Bombardier Inc.: Strong Revenue and Earnings Growth, Highlights of Bombardier's Second Quarter Performance.Business Editors MONTREAL--(BUSINESS WIRE)--Aug. 21, 2001 Bombardier Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BBD BBD In currencies, this is the abbreviation for the Barbados Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. .A.) (TSE:BBD.B.)
- Consolidated revenues rise 44% to $4.9 billion
- Income climbs 42% to $298.6 million, before special item and
goodwill amortization
- Backlog climbs to $45.9 billion with the Adtranz acquisition
Bombardier Inc. today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues of $4.9 billion for the three months ended July July: see month. 31, 2001, an increase of 44% over revenues of $3.4 billion for the second quarter of 2000. Income before special item and goodwill amortization for the latest period increased 42% to $298.6 million, compared with income of $210.1 million on the same basis for the preceding year. Earnings per share before special item and goodwill amortization rose to $0.22, compared with $0.16 on the same basis for the previous year. After the net effect of the special item and goodwill amortization, net income for the quarter amounted to $287.9 million, or $0.21 per share, against $254.1 million, or $0.19 per share on the same basis in the second quarter of last year. For the six months ended July 31, 2001, consolidated revenues totalled $9.0 billion, a 34% increase over revenues of $6.7 billion for the same period last year. Income before special item and goodwill amortization rose to $539.6 million, an increase of 33% compared to an income of $405.2 million on the same basis for the previous year. Earnings per share before special item and goodwill amortization, for the six-month period, rose to $0.39 from $0.29 the previous year, a 34% increase. After the net effect of the special item and goodwill amortization, net income for the six-month period amounted to $528.9 million, or $0.38 per share, compared to $401.5 million on the same basis, or $0.29 per share, for the six months ended July 31, 2000. Bombardier's order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at July 31, 2001 totalled $45.9 billion, which represents an increase of 49% from a backlog of $30.9 billion at July 31, last year. Delivering on commitments "These strong results for the first half of the year are in line with our commitments to continue growing Bombardier's revenue base and to increase earnings per share by 30 - 40% for fiscal 2001-2002," said Robert E. Brown Robert E . "Bob" Brown (18 April 1927 - 29 November 2005) was an ethnomusicologist who is credited with coining the term "world music". He was also well known for his recordings of music from Indonesia. , Bombardier's president and chief executive officer. Mr. Brown observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. that: "The impressive growth in second quarter revenues results largely from the consolidation of the accounts of Adtranz and of the activities relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of the engine assets of Outboard Marine The Outboard Marine Corporation was a maker of boat motors and maintenance supplies, they also owned several lines of boats such as Chris Craft. They are now owned by Bombardier. Corporation (OMC OMC Organisation Mondiale du Commerce (French: WTO) OMC Organización Mundial del Comercio (Spanish: World Trade Organization) OMC Organização Mundial do Comércio ) and from growth in the aerospace segment. The enhanced bottom line for the period was mainly the result of increased aircraft deliveries, improved pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta margins in the aerospace and recreational products segments and consolidation of the results of the current year acquisitions." "These excellent results demonstrate the benefits of our strategy to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. and balance our markets, from both the geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. and product perspectives, serving as buffers to help Bombardier in alleviating the impact of economic slowdowns," added Mr. Brown. "The recent acquisitions are already reaping benefits as demonstrated by our record $45.9 billion order backlog. New order intake intake /in·take/ (in-tak´) the substances, or the quantities thereof, taken in and utilized by the body. intake, n the substance or quantities thereof taken in and used by the body. for the first six months of the fiscal year in both aerospace and transportation was also strong."
Bombardier Aerospace
- Q2 revenues up 27% to $2.7 billion
- Aircraft deliveries increase to 91 units from 83 in same period
last year
- Income before special item and income taxes increases 30% to
$329.1 million
- 200 new regional aircraft firm orders in first half of year
- Order backlog grows to $25.9 billion
For the three months ended July 31, 2001, Bombardier Aerospace Bombardier Aerospace is a division of the Bombardier group, with the third largest workforce (behind Boeing and Airbus) and the fourth largest in yearly delivery of commercial airplanes (behind Boeing, Airbus and Embraer). had revenues of $2.7 billion, compared with $2.1 billion in the previous year. Aerospace income before special item and income taxes for the second quarter was $329.1 million, compared with $253.4 million before special item for the same quarter last year. Aircraft deliveries totalled 91 units, compared with 83 in the second quarter of the previous fiscal year. During the second quarter, Bombardier received firm orders for 115 CRJ CRJ Canadair Regional Jet CRJ Chiropractic Research Journal CRJ Commission for Racial Justice CRJ Cylinder Reduction Jumper * aircraft, nine Q400* and one Q300* turboprop turboprop: see turbine. turboprop Hybrid engine that provides jet thrust and also drives a propeller. It is similar to the turbojet except that an added turbine, behind the combustion chamber, works through a shaft and speed-reducing gears to turn a aircraft. Major sales were made to: Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. Airlines, 75 firm orders for CRJ200* Series plus options and purchase rights on an additional 175 aircraft; and Mesa Air Group Mesa Air Group (NASDAQ: MESA) is a Nevada Corporation[1] commercial aviation holding company with headquarters in Phoenix, Arizona. The company operates three regional airline subsidiaries: Mesa Airlines, Freedom Airlines, and Air Midwest, and five supporting , firm orders for 20 CRJ700* and 20 CRJ900* aircraft, and options to purchase 40 additional aircraft. Given the strong demand for the CRJ family of products, the production rate is being increased, as previously announced, to deliver 135 CRJ200 aircraft this fiscal year, 165 in 2002-2003, and 174 in 2003-2004. The new production plant in Mirabel Mirabel may refer to: Mirabel is also an alternative term for a mugger, also known as those who study extremely hard. Mirabel is the name of a community in Quebec, Canada. It is the location of Mirabel International Airport, serving Montreal. has already begun to operate.
