Four Avelia Euroduplex trains from the SNCF fleet will enter commercial service on Monday 10 May 2021 on the Madrid-Barcelona route. They will be operated by OUIGO España, a local subsidiary of SNCF. The trains have been converted by Alstom and SNCF to run on the Spanish high-speed rail network.
Following on from these first four trains, 10 other trains are currently being converted by Alstom to serve several high-speed routes in Spain: initially, the Madrid-Valencia and Madrid-Alicante routes and subsequently, Andalusia (Madrid-Seville and Madrid-Malaga). OUIGO España will thus have a fleet of 14 trains for 5 destinations departing from Madrid: Barcelona, Valencia, Alicante, Seville, and Malaga.
During the conversion process of the trains, Alstom developed and deployed on-board signalling equipment architecture, necessary for rail traffic safety and performance, based on its digital ERTMS[1] solution Atlas. This solution ensures that Avelia Euroduplex trains are compliant and can be approved for Spanish infrastructures.
ALSTOM; IBRE ; experienced designer and producer and brake discs & levers; IBRE , experienced designer and producer and brakedisc & levers; 89100 Saint-Denis-lès-Sens.Autorisation image OK
Alstom is taking a new step forward in the implementation of its AiM (Alstom in Motion) strategic plan in France with the acquisition of Ibre, a company specialised in the development, manufacture and supply of cast iron or steel brake discs for high-speed, intercity, regional and suburban trains, trams and metros. Alstom and Ibre already had a long working relationship on projects for SNCF.
With the acquisition, Alstom will reinforce its internal capabilities regarding railway braking systems, which are essential to the overall dynamic performance of trains.
Ibre employs around 30 people at its Sens site in the region of Bourgogne Franche Comté and had a turnover of approximately €10 million in 2019. It is a company with an international scope, with more than half of its sales in France, of both original equipment and replacements. The rest primarily serves customers in Austria, Australia, Belgium, Scandinavia, England, India and Germany.
“This acquisition represents very promising development potential for Ibre and its employees and is in line with Alstom’s strategy to extend its know-how,” says Jean-Baptiste Eyméoud, Senior Vice President Alstom France.
Railway brake discs are one of the critical components of the braking system. Alstom’s acquisition of Ibre represents a unique opportunity to extend its offer. Ibre products will be offered as original equipment and as part of maintenance contracts. Following completion of the transaction, which took place on 30 June, the company, renamed “Alstom Ibre”, becomes a wholly owned subsidiary of Alstom.
IBRE is an experienced designer and producer and brake discs & levers
22 October 2019 – Alstom will supply 39 additional Coradia Polyvalent trains to the Grand Est region for the sum of approximately 360 million euros[1]. The region had already ordered 40 Coradia Polyvalent trains, of which 36 have already been delivered. Deliveries of these new trains will be staggered between 2022 and 2024.
Firstly, this new order covers 30 trains intended for cross-border circulation in Germany. These 4-car trains, which are dual mode – dual voltage 25 kV / 15 kV and comply with German safety requirements, will run at 160 km/h, serving the German states of Saarland, Rhineland-Palatinate and Baden-Württemberg. The 30 Coradia Polyvalent cross-border trains will offer a first-class zone and an area for bicycles, and will incorporate the new TSI PRM[2] 2014 standard, notably offering more spacious toilets to facilitate movement for passengers with reduced mobility. The first cross-border trains will be delivered at the end of 2023.
Secondly, nine additional Coradia Polyvalent trains, consisting of five 4-car and four 6-car trains, have been added to the existing fleet for domestic connections. These new trains will benefit from the same special features as those already in operation in the Grand Est region.
“Alstom is proud of this new sign of trust from the Grand Est region. The expertise and innovation capacities of our French teams are mobilised to support the region in developing cross-border mobility. This order also contributes to the activity of Alstom’s Reichshoffen site,” says Jean-Baptiste Eyméoud, President of Alstom in France.
