Bombardier reports increased revenues for Q1 2021
The Montréal-based manufacturer Bombardier said it expected a turnover of $1.3 billion, an 18% year-on-year increase, as it unveiled its preliminary results for the first quarter of the year on May 3, 2021. The company expects a financial result before interest, taxes and depreciation of $123 million for the first quarter of the year
“The preliminary financial results we are sharing today validate the actions we have taken to reposition our business and reflect the progress we are making on our strategic priorities,” said Éric Martel, President and Chief Executive Officer of Bombardier. “The first quarter was a strong start to the year, with our cost reduction initiatives beginning to contribute to the bottom line, the continued progress of our Global 7500 learning curve, and robust demand supporting significant year-over-year margin expansion.”
For the first quarter ended March 31, 2021, Bombardier expects to have delivered 26 business jets, the same amount during the same period in 2020. The yearly forecast still stands at 110 to 120 aircraft delivered. “Looking ahead, our markets continue to show signs of improvement, our plans are progressing according to schedule and our financial results remain on target,” Martel commented. In 2020, deliveries had fallen by 20% to 114 jets in 2020. The final results for the first quarter of 2021 will be unveiled on May 6, 2021.
In a separate statement, Bombardier reported having received a letter on April 22, 2021, from the holder of debt security maturing in 2034, in which they accused the manufacturer of “a breach of certain covenants” through the sales of its assets, such as its transportation business, CRJ regional jet program, and aerostructures division. As a reminder, Mitsubishi Heavy Industries purchased the Bombardier CRJ program for $550 million in June 2019. Believing that these allegations are unfounded, Bombardier decided to seek consent from its noteholders.
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