Bombardier Transportation: Earnings slip, orders strong
Written by Douglas John BowenBombardier Transportation's revenue for the first quarter of 2012 added up to US$2 billion, compared with US$2.5 billion in first quarter 2011. EBIT (earnings before interest and taxes) totaled $124 million, or 6.2% of revenue, compared with $171 million, or 6.9%, for the corresponding period last year.
Bombardier said completion of orders, mainly in Asia, was responsible for the decline, and that new orders remained strong in most regions.
In a corporate earnings statement released Thursday, Bombardier described activities in the Transportation unit:
“Bombardier Transportation reported new orders worth $1.2 billion for the first quarter, representing a book-to-bill ratio of 0.6, compared to $1.2 billion and a book-to-bill ratio of 0.5, for the corresponding period last fiscal year. The order backlog stood at $31.9 billion as at March 31, 2012, the same level as at December 31, 2011.
“During the first quarter of 2012, Bombardier Transportation received an order from Deutsche Bahn AG, of Germany, for 16 four-car TWINDEXX double-deck trains, valued at $208 million. This order is part of a framework agreement signed in 2008, and is an example of the success of the group’s strategy to win key framework contracts in Europe.
“In April 2012, to continue on its long-term investment in emerging markets, the group inaugurated a state-of-the-art monorail vehicle manufacturing facility in Hortolandia, Brazil. This new production site is the group’s global production center for monorails, serving the fast-growing market in Brazil as well as supporting export opportunities in Latin America and around the world.”
Bombardier, which also has an Aerospace unit, reported corporate quarterly revenue of US$3.5 billion, compared with US$4.7 billion last fiscal year; EBIT of $215 million, or 6.1% of revenue, compared with $312 million, or 6.7%, last fiscal year; and net income of $190 million, or diluted earnings per share of 10 cents, compared with $220 million, or diluted earnings per share of 12 cents.
