- Business aircraft: 143 deliveries; 107 net orders;
- Commercial aircraft: 97 deliveries; 93 net orders;
- Amphibious aircraft: 4 deliveries; 1 net order
MONTREAL, QUEBEC--(Marketwire - Feb. 17, 2011) - Bombardier Aerospace announced today that it delivered 244 aircraft for the fiscal year ending January 31, 2011, compared to 302 aircraft deliveries in the previous fiscal year 2009/10 (year ending January 31, 2010). It received 201 aircraft orders, net of cancellations, compared to 11 orders, net of cancellations, for the previous fiscal year. The fourth quarter was especially strong for business aircraft, with 74 net aircraft orders.
Bombardier Aerospace had a solid performance despite the continued impact of the economic environment on the aviation industry and the slower than anticipated recovery from the global financial crisis.
In fiscal year 2010/11, Bombardier delivered 143 business jets, compared to 176 for the same period last fiscal year. For the same time period, Bombardier delivered 97 commercial aircraft, compared to 121 for the previous fiscal year. These delivery results are essentially in line with the previously announced guidance to deliver approximately 15 per cent less business aircraft and 20 per cent fewer commercial aircraft in fiscal year 2010/11, compared to the previous fiscal year.
"With a comprehensive portfolio of products, we believe our fundamentals are strong in the long term for both the business and commercial aircraft markets," said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. "The aviation industry is cyclical by nature and Bombardier's long history of success is attributable to our ability to face each challenge head-on, focus on the things we can control and put our plans into action," continued Mr. Hachey. "Over the past years, we have taken significant steps to strengthen our operations and continue to invest in our future programs. By meeting the challenges of today and setting our sights on the future, we believe we are creating a loyal customer base for our products and services, and will emerge from this difficult environment a stronger and more efficient company."
Delivery guidance for calendar year 2011
As of February 1, 2011, Bombardier reports its financial results under International Financial Reporting Standards (IFRS). Our intent is also to request approval from our Board of Directors in December 2011 to change our financial year-end from a fiscal year-end of January 31, to a calendar year-end of December 31. If this change of year-end reporting is accepted, Bombardier Aerospace's fourth quarter would end on December 31, 2011, covering only two months (November and December), and result in a fiscal year of 11 months rather than a 12-month reporting period.
Going forward under IFRS, Bombardier Aerospace's revenue recognition policy will be aligned for all its aircraft programs and revenues will be recognized only upon delivery of the completed aircraft to the customer. This change in reporting impacts Bombardier's medium and large families of business aircraft (Challenger and Global). Currently, under the Canadian Generally Accepted Accounting Principles (GAAP), Bombardier recognizes deliveries of these business aircraft programs partially at "green" (i.e. before exterior painting and installation of interiors and optional avionics) and partially at delivery of the completed aircraft. Under the new IFRS rules, revenues will be recognized only when the completed aircraft is delivered to the customer.
Our delivery guidance for 2011 is based on IFRS and an 11-month year(i).
Bombardier's business aircraft deliveries for the calendar year 2011 are expected to be approximately 150 units.
Bombardier's commercial aircraft deliveries for the calendar year 2011 are expected to be approximately 90 units.
Tables at the end of this press release provide delivery totals and net order totals for business, commercial and amphibious aircraft for fiscal years 2010/11 and 2009/10 under Canadian GAAP.
A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2010, were $19.4 billion, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com.
(i) Please refer to the "Risks and Uncertainties" section of the Management's Discussion and Analysis included in Bombardier's fiscal year 2009/10 annual report.
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