Alstom on track to complete first train for Hanoi Metro Line 3
26 October 2019 – Alstom, which is manufacturing 10 trains for Hanoi Metro Line 3, today hosted Deputy General Secretary of the Communist Party of Vietnam, Tran Quoc Vuong, and his delegation to a visit of its train assembly plant in Valenciennes (France). The plant is working to complete the first trainset by the end of October, marking an important milestone in Alstom’s first integrated metro system contract in Vietnam, signed with MRB (Hanoi Metropolitan Railway Management Board) in 2017.
As part of the visit, Alstom’s Managing Director for China and East Asia, Olivier Loison, and Chairman of the Hanoi People’s Committee and Mayor of Hanoi, Nguyen Duc Chung, signed a memorandum of understanding regarding the existing contract of Alstom in Hanoi. The agreement aims to foster further collaborative opportunities between both parties for new systems within the Vietnamese capital.
“We are honoured to have Deputy General Secretary Vuong and his team witness the final assembly of our first train for Hanoi Metro Line 3 here in Valenciennes. This will be an important milestone for the bilateral project as we bring this train to fruition. We look forward to remaining a close and long-term partner of Vietnam, addressing its mobility needs and supporting it in its upcoming transport projects,” said Olivier Loison.
In 2017, Alstom, as leader of a consortium including Colas Rail and Thales, was awarded a contract to supply an integrated metro system for Hanoi Metro Line 3. Alstom’s share covered the supply and integration of the metro system, including the 10 trains and the Urbalis 400 signalling system[1], as well as the delivery of power supply and depot equipment together with a partner. The new line is 12.5 kilometres long with 12 stations. It is expected to carry over 23,900 passengers per hour and per direction at peak capacity.
Alstom puts the passenger at the heart of its train design process. The four-car Metropolis trains for Hanoi Metro Line 3 will feature wide doors to facilitate passenger flow, dedicated space for passengers with reduced mobility, as well as ergonomic and easy-to-grab bars. The trains will be fully electric, with lightweight aluminium car bodies. The train’s exterior and interior colour scheme takes local Vietnamese inspiration and includes motifs such as dragon fruit and the rice paddy field – a design that was well-received by the people at a public consultation held in September 2018.
When completed, the first train will undergo a series of static and dynamic tests at the Valenciennes Railway Testing Centre during the month of November. Tests will be carried out on the trains’ automatic control system and on-board audio-visual equipment, this time on Hanoi Metro Line 3 in the second half of 2020. Entry into service is expected in the first half of 2021.
Alstom has built up close to 30 years of presence in Vietnam. It has provided signalling and telecommunication system modernisation services for the Hanoi-Vinh regional line phase one and phase two and has offered signalling and telecommunication systems for Ninh Binh station.
[1] Alstom’s Communication Based Train Control (CBTC)-solution, which controls the movement of the trains and enables trains to run at higher frequencies and speeds in total safety
(from left to right): Sergio Boya, Alstom Spain, Miguel Angel Martin, Director, BCN trains Manufacturing Site, Maria Rosa Alarcón Montañés, Chair TMB, Gerardo Lertxundi Albéniz, Chief Executive Officer TMB
A contract worth over €260 million in Spain
7 October 2019 – Alstom has signed a contract with Barcelona Metro operator TMB (Transports Metropolitans de Barcelona) to supply 42 Metropolis trains to replace those currently running on lines 1 and 3 of the network. The contract[1], valued at over €260 million, includes the design, manufacturing and commissioning of the trains. The five-car trains will be manufactured in Alstom’s Barcelona site and delivered to TMB within two and a half years.
“Alstom is honoured by this sign of confidence from TMB. The expertise and innovation capabilities of our teams are fully mobilised to support the plan to modernise Barcelona Metro for the benefit of passengers. Carrying over 400 million passengers per year, the Barcelona network is one of the most efficient and modern in Europe. With our trains, we aim to help TMB in the development of efficient and sustainable mobility that responds to the current and future needs of all passengers,” said Gian Luca Erbacci, Senior Vice President of Alstom in Europe.
“With the withdrawal of the oldest fleet, we accelerate a process of renovation that will increase service reliability, sustainability and passenger comfort in two of our most frequented Metro lines, in a context of maximum demand for the collective transport of Barcelona, upon the entry into force of the low-emission zone. This is the most important rolling stock acquisition in the history of TMB,” said Rosa Alarcón, President of TMB, during the signature of the contract.
According to the specifications, the new Metropolis trains will meet strict sustainability criteria; light structure, low energy consumption, high levels of recoverability and recyclability, technical reliability and ease of maintenance. The trains will also be equipped with remote sensors for optimal maintenance.
