North Carolina boatbuilder will exclusively offer Garmin electronics as standard fit on all offshore sportfishing center consoles in 2020
Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ:GRMN), today announced that Regulator Marine has selected Garmin to be its premier electronics supplier to outfit its full line of offshore sportfishing center console boats beginning model year 2020. Garmin electronics will be standard equipment on all Regulator boats ranging from 23 to 41 feet, including the new Regulator 26XO center console crossover, the company announced at its annual dealer meeting, July 23-25.
“It’s truly an honor to know that every new Regulator boat leaving the factory will include Garmin electronics,” said Dan Bartel, Garmin vice president of global consumer sales. “Garmin and Regulator share a passion for designing and engineering products without compromise, and we’re confident that having our award-winning electronics onboard will meet and exceed the needs of the Regulator customer.”
“We are honored to offer our customers what we believe are the finest electronics available today. Every new 2020 model year Regulator will come standard with a Garmin electronics package. From quality to innovation, our customers want it all and we know from our years of experience working together, that Garmin is the perfect fit,” said Joan Maxwell, Regulator Marine president and co-founder.
Regulator will be factory-installing the award-winning GPSMAP® 8600 chartplotter series, offering display sizes ranging from 12 to 17 inches, with models 28-feet and over offering dual 16- or 17-inch displays. Built for mariners who demand high performance, ease-of-use and feature integration, the GPSMAP 8600 series offers premium features like built-in sonar, preloaded BlueChart® g3 cartography with Navionics data, IPS touchscreen displays, full network capabilities and more. Each boat will also come standard with a Garmin VHF marine radio. Other electronics selected by Regulator include the GMR™ xHD2 open array radar series and the award-winning Reactor™ 40 Hydraulic Autopilot with SmartPump, Garmin’s most responsive autopilot system with AHRS technology. Several fishing and convenience upgrade packages are also available to ensure customers can choose additional electronics to fit their needs.
Garmin is the world’s leading marine electronics manufacturer1 and was recently named Manufacturer of the Year for the third consecutive year by the NMEA, an honor given to the most recognized marine electronics company for support of products in the field. Garmin’s portfolio includes some of the industry’s most sophisticated chartplotters and touchscreen multifunction displays, sonar technology, high-definition radar, autopilots, high-resolution mapping, sailing instrumentation, audio, entertainment and other products and services that are known for innovation, reliability, and ease-of-use. Other Garmin marine brands include FUSION® Entertainment, Navionics—a premier supplier of navigation charts, and EmpirBus™. To learn more, visit www.garmin.com/marine.
About Garmin International Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, GPSMAP, BlueChart and FUSION are registered trademarks and GMR and Reactor are trademarks of Garmin Ltd. or its subsidiaries.
All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.
Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 29, 2018, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at:
MHI now positioned to transform and lead the underserved regional jet business, with bolstered customer support services
Key step in MHI’s strategy of expanding its aircraft business globally, with a mid-term focus on North America
Completes Bombardier’s aerospace transformation and refocus on business aviation
Mitsubishi Heavy Industries, Ltd (MHI) (TOKYO:7011) and Bombardier Inc (TSX: BBD.B) announced today they have entered into a definitive agreement, whereby MHI will acquire Bombardier’s regional jet program for a cash consideration of $550 million USD, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million USD. Under the agreement, Bombardier’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million USD, will be transferred to MHI.
Pursuant to the agreement, MHI will acquire the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.
This acquisition is complementary to MHI’s existing commercial aircraft business, in particular the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family. The maintenance and engineering capabilities of the CRJ program will further enhance critical customer support functions, a strategic business area for MHI in the pursuit of future growth.
Seiji Izumisawa, President & CEO of Mitsubishi Heavy Industries Ltd., commented: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience. This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”
Izumisawa concluded, “The CRJ program has been supported by tremendously talented individuals. In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”
“We are very pleased to announce this agreement, which represents the completion of Bombardier’s aerospace transformation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are confident that MHI’s acquisition of the program is the best solution for airline customers, employees and shareholders. We are committed to ensuring a smooth and orderly transition.”
Bellemare continued: “With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future. Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”
The CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft.