Bombardier Transportation
- Results of Adtranz included as of May 1, 2001
- Q2 revenues up 114% to $1.6 billion
- Income before income taxes and goodwill amortization of $77.8
million
- New contract wins totalling $2 billion since beginning of year
- Order backlog of $20.0 billion
For the three months ended July 31, 2001, Bombardier Transportation Bombardier Transportation is the rail equipment division of the Bombardier group. Bombardier Transportation is the world’s largest company in the rail equipment manufacturing and servicing industry. Its headquarters are in Berlin. had revenues of $1.6 billion, compared with $752.7 million in the previous year. For the period, income before income taxes and goodwill amortization was $77.8 million, compared with $37.6 million for the same quarter the previous year. The increase in revenues is the result of the consolidation of Adtranz operations with those of Bombardier Transportation, as of May 1, 2001, as well as of a higher level of activity for the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of subway subway: see rapid transit. subway Underground railway system used to transport passengers within urban and suburban areas. The first subway line, 3. and VirginRail contracts. During the second quarter, Bombardier Transportation concluded contracts for a total value of $805 million in seven countries. Included were orders to supply: 10 seven-car intercity in·ter·cit·y adj. Relating to, involving, or connecting two or more cities: intercity rivalry; an intercity bus. Intercity Adjective trademark trains valued at $153 million to the Swiss Federal Railways; the modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, of 60 three-car trainsets valued at $132 million to the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. Railways; 55 low-floor trams valued at $112 million to the Istanbul Istanbul (ĭs'tănb  l`, ĭstan`bl), city (1990 pop. 6,748,435), capital of Istanbul prov. Transportation
Company; seven intercity trainsets valued at $56 million to the Swedish
County Traffic Company Skanetrafiken; and 24 automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. airport people movers people mover n. A means of mass transit, such as a moving sidewalk or a monorail, used to transport people, usually along a fixed route. people mover Noun Brit, Austral & NZ same as valued at $52 million to the City of Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , USA. Through a consortial agreement, Bombardier Transportation also received an order to supply bogies, passenger cars and driving cabs for the Paris metro. Bombardier's share of the contract is valued at $300 million. Bombardier Transportation's $20.0 billion order backlog represents an increase of more than 127% as at July 31, 2001 as a result of the inclusion of Adtranz' orders and of strong order intake since the beginning of the year. Effective May 1, 2001, Bombardier acquired Adtranz from DaimlerChrysler for an original cash consideration of $725 million US ($1.1 billion). In acquiring Adtranz, Bombardier improved considerably its positions worldwide in terms of technology, including propulsion Propulsion The process of causing a body to move by exerting a force against it. Propulsion is based on the reaction principle, stated qualitatively in Newton's third law, that for every action there is an equal and opposite reaction. , range of products, production capabilities, services activities and market geographic expansion. It also gained highly qualified and motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo people who rank amongst the best in the industry. The terms of the sale and purchase agreement (SPA Spa, commune (1991 pop. 10,140), Liège prov., E Belgium, in the Ardennes. Its therapeutic mineral springs and baths, frequented since the 16th cent., made it an internationally fashionable watering place. ) provide for a purchase price adjustment based on the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired as at April 30, 2001 (the "Net Asset Amount"). At this stage, the Corporation and DaimlerChrysler disagree on the Net Asset Amount. In such a case, the SPA provides a negotiation procedure and, if warranted, for an arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the process to establish the final purchase price.
Bombardier Recreational Products
- Q2 revenues of $418.7 million, up 27%
- Income before income taxes increases to $28.6 million
- New manufacturing facility for outboard engine production
For the three months ended July 31, 2001, Bombardier Recreational Products had revenues of $418.7 million, up 27% from $329.9 million in the previous year. Recreational products income for the latest period, before income taxes was $28.6 million, compared with $12.1 million in the second quarter last year. Increased revenues are mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the inclusion of the new outboard Not built in. Outboard devices are external to the main unit. Contrast with inboard. See offboard. engine activities. In order to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its newly acquired brands - Evinrude*, Johnson* and Ficht Ram Injection* technology - Bombardier will relaunch Relaunch can refer to several things:
Sturtevant is located at (42.698819, -87.899202)GR1. .