Alstom also puts the passenger at the heart of its design process. The trains for Barcelona will be built with the comfort of passengers in mind, offering accessibility, wide doors and spaces to facilitate passenger flow, acoustic comfort, vibration mitigation and passenger information in real time. Both external an internal design features will remain faithful to the TMB brand but will also add new visual elements that reflect the identity of Barcelona, such as graphics on the doors that represent Barcelona’s urban landscape.
The new trains for Barcelona will benefit from the experience and reliability of Alstom’s Metropolis range, currently in circulation on lines 9 and 10 of the Barcelona Metro, incorporating innovative technological solutions and meeting TMB’s requirements in terms of reliability, availability, safety and comfort. Alstom has more than 65 years’ experience in the production of metros, having sold over 17,000 metro cars operating in 55 cities worldwide and carrying 30 million passengers every day.
NEW STATE-OF-THE-ART AIRCRAFT AND 3 NEW ROUTES LAND IN BUDAPEST
WizzAir,the largest airline in Central and Eastern Europe and Europe’s greenest* airline has today announced the arrival another state-of-the-art Airbus A321neo aircraft at its base in Budapest in June 2020 and the launch of three new routes to European cities from the Hungarian capital. Tickets for the new routes are already on sale and can be booked from only HUF 6,490, and 7,990**, respectively, on wizzair.com and the airline’s mobile app.
New daily service to Brussels, four destinations in Ukraine
Brussels Charleroi has been a part of Wizz Air’s network since 2004. From next summer, the airline will also operate a daily service to Brussels Airport, the Belgian’s capital main airport – the airline’s 151 destination –, creating a more direct link with the centre of the European Union for business travellers and diplomats. With its picturesque main square and delightful brasseries, Brussels is an attractive destination for tourists as well.
Hungary’s hometown airline is also expanding towards the East with two flights per week to Lviv, Western Ukraine’s central city, and Kharkiv, the second largest city in the country. As Kyiv has been accessible from Budapest since 2011 and flights to Odessa will launch this October, today’s announcement means that Budapest will be linked by direct flights to all four Wizz Air destinations within Ukraine.
Lviv is one of Ukraine’s most scenic historic towns, with its downtown featured in the UNESCO World Heritage List. The town was one of the multicultural centres of the Austro-Hungarian Monarchy under the name Lemberg and has preserved its Central European atmosphere to this day. Today, Lviv is one of the centres of Ukrainian culture with lots of theatres, museums and festivals awaiting visitors. Kharkiv is an interesting destination for admirers of Ukrainian gastronomy and Soviet-style architecture with its magnificent metro stations and the country’s first skyscraper.
16 aircraft in Hungary
With the arrival of the newest A321neo, Wizz Air’s Hungarian fleet expands to 14 aircraft allocated in Budapest, with a further 2 aircraft based in Debrecen. This means the airline’s operations support over 4,000*** indirect local jobs in the country. Apart from the new destinations, Wizz Air will increase its frequency on four of its existing routes to Eindhoven, St. Petersburg, Tel-Aviv and Edinburgh (to be launched this December). With this expansion of capacity, Wizz Air will increase its Hungarian seat capacity to 6.7 million passengers in 2020.
Wizz Air is the “greenest” airline
The new routes will be served by the state-of-the-art Airbus A321neo aircraft of the Budapest base. The airline operates one of the youngest fleets in Europe, with the average age of 4.7 years. As a result, Wizz Air was the airline with the smallest environmental footprint in Europeonce again in August 2019, with only 57.7 grams CO emissions per passenger per kilometre. The company currently has a total of 271 Airbus A321neo, Airbus A321neo and Airbus A321XLR aircraft on order. With the new aircraft, the airline will continue to drive efficiency parallel to further decreasing its environmental footprint by 1/3 for over the next decade. The Airbus A321neo, six of which are already in operation at WIZZ’s Budapest base, incorporates the latest technologies in aviation. It offers a 50 percent reduction in noise footprint, a 20 percent reduction in fuel consumption, while also reducing nitrogen oxide emissions by up to 50 percent.
Stephen Jones, Wizz Air Hungary’s managing director said: “Hungary’s hometown airline, Wizz Air remains strongly committed to its country of origin. We are continuously expanding and modernizing our fleet and network in Budapest to provide affordable and high quality travel opportunities to more and more Hungarian passengers. Adding a new, state-of-the-art aircraft to our Budapest fleet and launching three new routes underpins our dedication to Budapest and Hungary and creates more local jobs with the airline and in associated industries, as well as stimulates the local tourism and hospitality industries. The WIZZ team looks forward to welcoming customers old and new on-board our ultra-efficient fleet of Airbus aircraft very soon. And for those looking to turn their passion for travel into a career, we’d be delighted to see you at one of our Wizz Air cabin crew recruitment days, where you can find out more about joining the WIZZ team.”