Bombardier will also retain certain liabilities representing a
portion of the credit and residual value guarantees totaling
approximately $400 million USD. This amount is fixed and not subject to
future changes in aircraft value, and payable by Bombardier over the
next four years.
The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
The agreement contemplates a reverse break fee payable by MHI under certain circumstances.
About MHI
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 group employees and annual consolidated revenues of around US$38 billion. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems.
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. 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 US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Bombardier and CRJ are trademarks of Bombardier Inc. or its subsidiaries
Bombardier has supplied and maintained 78 B-series Electric Multiple Units over the last 15 years for Western Australia’s Public Transport Authority (PTA) in a joint venture with Downer EDI
Mobility solution provider Bombardier Transportation announced today that its Australian joint venture with Downer EDI, known as EDI Rail Bombardier Transportation Pty Ltd, is celebrating the final delivery of the B-Series Electric Multiple Unit trains for Western Australia’s Public Transport Authority (PTA). This occasion, which relates to the contract signed in 2016 for 30 additional railcars, was commemorated with an acceptance ceremony for the final train at the Nowergup Rail Depot which was attended by Rita Saffioti, Minister of Transport, Planning and Lands, Western Australia and Elwyn Gearon, General Manager, Transperth Train Operations.
Wendy McMillan, President, South East Asia and Australia region said, “We are very proud to complete the delivery of the B-Series EMU train fleet to the full satisfaction of PTA and providing a comfortable and reliable transport solution for over 60 million commuters every year.” She added, “Bombardier and PTA have worked together for over 30 years and we will continue as long-term partners on local initiatives including development of skilled and sustainable jobs, building a strategic supplier base, enhancing engineering capabilities and offering new technologies and expertise to the important Western Australia mobility ecosystem.”
The 15-year journey for Perth’s B-series train sets included the design, assembly and maintenance by the Bombardier Joint Venture (JV) in Australia. The trains have been manufactured at Downer’s facility in Maryborough, Queensland, with electrical pre-assembly work undertaken by Bombardier at its Australian manufacturing facility in Dandenong, Victoria. With an initial order of 31 three car trainsets, the first train entered service in 2004 and the final delivery will now see a total of 78 EMU trains in service. The Bombardier JV will also continue to provide Fleet Maintenance services to PTA for Transperth’s A- and B- series train fleets until 2026 and employ over 130 people across three sites including Nowergup, which manages the maintenance of the entire B-Series fleet.
The B- series EMU platform has been locally designed by Bombardier in Australia. This latest delivery adds to the more than 1,200-strong EMU vehicle fleet of various designs already operating at high reliability and availability delivered across Queensland, Victoria, South Australia and Western Australia by Bombardier over the past 40 years.
Bombardier has been investing in Australia for more than 70 years. As a trusted rail industry partner with over 1,000 employees, Bombardier designs, engineers, manufactures and maintains rolling stock across Australia, along with providing signalling, rail equipment, asset management and through-life support to customers and operators.
About Bombardier Transportation
Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 40,650 people and its products and services operate in over 60 countries.
Paris, France, June 18th, 2019: Viking Air Limited of Victoria, British Columbia, Canada, and Air Antilles, of Guadeloupe, French West Indies, have signed an agreement for the purchase of two Viking Twin Otter Series 400 aircraft, making Air Antilles the first commercial operator of the Series 400 in the Caribbean. Also forming part of the purchase agreement, Air Antilles will become the first Series 400 Twin Otter operator to receive European Union Aviation Safety Agency (EASA) certification for steep approach operations.
The two Viking-built Series 400 Twin Otters are scheduled for delivery to Air Antilles in the last quarter of 2019 and will be configured as 19-passenger regional commuter landplanes to replace the two legacy de Havilland Series 300 aircraft currently in commercial service with the airline.
With delivery of the Series 400 aircraft, Air Antilles will become the first commercial operator to receive EASA certification for steep approach landings, providing the airline with procedures to operate at approach angles in excess of 4.5 degrees. This is essential for Air Antilles’ scheduled operations to Gustaf III airport in Saint Barthelemy in order to satisfy EASA’s requirements for all commercial aircraft that access the airport to have factory certification for steep approach landings due to the surrounding mountainous terrain.