Bombardier Capital
- Q2 revenues of $259.8 million, up 6%
- Revenue growth mainly in Capital Services
For the three months ended July 31, 2001, Bombardier Capital had revenues of $259.8 million, compared with $245.2 million in the previous year. Bombardier Capital's loss, before income taxes was $3.0 million, compared with income before income taxes of $11.6 million for the same quarter last year. While the aircraft services portfolio in Capital Services demonstrates strong performance and the inventory finance portfolio is performing well despite a general slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the US economy, Bombardier Capital has experienced losses on its manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected finance portfolio as market conditions deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. . Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. as at July 31, 2001, totalled $14.1 billion compared with $13.3 billion as at January January: see month. 31, 2001.
The financial highlights are as follows:
(unaudited, millions of Canadian dollars, except per share amounts)
Three months Six months
ended July 31 ended July 31
2001 2000 2001 2000
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Revenues
Aerospace $2,716.4 $2,145.5 $5,337.7 $4,156.5
Transportation 1,612.7 752.7 2,453.4 1,515.8
Recreational Products 418.7 329.9 788.8 645.3
BC 259.8 245.2 522.2 467.2
Intersegment eliminations (75.7) (49.9) (150.6) (94.7)
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External revenues 4,931.9 3.423.4 8,951.5 6,690.1
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Income before special
Items, income taxes and
goodwill amortization
Aerospace 329.1 253.4 639.3 487.4
Transportation 77.8 37.6 104.2 76.7
Recreational Products 28.6 12.1 47.6 21.2
BC (3.0) 11.6 -- 21.6
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432.5 314.7 791.1 606.9
Special items -- (49.8) -- 29.7
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Income before income taxes
and goodwill amortization 432.5 364.5 791.1 577.2
Income taxes 133.9 110.4 251.5 175.7
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Income before goodwill
amortization 298.6 254.1 539.6 401.5
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Goodwill amortization
net of taxes 10.7 -- 10.7 --
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Net income $287.9 $254.1 $528.9 $401.5
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Earnings per share, before
goodwill amortization
Basic $0.22 $0.19 $0.39 $0.29
Fully diluted $0.21 $0.18 $0.38 $0.28
Earnings per share:
Basic $0.21 $0.19 $0.38 $0.29
Fully diluted $0.20 $0.18 $0.37 $0.28
Average number of common
shares outstanding during
the period (thousands) 1,367,393 1,372,443
Bombardier Inc., a diversified diversified (di·verˑ·s manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized mo·tor·ize tr.v. mo·tor·ized, mo·tor·iz·ing, mo·tor·iz·es 1. To equip with a motor. 2. To supply with motor-driven vehicles. 3. To provide with automobiles. recreational products. It is also a provider of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and asset management. The Corporation employs 79,000 people in 24 countries in the Americas A·mer·i·cas , the See America. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and its revenues for its fiscal year ended Jan.
31, 2001 totalled Cdn$16.1 billion.
FORWARD LOOKING STATEMENTS This press release includes "forward looking statements" that are subject to risks and uncertainties. For information identifying legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , economic, climatic, currency, technological, competitive and other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see Bombardier's Annual Report under the heading Risks and Uncertainties in the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial section. *Trademark of Bombardier Inc. or its subsidiaries
BOMBARDIER INC.
Consolidated Balance Sheets
(millions of Canadian dollars)
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Bombardier Inc.
consolidated Bombardier
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July January July January
31 31 31 31
Notes 2001 2001 2001 2001
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(Unaudited) (Unaudited)
Assets
Cash and cash
equivalents $662.7 $1,373.9 $647.1 $1,358.8
Receivables 2,093.7 851.2 1,848.6 626.5
Asset-based financing items 3 10,355.3 8,970.8 52.4 62.0
Inventories 4 8,518.1 6,413.7 8,518.1 6,413.7
Fixed assets 3,222.3 2,090.9 3,068.2 1,958.1
Goodwill 2 2,516.9 - 2,516.9 -
Investment in and
advances to BC - - 1,493.9 1,581.5
Other assets 1,193.6 703.8 918.1 421.6
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$28,562.6 $20,404.3 $19,063.3 $12,422.2
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Liabilities
Short-term borrowings $3,904.8 $2,531.2 $1,232.6 $-
Advances from Bombardier - - - -
Accounts payable and
accrued liabilities 6,387.8 4,036.6 6,214.0 3,840.0
Advances and progress
billings in excess
of related costs 3,213.7 2,362.8 3,213.7 2,362.8
Long-term debt 5 8,694.8 6,131.2 2,045.1 879.4
Other liabilities 2,134.3 1,530.1 2,130.7 1,527.6
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24,335.4 16,591.9 14,836.1 8,609.8
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Shareholders' equity
(Investment in BC)
Preferred shares Issued and outstanding:
Series 2: 12,000,000 300.0 300.0 300.0 300.0
Common shares
Issued and outstanding:
Class A: 344,270,977
(347,426,366 as at
January 31, 2001) 47.6 48.1 47.6 48.1
Class B: 1,024,771,593
(1,018,624,370 as at
January 31, 2001) 837.5 821.9 837.5 821.9
Retained earnings 3,055.1 2,660.0 3,055.1 2,660.0
Deferred translation
adjustment (13.0) (17.6) (13.0) (17.6)
Investment in BC - - - -
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4,227.2 3,812.4 4,227.2 3,812.4
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$28,562.6 $20,404.3 $19,063.3 $12,422.2
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Consolidated Balance Sheets
(millions of Canadian dollars)
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BC
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July January
31 31
Notes 2001 2001
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(Unaudited)
Assets
Cash and cash equivalents $15.6 $15.1
Receivables 245.1 224.7
Asset-based financing items 3 10,302.9 8,908.8
Inventories 4 - -
Fixed assets 154.1 132.8
Goodwill 2 - -
Investment in and advances to BC - -
Other assets 275.5 282.2
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$10,993.2 $9,563.6
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Liabilities
Short-term borrowings $ 2,672.2 $2,531.2
Advances from Bombardier 99.6 205.5
Accounts payable and accrued liabilities 173.8 196.6
Advances and progress billings
in excess of related costs - -
Long-term debt 5 6,649.7 5,251.8
Other liabilities 3.6 2.5
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9,598.9 8,187.6
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Shareholders' equity (Investment in BC)
Preferred shares
Issued and outstanding:
Series 2: 12,000,000 - -
Common shares
Issued and outstanding:
Class A: 344,270,977
(347,426,366 as at January 31, 2001) - -
Class B: 1,024,771,593
(1,018,624,370 as at January 31, 2001) - -
Retained earnings - -
Deferred translation adjustment - -
Investment in BC 1,394.3 1,376.0
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1,394.3 1,376.0
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$10,993.2 $9,563.6
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The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
BOMBARDIER INC.