Once completed in 2023, the $2 billion transit hub will be the largest facility of its kind in the world with a vehicle leaving every two seconds at peak operations
Board of Airport Commissioners (BOAC) Commissioner Bea Hsu, BOAC Commissioner Gabriel Eshaghian, BOAC Vice President Valeria Velasco, BOAC President Sean Burton, Los Angeles World Airports (LAWA) Chief Executive Officer Deborah Flint, Councilmember Joe Buscaino, Mayor Eric Garcetti, Councilmember Mike Bonin, Deputy Mayor Billy Chun, Director of Economic Infrastructure -Office of Mayor Garcetti David Reich, LAWA Chief Operating Officer Justin Erbacci, LAWA Chief Development Officer Bernardo Gogna and LAX ConRAC Partners Project Executive Karl Schaefer.
(Los Angeles, CA) Mayor Eric Garcetti broke ground today on the Consolidated Rent-A-Car (ConRAC) facility at Los Angeles International Airport (LAX), which will centralize rental car operations into one convenient location and offer a direct connection to the upcoming Automated People Mover (APM) train. The Mayor was joined at the ceremony by Councilmembers Mike Bonin and Joe Buscaino, Los Angeles County Supervisor Mark Ridley-Thomas, Board of Airport Commissioners (BOAC) President Sean Burton, and Los Angeles World Airports (LAWA) CEO Deborah Flint, as well as community and labor leaders.
“We are building the world-class airport travelers need and deserve — and the Consolidated Rent-A-Car facility groundbreaking demonstrates how we’re keeping this promise,” said Mayor Garcetti. “Our city is doing so much more than building a parking structure — we are making an investment that will improve the traveling experience, reduce congestion in surrounding neighborhoods, and create middle-class careers for years to come.”
Since taking office, Mayor Garcetti has led a more than $14 billion transformation of LAX that began in 2009. Mayor Garcetti’s historic infrastructure investments have strengthened working families and the middle class. Under his leadership, unemployment has been cut in half while close to 200,000 new jobs have been created. Construction of the ConRAC is expected to create more than 1,000 jobs.
The 5.3 million square foot ConRAC facility will feature 18,000 parking stalls with 6,600 ready/return spaces, 10,000 idle vehicle storage spaces, and 1,100 rental car employee spaces as well as visitor parking. A Quick-Turn Around facility will also be on-site, allowing for fueling, washing, and light maintenance of rental car vehicles.
Mayor Eric Garcetti provides remarks during the groundbreaking ceremony.
Reducing congestion at LAX — as well as in surrounding communities — is at the heart of the ConRAC project. The consolidated facility will completely remove rental car shuttle traffic from the Central Terminal Area (CTA), which equates to 3,200 shuttle trips per day. The removal of the shuttles will improve traffic on the roadways and free up critical curbside boarding space in the CTA.
“This is a big step toward LAX becoming a world-class airport for travelers and a first-class neighbor to Westchester and Playa del Rey,” said Councilmember Mike Bonin. “Especially once it is connected to the new Automated People Mover, this new Consolidated Rent-A-Car Facility will reduce the number of shuttles and vans navigating the Central Terminal Area and nearby neighborhoods, improving both local traffic and air quality. That is a big win and exciting progress to celebrate.”
“This has been a momentous year for LAX,” said Councilmember Joe Buscaino. “LAX continues to move full steam ahead with its $14 billion investment to create a fully transformed airport of the future. The ConRAC is just one of the many groundbreakings held this year which highlight the efforts LAX is making to improve passenger experience which increases tourism and improves our local economy.”
As the second largest rental car market among domestic airports, the ConRAC will improve and streamline the car rental process at LAX. The facility will be built with an eye to the future and designed to accommodate new and emerging vehicle types such as autonomous vehicles. Additionally, movable concrete barriers will allow for the quick reallocation of space as rental car companies’ market shares shift.
The ConRAC is an important component of the Landside Access Modernization Program (LAMP), which also includes an Automated People Mover train that will connect travelers directly to airport terminals and create new and convenient locations for passenger pick-up and drop-off outside the Central Terminal Area. Once completed in 2023, the APM will connect with L.A. Metro’s light rail system.