Eric Kourry, chairman of Guyane Aero Invest, the holding company of Air Antilles, commented, “As an operator of legacy de Havilland Series 300 aircraft for more than a decade, our knowledge of the Twin Otter’s exceptional flight capabilities, ease of maintenance, high dispatch reliability and suitability for our operations made selection of the Viking Series 400 a natural choice for upgrading our fleet.
“As travel tourism in the Caribbean expands, improvements to safety are becoming increasingly important for airlines to retain a competitive advantage. The innumerous improvements made to the new Series 400 will help Air Antilles increase safety and bring added value to their flight operations,” said David Caporali, Viking regional sales director for the Americas. He added, “The Caribbean shows encouraging market opportunities for Series 400 Twin Otter due to its low operating costs, ability to access the many short runways throughout the region, and its ability to support growth of an inter-island commercial transportation network. We highly value Air Antilles’ initiative to be the launch customer for the Series 400 in the region and are confident this relationship will yield many good results for both parties.”
About Air Antilles:
Compagnie Aerienne Inter Regionale Express (CAIRE), created in 2002, is an airline that operates under the name Air Guyane in the French Guiana, and under the name Air Antilles in the Caribbean. Air Antilles is one of the main regional airline companies in the Caribbean with more than 20 destinations in the area. The Twin Otter aircraft essentially serve from Guadeloupe to Saint Barthelemy, with Dominica soon to be added.
Pictured above: Proposed paint scheme for Air Antilles’ new Series 400 Twin Otters scheduled for delivery at the end of 2019.
Duluth, Minn. and Knoxville, Tenn. (4 June 2019) – Cirrus Aircraft announced today that Zean Nielsen has been selected to succeed Co-founder Dale Klapmeier as its next Chief Executive Officer (CEO). Nielsen has held senior leadership roles at a range of global world-class organizations, including Tesla Motors, James Hardie and Bang & Olufsen.
“Cirrus Aircraft has a remarkably bright future ahead,” noted Dale Klapmeier, Co-founder and National Aviation Hall of Fame member. “We are fortunate to have someone of Zean’s caliber and experience to lead us into the next era of growth. I am looking forward to moving into a Senior Advisory role and continuing to work with our exceptional team on reinventing the future of personal transportation.”
“I am honored and humbled to join this team of experienced general aviation leaders and a world-class workforce as we continue to bring game-changing products and services to market,” said Zean Nielsen, CEO of Cirrus Aircraft. “Our mission is to deliver an aviation experience that is the pinnacle of innovation, quality and safety to our customers – and that is exactly what we will continue to do for many years to come.”
Zean most recently served as the Executive Vice President of North American Sales at James Hardie, a leading industrial building materials company. Prior to his role at James Hardie, Nielsen ran all aspects of Tesla Motors worldwide sales operations efforts as the Vice President of Global Sales Operations. Zean began his career at Bang & Olufsen, the luxury electronics maker, where over a 17 year career he ascended to more senior roles before he ultimately became the President of Bang & Olufsen North and South America, prior to joining Tesla Motors.
Nielsen assumed the CEO role at Cirrus Aircraft on 3 June 2019.
About Cirrus Aircraft
Cirrus Aircraft is the recognized global leader in personal aviation and the maker of the best-selling SR Series piston aircraft and the Vision JetTM, the world’s first single-engine Personal JetTM, as well as the recipient of the Robert J. Collier Trophy. Founded in 1984, the company has redefined performance, comfort and safety in aviation with innovations like the Cirrus Airframe Parachute System® (CAPS®) – the first FAA-certified whole-airframe parachute safety system included as standard equipment on an aircraft. To date, worldwide flight time on Cirrus aircraft has passed 10.5 million hours and 172 people have returned home safely to their families as a result of the inclusion of CAPS as a standard feature on all Cirrus aircraft. The company has four locations in the United States, located in Duluth, Minnesota, Grand Forks, North Dakota, Knoxville, Tennessee and McKinney, Texas.
