19 Mar 02. BOMBARDIER(TSE:BBD.A. – news; TSE:BBD.B. – news): Consolidated revenues for the year rise 36% to $21.6bn Income climbs 17% to $1.7bn, before special items, income taxes and goodwill amortization Net income for the year amounts to $390.9m Backlog reaches $44.1bn Q4 consolidated revenues rise 41% to $7.8bn and income climbs 4% to $503.8m, before special items, income taxes and goodwill amortization Bombardier Inc. reported consolidated revenues of $21.6bn for the year ended Jan. 31, 2002, an increase of 36%, (2001:$15.9bn).
Income before special items, income taxes and goodwill amortization for the year increased 17% to $1.7bn, (2001:$1.4bn). Earnings per share before special items and goodwill amortization rose to $0.81, a 16% increase, (2001: $0.70). After the net effect of the special items and goodwill amortization, net income for the year reached $390.9m, or $0.27 per share, (2001: $975.4m, or $0.70). As previously announced, the special items recorded for the year ended Jan. 31, 2002 totalled $1.1bn. As a result of the Corporation’s decision to withdraw from the retail finance business, a special charge of $662.5m ($405.1mafter tax) was provided for in the third quarter in Bombardier Capital.
In the aerospace segment, considering the overall outlook for turboprops, a special charge of $264.0m ($176.9m after tax) was recorded in the third quarter relating to the write-off of the carrying value of development costs for the Bombardier Q400(a) aircraft. In addition, special charges totalling $69.5m($46.6m after tax) were recorded over the third and fourth quarters for severance and other termination costs for adjustments in aerospace employment levels. The total amount of special charges is in line with the announcement made on Sept. 26, 2001. Consolidated revenues for the fourth quarter ended Jan. 31, 2002 totalled $7.8bn , a 41% increase, (2001: $5.5bn). Income before special items, income taxes and goodwill amortization for the quarter rose to $503.8m, an increase of 4% (2001: $482.7m). Earnings per share before special items and goodwill amortization for the fourth quarter was $0.24, (2001: $0.25).
After the effect of the special items and goodwill amortization, net income for the quarter amounted to $229.6 million, or $0.16 per share (2001: $348.0m or $0.25). the Special items recorded during the fourth quarter amounted to $111.6m. Bombardier’s order backlog at Jan. 31, 2002 totalled $44.1bn, a 39% Increase, (2001: $31.7bn). In aerospace, the backlog reached $23.7bn at Jan. 31, 2002, (2001: $23.0bn).
Commenting on these results, President and Chief Executive Officer, Robert E. Brown noted that: “We had a strong fourth quarter, which allowed us to meet our targeted year-end results as outlined on Nov. 28, 2001.” “For the fiscal year,” added Mr. Brown, “in spite of the slowing economy and the aftermath of Sept. 11 events, Bombardier has increased its revenues by 36% and its income before special items, income taxes and goodwill amortization by 17%. These results show that the actions we took to protect Bombardier’s interests were the right ones. We moved rapidly to make a number of difficult but necessary decisions: modifying the production rate of most of our aircraft programs, adjusting our employment levels and significantly reducing Bombardier Capital’s risk profile by withdrawing from retail loan portfolios.”
“Our performance demonstrates once again how the diversity of our markets and of our products and services, along with our operational efficiency, constitute a sound approach to alleviate the impact of negative economic cycles,” added Mr. Brown.
“With our backlog of orders in aerospace and transportation, our performance in recreational products, our focused strategy in financial services and the consolidation of our leadership in all our activities, we are facing the future with confidence and determination.”
“Given our understanding of the current econom