Coradia Polyvalent belongs to Alstom’s Coradia range of trains. With its modular architecture, it can be adapted to the requirements of each public transport authority as well as to different types of use: suburban, regional and intercity. It comes in three lengths (56, 72 or 110 metres) and offers optimal comfort to passengers, whatever the length of the journey. The train is both ecological and economical due to its low energy consumption, its compliance with the latest emissions standards in thermal mode and its reduced maintenance costs. Coradia Polyvalent is the first French regional train to comply with all European standards, in particular with regard to access for people with reduced mobility.
To date, 387 Coradia Polyvalent trains have been ordered as part of the contract awarded to Alstom by SNCF in October 2009, including 320 Coradia Polyvalent for Régiolis by 9 French regions and 67 Coradia Liner by the French state, the authority responsible for the country’s TET (intercity) trains. Régiolis has already covered nearly 85 million kilometres in commercial service.
The Coradia Polyvalent train also meets the needs of the export market: 17 trains have been ordered by SNTF (Algeria) and 15 trains by APIX (Senegal).
This is Coradia Polyvalent’s second cross-border application as the region of Auvergne-Rhône-Alpes has ordered 17 Léman Express Coradia Polyvalent trains, to be commissioned on the CEVA cross-border line between France and Switzerland in mid-December 2019.
The manufacturing of Coradia Polyvalent secures more than 4,000 jobs in France for Alstom and its suppliers. Six of Alstom’s 12 sites in France are involved in the project: Reichshoffen for the design and assembly, Ornans for the engines, Le Creusot for the bogies, Tarbes for the traction chains, Villeurbanne for the on-board electronics and signalling products, and Saint-Ouen for the design.
[1] Booked in the second quarter of the current fiscal year
[2] Technical Specifications for Interoperability relating to Persons with Reduced Mobility
27 August 2019 – Alstom has delivered the first five Coradia Polyvalent Léman Express trains for the cross-border CEVA[1] line to the SNCF Technicentre in Annemasse. Five trains will now be delivered each month until the end of November, with entry into commercial service scheduled for 15 December 2019. Since mid-August, Alstom’s teams have been supporting SNCF in training drivers for these new trains.
A total of 17 trains from Alstom’s Coradia Polyvalent range have been ordered[2] by SNCF, financed entirely by the region of Auvergne-Rhône-Alpes, to run on the Léman Express, Europe’s largest cross-border rail network (45 stations, 230 km). The Coradia Polyvalent Léman Express trains contribute to providing a sustainable alternative to the car for the daily commutes of Greater Geneva’s residents, as well as a better service to the economic and tourist hubs of the entire region. Today, just 16% of the 550,000 daily cross-border trips are made on public transport.
The Coradia Polyvalent Léman Express trains belong to Alstom’s Coradia range, of which 348 trains have been sold to 9 French regions[3] as part of the contract awarded to Alstom by SNCF in October 2009. The fleet has already covered more than 50 million kilometres in commercial service.
The trains have been adapted to the specific characteristics of the Franco-Swiss cross-border CEVA line: configured in their suburban version, each 72-metre train can carry up to 204 seated passengers at speeds of up to 140 km/h, in accordance with Swiss certification. Designed to ensure cross-border connections with ERTMS technology[4], Coradia Polyvalent Léman Express trains can run on several types of network voltages[5].
To optimise the fluidity of passenger exchanges and reduce stopping time in stations, the Coradia Polyvalent Léman Express trains are equipped with a full low floor, seven doors on each side, all with bridge plates, and a large reception area on the platforms. Coradia Polyvalent is the first train to comply with the PRM-TSI standard[6]. The interior offers increased comfort thanks to the seats equipped with individual reading lights and electrical sockets and the spaces dedicated to bicycles and luggage. Large windows and reduced noise levels also improve the quality of the journey.
The manufacturing of Coradia Polyvalent involves more than 4,000 jobs in France at Alstom and its suppliers. Six of Alstom’s 13 sites in France are involved in the project: Reichshoffen for the design and assembly, Ornans for the engines, Le Creusot for the bogies, Tarbes for the traction chains, Villeurbanne for the on-board computerised systems and signalling products, and Saint-Ouen for the design.
-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.