Consolidated Statements of Income (Unaudited) For the three months
ended July 31 (millions of Canadian dollars)
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Bombardier Inc.
consolidated Bombardier
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Notes 2001 2000 2001 2000
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Revenues $4,931.9 $3,423.4 $4,741.9 $3,223.6
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Expenses
Cost of sales and
operating expenses 4,393.8 3,042.3 4,204.1 2,865.2
Depreciation and amortization 69.3 54.1 66.0 51.7
Interest expense 41.1 21.6 41.1 12.9
Interest income (4.8) (9.3) (4.8) (9.3)
Net loss (income) from BC - - 1.8 (6.8)
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4,499.4 3,108.7 4,308.2 2,913.7
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Income (loss) before
special item, income taxes
and goodwill amortization 432.5 314.7 433.7 309.9
Special item 6 - (49.8) - (49.8)
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Income (loss) before
income taxes and
goodwill amortization 432.5 364.5 433.7 359.7
Income taxes 133.9 110.4 135.1 105.6
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Income (loss) before
goodwill amortization 298.6 254.1 298.6 254.1
Goodwill amortization,
net of tax 10.7 - 10.7 -
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Net income (loss) $287.9 $254.1 $287.9 $254.1
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Earnings per share:
Basic $0.21 $0.19
Fully diluted $0.20 $0.18
Earnings per share,
before goodwill amortization
Basic $0.22 $0.19
Fully diluted $0.21 $0.18
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Consolidated Statements of Income (Unaudited) For the three months
ended July 31 (millions of Canadian dollars)
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BC
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Notes 2001 2000
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Revenues $259.8 $245.2
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Expenses
Cost of sales and operating expenses 259.5 222.5
Depreciation and amortization 3.3 2.4
Interest expense - 8.7
Interest income - -
Net loss (income) from BC - -
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262.8 233.6
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Income (loss) before special item,
income taxes and goodwill amortization (3.0) 11.6
Special item 6 - -
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Income (loss) before income
taxes and goodwill amortization (3.0) 11.6
Income taxes (1.2) 4.8
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Income (loss) before goodwill amortization (1.8) 6.8
Goodwill amortization, net of tax - -
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Net income (loss) $(1.8) $6.8
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The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
BOMBARDIER INC.
Consolidated Statements of Income (Unaudited) For the six months
ended July 31 (millions of Canadian dollars)
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Bombardier Inc.
consolidated Bombardier
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Notes 2001 2000 2001 2000
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Revenues $8,951.5 $6,690.1 $8,568.3 $6,309.0
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Expenses
Cost of sales and
operating expenses 7,968.0 5,958.2 7,590.8 5,621.2
Depreciation and amortization 136.5 107.6 130.5 102.7
Interest expense 73.0 44.0 73.0 26.4
Interest income (17.1) (26.6) (17.1) (26.6)
Net income from BC
before BC's special item - - - (12.7)
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8,160.4 6,083.2 7,777.2 5,711.0
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Income before special
items, income taxes
and goodwill amortization 791.1 606.9 791.1 598.0
Special items 6 - 29.7 - (2.1)
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Income (loss) before income
taxes and goodwill amortization 791.1 577.2 791.1 600.1
Income taxes 251.5 175.7 251.5 198.6
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Income (loss) before
goodwill amortization 539.6 401.5 539.6 401.5
Goodwill amortization, net of tax 10.7 - 10.7 -
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Net income (loss) $528.9 $401.5 $528.9 $401.5
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Earnings per share:
Basic $0.38 $0.29
Fully diluted $0.37 $0.28
Earnings per share,
before goodwill amortization
Basic $0.39 $0.29
Fully diluted $0.38 $0.28
Average number of common
shares outstanding during
the period (in thousands) 1,367,393 1,372,443
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Consolidated Statements of Income (Unaudited) For the six months
ended July 31 (millions of Canadian dollars)
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BC
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Notes 2001 2000
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Revenues $522.2 $467.2
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Expenses
Cost of sales and operating expenses 516.2 423.1
Depreciation and amortization 6.0 4.9
Interest expense - 17.6
Interest income - -
Net income from BC before BC's special item - -
---------------------------------------------------------------------
522.2 445.6
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Income before special items,
income taxes and goodwill amortization - 21.6
Special items 6 - 79.5
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Income (loss) before income
taxes and goodwill amortization - (57.9)
Income taxes - (22.9)
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Income (loss) before goodwill amortization - (35.0)
Goodwill amortization, net of tax - -
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Net income (loss) $- $(35.0)
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The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
BOMBARDIER INC.