Emirates Airline Selects Cirrus Aircraft SR22 for Flight Training Academy Fleet
Bombardier Commercial Aircraft today celebrated the delivery of the
first of two Q400 aircraft ordered by Qazaq Air JSC of Kazakhstan
(“Qazaq Air”) in 2017. The order followed Qazaq Air’s successful launch
of domestic service in Kazakhstan in July 2015, using three leased Q400
aircraft.
Qazaq Air’s Acting Chief Executive Officer, Adel Dauletbek and the
airline’s Head of Public Relations, Sergey Khetsuriani, joined the
airline’s flight and acceptance crew during a special delivery ceremony
at Bombardier’s Toronto site where the Q400 aircraft is manufactured.
H.E. Akylbek Kamaldinov, Ambassador of Kazakhstan to Canada was in
attendance as well as Bombardier Commercial Aircraft’s team which
included Ross Mitchell, Vice President, Commercial Operations and Mark
Gilbert, Director, Sales.
“We are delighted with the performance of our fleet of Q400
turboprops and are excited to welcome the additional aircraft into our
operation,” said Mr. Dauletbek. “With our larger fleet, our customers
will benefit from the expansion of our route network within Kazakhstan,
as well as to nearby cities in the Central Asian region.”
“We congratulate Qazaq Air on the growth of its operations and
expansion of its network,” said Mr. Mitchell. “The Q400 aircraft
continues to prove itself in some of the most challenging locations
around the world. The aircraft’s speed, range and fuel efficiency, and
especially its certification for operations down to -54°C make it ideal
for operations on Qazaq Air’s long routes in the Kazakh market.”
About Qazaq Air
Qazaq Air is a young, dynamically growing regional airline in
Kazakhstan, 100 per cent of which is owned by “Samruk-Kazyna” Sovereign
Welfare Fund.
About Q400 Aircraft
Designed as a modern, 21st-century turboprop, the Q400 aircraft is the most recent development in the Q Series family of aircraft. It provides unmatched performance, operational flexibility and passenger comfort. In addition to the standard single-class configuration, Q400 aircraft are available with an optional dual-class interior for enhanced passenger comfort; in an optional extra-capacity configuration offering up to 90 seats for higher-density markets; and in a cargo-passenger combi configuration.
Toronto, March 29, 2019 – Bombardier
Commercial Aircraft announced today that a customer, who has requested
to remain unidentified at this time, has signed an order to acquire six
new Q400 aircraft.
Based on the list price of the Q400 aircraft, the firm order is valued at approximately US$ 202 million.
“The Q400 aircraft offers the perfect balance of passenger comfort
and operating economics while maintaining its unmatched range and speed
advantage versus other turboprops,” said Fred Cromer, President,
Bombardier Commercial Aircraft. “The demand for turboprop aircraft
worldwide is tremendous and the Q Series aircraft are ideally positioned
to meet the needs of regional airlines as they offer a unique ability
to serve diverse and challenging environments. The Q400 offers the
lowest seat costs amongst turboprops, with an enhanced passenger
experience and a proven 99.5 per cent reliability.”
About Bombardier
With over 68,000 employees across
four business segments, Bombardier is a global leader in the
transportation industry, creating innovative and game-changing planes
and trains. Our products and services provide world-class transportation
experiences that set new standards in passenger comfort, energy
efficiency, reliability and safety.
Headquartered in Montreal, 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 US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
BUCHAREST, March 14 (Reuters) – Romania’s Blue Air will make a decision on its order for 12 Boeing 737 MAX 8 jets only after an investigation into a fatal crash of one of the planes in Ethiopia at the weekend, CEO Marius Puiu told Reuters.
Puiu said his company was “monitoring the situation very carefully.”
“We
trust the world-wide precautionary suspension of flights, a decision
that puts civil aviation transport safety first,” said Puiu, adding the
first 737 MAX 8 plane was planned to arrive in Romania this summer.
“We
are in permanent contact with the manufacturer, with EASA (the European
Union’s aviation safety regulator) and the Romanian civil aeronautical
authority,” he said.
Currently, Blue Air operates 25 Boeing 737 series aircraft – 737-300, 737-400, 737-500, 737-700 and 737-800, with capacities ranging from 120 to 189 seats.
(Reporting by Radu Marinas; Editing by Mark Potter)
-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.