Rendering of the ConRAC Facility at night.
“The ConRAC Facility will provide a rental car experience worthy of a world-class airport,” said BOAC President Sean Burton. “This project doesn’t just benefit those renting cars — it benefits the local economy and community through the creation of 1,000 jobs and by relieving vehicle congestion on the roads in and around LAX.”
“We are future-proofing everything we build at LAX,” said Deborah Flint, CEO, LAWA. “Every project under construction or on the drawing board will meet our needs now and be capable of adapting to new technology and demands. The ConRAC Facility is a prime example of how to future-proof so we can protect our investments.”
On October 26, 2018, the Los Angeles City Council approved an approximately $2 billion public-private partnership between LAWA and LAX ConRAC Partners (LAXCP), with LAXCP designing, building, financing, operating, and maintaining the facility for a 28-year period. LAXCP has committed to 30% local hiring, which exceeds local hiring requirements, and together with LAWA is developing opportunities for local small businesses. LAXCP has also agreed to sponsor 100 new, local apprentices and feature all-union labor on the ConRAC facility.
“Collectively, the LAXCP team has extensive experience designing, building, and operating nearly 30 ConRACs domestically and internationally,” said Karl Schaefer, LAXCP Project Executive. “We are proud to use our shared know how to help LAWA create a top tier experience for the traveling public at LAX while we honor our commitment to provide local hire economic opportunities and environmental sustainability.”
Mayor Garcetti has made sustainability a priority of his administration. The ConRAC facility is designed to reflect Los Angeles’ standing as one of the world’s leading sustainable cities and will include native drought-tolerant landscaping, reclaimed water usage, more than 200 Level 2 electric vehicle chargers, and a solar farm generating over 8,400 megawatt hours annually.
– Gualter Helicopteros appointed as Kopter Group distributor for Brazil. – Kopter’s SH09 is exhibited at LABACE in Sao Paolo from August 13th to 15th.
Kopter Group (Kopter) is starting the active promotion in Brazil of its SH09, the next generation single engine helicopter, with the appointment of Gualter Helicopteros as its representative & distributor.
The partnership between the two companies was signed on the first day of the LABACE 2019 exhibition, which is taking place in Sao Paolo from August 13th to 15th. Christian Gras, Kopter Executive Vice President Customers declared on this occasion: “With more than 30-year experience in the helicopter business and having introduced several helicopter models in the Brazilian market, Gualter Helicopteros is the right partner to ensure the success of the SH09 in Brazil. The team has an impressive track record, having sold over 600 new and used helicopters on the Brazilian and South American markets”.
Brazil, which has a solid aeronautical tradition and is the world third largest aircraft industry, counts today more than 1,800 helicopters in operations, including a large part of single engine models. It represents a unique opportunity for Kopter’s SH09 as the helicopter perfectly meets the market expectations for a modern, performing and cost-effective platform to replace an aging fleet.
For the first time, Kopter is showcasing the full-scale mock-up of its SH09 in Brazil at the exhibition. The SH09 is fitted with a seven-seat transport configuration (five passengers and two pilots) developed and installed by Metro Aviation. The mock-up also features the Garmin G3000H, a state of the art avionics suite for which Kopter is the launching customer. The G3000H will be integrated in the SH09 since the very first delivery. It will significantly reduce pilot workload, increase situational awareness and boost the aircraft’s operational safety margins.
The multi-role SH09 helicopter is a highly adaptive and versatile platform to transport passengers with the highest levels of safety, comfort and visibility. Its large cabin offers the volume and flexibility typically seen on light-twin helicopters only. It allows multiple interior layouts that provide ample legroom as well as flexibility for added luggage loaded through the rear clamshell doors. The helicopter’s low vibration levels with its five-blade main rotor, as well as the silent noise signature of the shrouded tail rotor, create the ultimate flying experience.
The SH09 is generating a strong response on the worldwide market, having today a total number of orders amounting to 70 units, to which another 100 LOIs are to be added. Kopter looks forward to welcoming Brazilian operators to its list of customers.
05/08/2019 – Alstom India continues its noteworthy innings in India by rolling out the 100th ‘Make-in-India’ metro trainset today from its state-of-the-art rolling stock manufacturing facility in Sricity, Andhra Pradesh. The delivery of the centurion trainset to Kochi Metro Rail Corporation Limited (KMRCL) also marks completion of the Kochi Metro order for 25 trainsets by Alstom. Kochi operates a 100% ‘Make in India’ metro fleet entirely custom-built at the flagship manufacturing facility at Sricity.