Consolidated Statements of Retained Earnings
(Unaudited)
For the six months ended July 31
(millions of Canadian dollars)
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Bombardier Inc.
Consolidated
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2001 2000
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Balance at beginning of period $2,660.0 $2,392.5
Effect of change of accounting
policy for employee future benefits - (210.6)
---------------------------------------------------------------------
Balance at beginning of period - adjusted 2,660.0 2,181.9
Net income 528.9 401.5
Dividends:
Preferred shares (8.2) (8.2)
Common shares (124.7) (94.1)
Excess of redemption price of
common shares over stated value - (284.1)
Other (0.9) (0.9)
---------------------------------------------------------------------
Balance at end of period $3,055.1 $2,196.1
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
BOMBARDIER INC.
Consolidated Statements of Cash Flows (Unaudited) For the three
months ended July 31 (millions of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Bombardier Inc.
consolidated Bombardier
---------------------------------------------------------------------
Notes 2001 2000 2001 2000
---------------------------------------------------------------------
Operating activities
Net income (loss) $287.9 $254.1 $287.9 $254.1
Non-cash items:
Depreciation and
amortization 112.3 69.7 76.7 51.7
Net loss (income) from BC - - 1.8 (6.8)
Provision for credit
losses 3 36.9 14.2 - -
Deferred income taxes 53.4 58.5 72.5 66.1
Special item 6 - (49.8) - (49.8)
Net changes in
non-cash balances
related to operations (1,426.7) (569.6) (1,424.8) (533.3)
---------------------------------------------------------------------
Cash flows from
operating activities (936.2) (222.9) (985.9) (218.0)
---------------------------------------------------------------------
Investing activities
Additions to fixed assets (259.2) (83.0) (238.7) (78.8)
Net investment in asset-based
financing items (995.8) (243.9) 0.7 2.1
Business acquisition,
net of cash acquired 2 (892.7) - (892.7) -
Disposal of businesses - 66.1 - 66.1
Investment in and advances to BC - - 428.0 401.7
Other 1,167.6 (17.6) 1,181.2 0.6
---------------------------------------------------------------------
Cash flows from
investing activities (980.1) (278.4) 478.5 391.7
---------------------------------------------------------------------
Financing activities
Net variation in
short-term borrowings 262.5 136.7 448.4 18.7
Net variation in
long-term debt 5 1,520.2 607.7 94.8 7.3
Issuance of shares,
net of related costs 9.1 3.5 9.1 3.5
Redemption of shares - (226.5) - (226.5)
Dividends paid (128.6) (102.1) (128.6) (102.1)
Balance of purchase
price - Adtranz 306.8 - 306.8 -
---------------------------------------------------------------------
Cash flows from
financing activities 1,970.0 419.3 730.5 (299.1)
---------------------------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents 11.8 (51.8) 13.0 (54.9)
---------------------------------------------------------------------
Net increase (decrease)
in cash and cash equivalents 65.5 (133.8) 236.1 (180.3)
Cash and cash equivalents
at beginning of period 597.2 718.9 411.0 701.5
---------------------------------------------------------------------
Cash and cash
equivalents at July 31 $662.7 $585.1 $647.1 $521.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Consolidated Statements of Cash Flows (Unaudited) For the three
months ended July 31 (millions of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
BC
---------------------------------------------------------------------
Notes 2001 2000
---------------------------------------------------------------------
Operating activities
Net income (loss) $(1.8) $6.8
Non-cash items:
Depreciation and amortization 35.6 18.0
Net loss (income) from BC - -
Provision for credit losses 3 36.9 14.2
Deferred income taxes (19.1) (7.6)
Special item 6 - -
Net changes in non-cash
balances related to operations (1.9) (36.3)
---------------------------------------------------------------------
Cash flows from operating activities 49.7 (4.9)
---------------------------------------------------------------------
Investing activities
Additions to fixed assets (20.5) (4.2)
Net investment in asset-based financing items (996.5) (246.0)
Business acquisition, net of cash
acquired 2 - -
Disposal of businesses - -
Investment in and advances to BC (428.0) (401.7)
Other (13.6) (18.2)
---------------------------------------------------------------------
Cash flows from investing activities (1,458.6) (670.1)
---------------------------------------------------------------------
Financing activities
Net variation in short-term borrowings (185.9) 118.0
Net variation in long-term debt 5 1,425.4 600.4
Issuance of shares, net of related costs - -
Redemption of shares - -
Dividends paid - -
Balance of purchase price - Adtranz - -
---------------------------------------------------------------------
Cash flows from financing activities 1,239.5 718.4
---------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents (1.2) 3.1
---------------------------------------------------------------------
Net increase (decrease)
in cash and cash equivalents (170.6) 46.5
Cash and cash equivalents at beginning of period 186.2 17.4
---------------------------------------------------------------------
Cash and cash equivalents at July 31 $15.6 $63.9
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
BOMBARDIER INC.
