Monday, April 05, 2010

Bombardier train orders slip, but backlog remains high

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Bombardier Transportation won new orders worth $1.8 billion in the fiscal fourth quarter ended Jan. 31, 2010, compared to $2.6 billion for the same period last year, a decrease mainly due to lower rolling stock orders in Europe and Asia. During the year ended Jan. 31, 2010, new orders reached $9.6 billion, compared to $9.8 billion for the prior year.

The backlog of undelivered orders totaled $27.1 billion on Jan. 31, 2010, compared to $24.7 billion on Jan. 31, 2009.

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Bombardier Transportation’s revenue amounted to $2.7 billion for the fourth quarter, a slight increase attributed to positive currency impact and “increased activities in intercity, high speed and very high speed trains mainly in China, and increased activities in propulsion and controls in China.”

For the year ended Jan. 31, 2010, revenue totaled $10 billion, compared to $9.8 billion for the previous year, reflecting “increased activity in commuter and regional trains and in metro, mainly in  Germany, India, Denmark, France, Sweden, and the U.K.,; in intercity, high speed and very high speed trains mainly in China; in locomotives mainly in Germany and Spain; and in propulsion and controls in China.”

Bombardier , Inc., which also has an Aerospace Division, reported consolidated revenue of $19.4 billion for the new fiscalyear compared to $19.7 billion last year; and net income of $707 million, down from $1 billion last year.

“Against a challenging economic backdrop, we delivered good financial results. We took the downturn as an opportunity to fine-tune the way we operate in order to execute better and cut costs intelligently,” said Bombardier Inc. President and Chief Executive Officer Pierre Beaudoin.

“The rail market remained resilient,” said Beaudoin. “Bombardier Transportation increased both revenues and profitability.The group posted a 6.2% EBIT margin exceeding the 6% target set four years ago.The level of activity in traditional markets remained robust and we won breakthrough contracts such as the order for 80 ZEFIRO very high speed trains in China and, more recently, an $11 billion framework agreement with the SNCF [French National Railways] for regional trains.”