The facility was set up as Alstom’s first global manufacturing centre for rolling stock in the Asia-Pacific region. This plant commenced operations in November 2013 and delivered its first metro trainset to Chennai Metro Rail Corporation (CMRL) in February 2014. The facility currently employs more than 600 employees and has a production capacity of 240 cars per year. The factory is currently scaling up to double production capacity and also introducing latest industrial technologies.
Till date, Alstom’s Sricity facility has made on-time deliveries of more than 420 metro cars for its Indian and international customers. This includes delivering completely indigenous trainsets to metro rail corporations of Chennai, Lucknow, Kochi and Sydney (its first international order).
Speaking on this occasion Alain Spohr, Managing Director for India and South Asia, said “We have hit a century by delivering the 100th trainset. This milestone signifies many things, but most importantly, it is a vote of confidence of our customers in our capabilities to deliver world class, custom-made solutions. This achievement has been possible by our belief in our Indian talent that includes more than 4200 team members working across various locations in India. We are confident to reach greater heights with our commitment to ‘Make in India’ and aligning our business goals with the country’s vision.”
In just six years since its commencement, Sricity facility has cemented its position as a manufacturing hub for Alstom’s domestic and international clients. The supply chain is close to being 75% domestic to ensure localised manufacturing. Locally, it is also a preferred workplace due to its regular employee development and inclusive programmes with more than 10% of the staff strength being women in various roles as supervisors, planners, engineers etc.
Before end of this year, the facility will commence production for 248 metro cars (31 train sets of 8 cars each) for Mumbai Metro Line 3, 212 metro cars (106 train sets of 2 cars each) for Montreal Metro (Réseau express métropolitain) and 10 more train sets for Chennai Metro, which is already under execution.
The Boeing Co. is looking at south metro Atlanta for a warehouse and distribution center that could approach 1 million square feet — the latest mega project for the region’s booming logistics sector. The aerospace giant (NYSE: BA) is working with third-party logistics provider XPO Logistics Inc. (NYSE: XPO), which has been touring south metro industrial properties this year and may be focused on Clayton and Henry counties. Industrial real estate developers with projects along the Interstate 75 corridor south of Atlanta have competed for the Boeing facility, which could range from 800,000 square feet initially to eventually more than 1 million square feet. Developers have seen a request for proposals for the project, according to real estate sources familiar with the process.
28 June 2019 – Alstom, in consortium with Bombardier Transportation, will supply 32 further DT5 metro trains to Hamburger Hochbahn AG (Hochbahn) for a total amount of 186 million euros. Alstom’s share of the contract amounts to over 100 million euros. As part of this contract, Alstom will supply the mechanical part, the bogies and the mechanical braking system, while Bombardier will supply the electrical equipment, the driving system, the passenger information system and the vehicle control system. The trains will be assembled at Alstom’s site in Salzgitter, Lower Saxony. The new trains are to be put into service from January 2021 onwards.
“For many years now, our vehicles have been shaping mobility in Hamburg. This order confirms that customers and passengers are satisfied with our vehicles and will continue to rely on the DT5 trains in the future. With this order we will have delivered a total of 163 vehicles to Hamburg. This is a proof of our long-standing, trusting and sustainable cooperation with Hochbahn”, says Dr. Jörg Nikutta, Managing Director for Alstom in Germany and Austria.
The DT5 metro fleet has been in operation in Hamburg since autumn 2012. The Hochbahn has now ordered a total of 163 metro trains of this generation in order to cope with the increasing number of passengers in the city. In the past, Alstom had already delivered the DT2, DT3 and DT4 fleets – a total of 462 trains – to the Hamburg subway system.
Hamburg is the second largest city in Germany and the eighth largest city in the European Union. In order to meet the needs of such a large urban population, the DT5 was designed as a modern, spacious subway with wide corridors, a continuous interior and multi-purpose areas adapted to new passenger needs. Each of the 40 meter long three-car trains has 96 seats, 240 standing spaces and two additional wheelchair spaces. The DT5 also offers high passenger comfort, such as air conditioning, passenger information and monitoring systems as well as automatic door closing.
The DT5 subways are environmentally friendly. Their lightweight stainless steel car bodies and regenerative braking system contribute to improving energy efficiency. The vehicles are very quiet, which makes the Hamburg subway one of the quietest in the world.
As part of the Hamburg Senate’s bidding offensive, Hochbahn is expanding its range of services by an average of around five percent per year over the next three years. The new services include significantly tighter metro intervals and a massive expansion of the bus service with new express and area buses. The latest subway generation (DT5) is now to be increased by 32 vehicles and up to 163 vehicles at a later stage.
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