Consolidated Statements of Cash Flows (Unaudited) For the six
months ended July 31 (millions of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Bombardier Inc.
consolidated Bombardier
---------------------------------------------------------------------
Notes 2001 2000 2001 2000
---------------------------------------------------------------------
Operating activities
Net income (loss) $528.9 $401.5 $528.9 $401.5
Non-cash items:
Depreciation and
amortization 208.6 134.5 141.2 102.7
Net loss from BC - - - 35.0
Provision for
credit losses 3 63.8 27.7 - -
Deferred income taxes 155.8 114.4 172.6 149.0
Special items 6 - 29.7 - (49.8)
Net changes in non-cash
balances related to
operations (2,590.5) (1,512.4) (2,556.7) (1,498.3)
---------------------------------------------------------------------
Cash flows from
operating activities (1,633.4) (804.6) (1,714.0) (859.9)
---------------------------------------------------------------------
Investing activities
Additions to fixed assets (371.6) (180.1) (344.9) (173.8)
Net investment in
asset-based financing items (1,336.3) (955.8) 9.6 0.4
Business acquisitions,
net of cash acquired 2 (979.8) - (979.8) -
Disposal of businesses - 66.1 - 66.1
Investment in and advances to BC - - 110.6 279.1
Other (18.5) 0.1 (33.8) (1.4)
---------------------------------------------------------------------
Cash flows from
investing activities (2,706.2) (1,069.7) (1,238.3) 170.4
---------------------------------------------------------------------
Financing activities
Net variation in
short-term borrowings 948.5 679.0 858.2 104.1
Net variation in
long-term debt 5 2,468.7 578.0 1,168.8 15.7
Issuance of shares,
net of related costs 15.1 8.9 15.1 8.9
Redemption of shares - (294.1) - (294.1)
Dividends paid (133.1) (102.5) (133.1) (102.5)
Balance of purchase
price - Adtranz 306.8 - 306.8 -
---------------------------------------------------------------------
Cash flows from
financing activities 3,606.0 869.3 2,215.8 (267.9)
---------------------------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents 22.4 (73.9) 24.8 (70.1)
---------------------------------------------------------------------
Net increase (decrease)
in cash and cash equivalents (711.2) (1,078.9) (711.7) (1,027.5)
Cash and cash equivalents
at beginning of period 1,373.9 1,664.0 1,358.8 1,548.7
---------------------------------------------------------------------
Cash and cash
equivalents at July 31 $662.7 $585.1 $647.1 $521.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Consolidated Statements of Cash Flows (Unaudited) For the six
months ended July 31 (millions of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
BC
---------------------------------------------------------------------
2001 2000
---------------------------------------------------------------------
Operating activities
Net income (loss) $- $(35.0)
Non-cash items:
Depreciation and amortization 67.4 31.8
Net loss from BC - -
Provision for credit losses 63.8 27.7
Deferred income taxes (16.8) (34.6)
Special items - 79.5
Net changes in non-cash
balances related to operations (33.8) (14.1)
---------------------------------------------------------------------
Cash flows from operating activities 80.6 55.3
---------------------------------------------------------------------
Investing activities
Additions to fixed assets (26.7) (6.3)
Net investment in asset-based financing items (1,345.9) (956.2)
Business acquisitions, net of cash acquired - -
Disposal of businesses - -
Investment in and advances to BC (110.6) (279.1)
Other 15.3 1.5
---------------------------------------------------------------------
Cash flows from investing activities (1,467.9) (1,240.1)
---------------------------------------------------------------------
Financing activities
Net variation in short-term borrowings 90.3 574.9
Net variation in long-term debt 1,299.9 562.3
Issuance of shares, net of related costs - -
Redemption of shares - -
Dividends paid - -
Balance of purchase price - Adtranz - -
---------------------------------------------------------------------
Cash flows from financing activities 1,390.2 1,137.2
---------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents (2.4) (3.8)
---------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 0.5 (51.4)
Cash and cash equivalents at beginning of period 15.1 115.3
---------------------------------------------------------------------
Cash and cash equivalents at July 31 $15.6 $63.9
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements and provide information on the financial
statement presentation.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All figures for the periods ended July 31, 2001 and 2000 and as
of July 31, 2001 are unaudited) For the second quarter ended July 31,
2001 (tabular figures in millions of Canadian dollars)
CONSOLIDATED FINANCIAL STATEMENT PRESENTATION
Bombardier Inc. is incorporated under the laws of Canada. The
consolidated balance sheets are unclassified because Bombardier Inc.
and its subsidiaries (the "Corporation") carry out their operations in
four distinct segments, each one characterized by a specific operating
cycle. Financial services and real estate activities, being distinct
from Bombardier's other activities, are shown in a separate column
(BC) in the consolidated financial statements.
