of world region includes South America, Central America, Africa,
     the Middle East and the CIS.
    

Order intake and book-to-bill ratio
                                      Three-month periods Six-month periods
                                           ended June 30     ended June 30
Order intake (in billions of dollars)      2014    2013    2014    2013
Rolling stock                           $    0.7  $   2.2  $   5.7  $   3.3
Services                                    0.6     0.7     3.2     1.3
System and signalling                       0.4     0.3     0.8     0.6
                                       $    1.7  $   3.2  $   9.7  $   5.2
Book-to-bill ratio^(1)                      0.7     1.5     2.1     1.2

^(1) Ratio of new orders over revenues.
    

Order backlog                               
                                                As at
(in billions of dollars) June 30, 2014 December 31, 2013
Rolling stock                $    23.6       $      21.1
Services                          9.9              7.4
System and signalling             4.1              3.9
                            $    37.6       $      32.4

DIVIDENDS ON COMMON SHARES

Class A and Class B Shares

A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple
Voting) and of $0.025 Cdn per share on Class B Shares (Subordinate Voting) is
payable on September 30, 2014 to the shareholders of record at the close of
business on September 12, 2014.

Holders of Class B Shares (Subordinate Voting) of record at the close of
business on September 12, 2014 also have a right to a priority quarterly
dividend of $0.000390625 Cdn per share.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares

A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares has
been paid on May 15, June 15 and July 15, 2014.

Series 3 Preferred Shares

A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares
is payable on October 31, 2014 to the shareholders of record at the close of
business on October 17, 2014.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares
is payable on October 31, 2014 to the shareholders of record at the close of
business on October 17, 2014.

About Bombardier

Bombardier is the world's only manufacturer of both planes and trains. Looking
far ahead while delivering today, Bombardier is evolving mobility worldwide by
answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
World and North America indexes. In the fiscal year ended December 31, 2013,
we posted revenues of $18.2 billion. News and information are available at
www.bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ900, CS100, CS300, CSeries, Learjet, Learjet 85, NextGen,
TRAXX, and The Evolution of Mobility are trademarks of Bombardier Inc. or its
subsidiaries.

The Management's Discussion and Analysis and the interim consolidated
financial statements are available at www.ir.bombardier.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but
are not limited to: statements with respect to our objectives, guidance,
targets, goals, priorities, our market and strategies, financial position,
beliefs, prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and trends of an
industry; expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and
services, orders, deliveries, testing, lead times, certifications and project
execution in general; our competitive position; and the expected impact of the
legislative and regulatory environment and legal proceedings on our business
and operations. Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may", "will", "expect", "intend",
"anticipate", "plan", "foresee", "believe", "continue", "maintain" or "align",
the negative of these terms, variations of them or similar terminology. By
their nature, forward-looking statements require us to make assumptions and
are subject to important known and unknown risks and uncertainties, which may
cause our actual results in future periods to differ materially from
forecasted results. While we consider our assumptions to be reasonable and
appropriate based on information currently available, there is a risk that
they may not be accurate. For additional information with respect to the
assumptions underlying the forward-looking statements made in this press
release refer to the respective Guidance and forward-looking statements
sections in Overview, Bombardier Aerospace and Bombardier Transportation
sections in the Management's Discussion and Analysis ("MD&A") in the
Corporation's financial report for the fiscal year ended December 31, 2013.

Certain factors that could cause actual results to differ materially from
those anticipated in the forward-looking statements include risks associated
with general economic conditions, risks associated with our business
environment (such as risks associated with the financial condition of the
airline industry and rail industry, political instability and force majeure),
operational risks (such as risks related to developing new products and
services; fixed-price commitments and production and project execution; doing
business with partners; product performance warranty and casualty claim
losses; regulatory and legal proceedings; the environment; dependence on
certain customers and suppliers; human resources), financing risks (such as
risks related to liquidity and access to capital markets, retirement benefit
plan risk, exposure to credit risk, certain restrictive debt covenants,
financing support provided for the benefit of certain customers and reliance
on government support) and market risks (such as risks related to foreign
currency fluctuations, changing interest rates, decreases in residual values
and increases in commodity prices). For more details, see the Risks and
uncertainties section in Other in the MD&A of the Corporation's financial
report for the fiscal year ended December 31, 2013. Readers are cautioned that
the foregoing list of factors that may affect future growth, results and
performance is not exhaustive and undue reliance should not be placed on
forward-looking statements. The forward-looking statements set forth herein
reflect our expectations as at the date of this press release and are subject
to change after such date. Unless otherwise required by applicable securities
laws, we expressly disclaim any intention, and assume no obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. The forward-looking statements
contained in this press release are expressly qualified by this cautionary
statement.

CAUTION REGARDING NON-GAAP MEASURES

This press release is based on reported earnings in accordance with
International Financial Reporting Standards (IFRS). Reference to generally
accepted accounting principles (GAAP) means IFRS, unless indicated otherwise.
This press release is also based on non-GAAP financial measures including
EBITDA, EBIT and EBITDA before special items, adjusted net income, adjusted
earnings per share and free cash flow. These non-GAAP measures are mainly
derived from the interim consolidated financial statements, but do not have a
standardized meaning prescribed by IFRS; therefore, others using these terms
may calculate them differently. Management believes that providing certain
non-GAAP performance measures, in addition to IFRS measures, provides users of
our financial reports with enhanced understanding of our results and related
trends and increases transparency and clarity into the core results of our
business. Refer to the Non-GAAP financial measures and Liquidity and capital
resources sections in Overview and Analysis of results sections in Aerospace
and Transportation in the Corporation's MD&A for definitions of these metrics
and reconciliations to the most comparable IFRS measures.

Contact

Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514 861 9481

Shirley Chenier
Senior Director, Investor Relations
Bombardier Inc.
+514 861 9481

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Bombardier Inc.
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