Bombardier reported its first quarter 2017 results, demonstrating continued momentum executing its turnaround plan. Highlighting the company’s progress was strong organic growth at Transportation, EBIT margin(1) expansion at both Transportation and Business Aircraft, and significantly improved year-over-year cash performance.
Bombardier reported revenues of $3.6 billion and EBIT before special items was $128 million. EBIT margins before special items grew to a robust 8.0% at Transportation, 7.6% at Business Aircraft and 7.5% at Aerostructures, while Commercial Aircraft recorded an EBIT loss in line with the prior year. Free cash flow usage improved by $157 million to $593 million for the quarter.
“We continue to gain momentum as we execute our transformation plan and begin to unleash the full value of the Bombardier portfolio,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “Our continued margin expansion and improving cash performance demonstrate both the early benefits of our actions and the long-term potential of our company.”
Bombardier also announced that Pierre Beaudoin intends to step down as Executive Chairman of the Board effective June 30, 2017. Mr. Beaudoin will continue to serve as Non-Executive Chairman.
“This change reflects the very successful transition of Bombardier’s executive leadership to Alain over the past two years,” said Beaudoin. “As Chairman I look forward to working with the Board of Directors to provide continuing support to Alain and the leadership team. The Company is firmly on the right path, with a very strong leadership team now in place to execute its turnaround plan and return Bombardier to long-term, sustainable growth.”