The descriptions of the columns shown in these financial
statements are as follows:
Bombardier Inc. consolidated
This column represents all of the activities of the Corporation on
a consolidated basis, after elimination of balances and transactions
between Bombardier and BC.
Bombardier
This column represents the activities of the Corporation's three
manufacturing segments (aerospace, transportation and recreational
products). These segments are grouped and referred to as "Bombardier"
and intercompany transactions and balances within this column have
been eliminated. Bombardier's investment in BC is accounted for under
the equity method and comprises BC's equity and subordinated debt of
Bombardier in BC.
BC
Bombardier Capital ("BC") represents the financial services and
real estate activities of the Corporation. Intercompany transactions
and balances within BC have been eliminated.
1. CONSOLIDATED INTERIM FINANCIAL STATEMENTS The consolidated interim financial statements include the accounts of Bombardier Inc. and its subsidiaries, substantially all of which are wholly owned. They also include the Corporation's proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of its joint ventures. The consolidated interim financial statements have been prepared by the Corporation in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) applicable to interim financial statements and follow the same accounting policies and methods of their application as the most recent annual financial statements, except for the changes in accounting policies for earnings per share and transfer of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed described in the Corporation's first quarter report for fiscal year 2002. In the opinion of Management, all adjustments necessary for a fair presentation are reflected in the interim financial statements. Such adjustments are of a normal and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. nature. The results of operations for the interim periods are not necessarily indicative indicative: see mood. of the operating results for the full year. The interim financial statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the audited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. included in the Corporation's Annual Report for fiscal year 2001. Certain reclassifications have been made to prior periods to conform with current reporting. Most legal entities of the transportation segment use a December December: see month. 31 fiscal year end. As a result, the Corporation consolidates these operations with a one month lag with the remainder of its operations. 2. BUSINESS ACQUISITIONS ADTRANZ Effective May 1, 2001, the Corporation acquired from DaimlerChrysler AG (DaimlerChrysler) of Stuttgart Stuttgart, city, Germany Stuttgart (sht t`gärt), city (1994 pop. 594,406), capital of Baden-Württemberg, SW Germany, on the Neckar River. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). its
subsidiary DaimlerChrysler Rail Systems GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) (Adtranz) based in Berlin
for an original cash consideration of $725 million US ($1.1 billion), of
which $200 million US ($306.8 million) is payable on October October: see month. 31, 2001.
The terms of the sale and purchase agreement (SPA) provides for an
adjustment to the original purchase price based on the carrying value of
the adjusted net assets acquired as at April 30, 2001 (the "Net
Asset Amount").
Starting in May 2001, Adtranz, under the ownership of the Corporation, prepared its April 30, 2001 closing balance sheet under US GAAP in accordance with the provisions of the SPA for the purpose of establishing the Net Asset Amount. As a result, adjustments to the Net Asset Amount pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the application of US GAAP were identified, related mainly to the contracts on hand. At this stage, the Corporation and DaimlerChrysler disagree on the Net Asset Amount. In such a case, the SPA provides for a negotiation procedure and, if warranted, for an arbitration process to establish the final purchase price. Management has established the preliminary purchase price allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as taking into account all relevant information at the time of preparing the quarterly consolidated financial statements. However, the ultimate outcome of the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. disagreement cannot be determined at this time. Upon resolution of the issue, any adjustments arising from the definitive purchase price allocation will be reflected as a reduction of goodwill. This acquisition has been recorded under the purchase method of accounting. The financial results of operations of Adtranz have been consolidated with those of the Corporation as of May 1, 2001. The allocation of the preliminary purchase price, including estimated acquisition costs of $40 million, to the net assets acquired at fair value is as follows:
(unaudited)
Net assets acquired at fair value
Cash and cash equivalents $279.5
Receivables 1,284.5
Inventories 1,726.6
Advances and progress billings in excess of related costs (1,678,1)
Fixed assets 842.0
Deferred income taxes 375.8
Other assets 149.3
---------------------------------------------------------------------
2,979.6
---------------------------------------------------------------------
Intercompany balance with DaimlerChrysler (374.3)
Accounts payable and accrued liabilities (2,340.6)
Advances and progress billings in excess of related costs (1,265.9)
Long-term debt (29.1)
Other liabilities (387.4)
---------------------------------------------------------------------
(4,397.3)
---------------------------------------------------------------------
Identifiable net assets at fair value (1,417.7)
---------------------------------------------------------------------
Goodwill 2,589.9
---------------------------------------------------------------------
Net assets acquired $1,172.2
---------------------------------------------------------------------
---------------------------------------------------------------------
The preliminary purchase price allocation is subject to further refinements, including those arising from the final determination of the purchase price and from completion of the plan to integrate the operations of Adtranz with the transportation segment. The excess of the preliminary purchase price over the fair value of identifiable net assets acquired is recorded as goodwill and is being amortized over forty years. Effective February February: see month. 1, 2002, the Corporation will prospectively adopt the new recommendations of the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. relating to goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and will therefore cease amortizing goodwill as of that date and adopt the goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. model introduced by the new accounting rules. The Corporation has not recognized, in its preliminary purchase price allocation, future income tax benefits amounting to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.0 billion, relating to acquired losses for tax purposes and other deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). temporary differences. Any subsequent recognition of these unrecorded future income tax benefits will be recorded as a reduction of goodwill related to this acquisition. OMC On March 9, 2001, the Corporation acquired for a cash consideration of $53.8 million US ($83.3 million), before acquisition costs of $3.8 million, most of the net assets of the engine manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. of Outboard Marine Corporation ("OMC"). This occurred following OMC's and certain of its subsidiaries' filing, on December 22, 2000, of a voluntary petition petition Written instrument directed to an individual, government official, legislative body, or court in order to seek redress of grievances or to request a favour. for relief under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
(unaudited)
Net assets acquired at fair value
Receivables $8.3
Inventories 76.3
Fixed Assets 73.8
---------------------------------------------------------------------
158.4
Accounts payable and accrued liabilities (71.3)
---------------------------------------------------------------------
Net assets acquired $87.1
---------------------------------------------------------------------
---------------------------------------------------------------------
3. ASSET-BASED FINANCING ITEMS
July 31 January 31
2001 2001
---------------------------------------------------------------------
(unaudited)
Bombardier
Assets under operating leases and commercial loans $52.4 $62.0
---------------------------------------------------------------------
BC
Consumer Products Finance
Manufactured housing 2,173.2 2,067.6
Inventory 847.9 972.1
Consumer 407.7 274.9
---------------------------------------------------------------------
3,428.8 3,314.6
---------------------------------------------------------------------
Capital Services
Aircraft 5,953.7 4,582.5
Railcar 219.2 173.7
Industrial equipment 108.0 112.3
---------------------------------------------------------------------
6,280.9 4,868.5
---------------------------------------------------------------------
Winding down portfolios (1) 710.7 858.7
---------------------------------------------------------------------
10,420.4 9,041.8
Allowance for credit losses (117.5) (133.0)
---------------------------------------------------------------------
10,302.9 8,908.8
---------------------------------------------------------------------
$10,355.3 $8,970.8
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) Include the technology management and finance, mid-market
equipment commercial finance and small ticket finance portfolios.
ASSETS UNDER MANAGEMENT - BC
July 31 January 31
2001 2001
---------------------------------------------------------------------
(unaudited)
Asset-based financing items $10,302.9 $8,908.8
---------------------------------------------------------------------
Asset-based financing items - sold to third parties and serviced by
BC:
Inventory 1,567.1 1,969.4
Manufactured housing 820.8 867.2
Consumer 377.2 467.9
Railcar 928.4 917.8
Winding down portfolios 141.5 194.2
---------------------------------------------------------------------
3,835.0 4,416.5
---------------------------------------------------------------------
Assets under management $14,137.9 $13,325.3
---------------------------------------------------------------------
---------------------------------------------------------------------
ALLOWANCE FOR CREDIT LOSSES
Changes in the allowance for credit losses are as follows:
Six months Six months
ended ended
July 31 July 31
2001 2000
---------------------------------------------------------------------
(unaudited)(unaudited)
Allowance at beginning of period $133.0 $56.5
Provision for credit losses(1) 63.8 107.2
Amounts charged off - net of recoveries (79.3) (61.8)
---------------------------------------------------------------------
Allowance at end of period $117.5 $101.9
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) For the period ended July 31, 2000, the provision for credit
losses includes a special charge of $79.5 million.
4. INVENTORIES
July 31 January 31
2001 2001
---------------------------------------------------------------------
(unaudited)
Raw materials and work in process $506.2 $395.0
Long-term contracts and aerospace programs 12,539.6 9,485.3
Finished products 1,128.0 581.8
---------------------------------------------------------------------
14,173.8 10,462.1
Advances and progress billings (5,655.7) (4,048.4)
---------------------------------------------------------------------
$8,518.1 $6,413.7
---------------------------------------------------------------------
---------------------------------------------------------------------
5. LONG-TERM DEBT Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. On February 22, 2001, the Corporation issued notes amounting to $697.5 million (500.0 million euros), 5.75% due February 2008 at a price of 99.467% and notes amounting to $388.8 million (175.0 million pounds sterling), 6.25% due February 2006 at a price of 99.442% for aggregate net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $1,076.4 million (495.4 million euros and 173.4 million pounds sterling). During the second quarter of fiscal year 2002, Bombardier Capital issued the following $1,444.2 million notes under its medium-term note Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. programs:
Average
$ Price Rate Maturity
---------------------------------------------------------------------
461.2 ($300.0 million US) 100.083% 5.625% May 2013
683.0 ($450.0 million US) 99.576% 6.125% June 2006
100.0 100% 6.60% November 2004
200.0 100% 6.35% July 2006
---------------------------------------------------------------------
As at July 31, 2001 and January 31, 2001, the Corporation had
complied with the restrictive covenants contained in its various
financing agreements.
6. SPECIAL ITEMS As part of its continuous review of the relevance of its business investments, Bombardier Aerospace decided to reduce certain of its activities in commercial aircraft services and in defense services. During the six month period ended July 31, 2000, Bombardier Aerospace sold Bombardier Services (UK) Limited's defense service business, including its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Airwork For the British aviation and defence support services company of the same name, see . Airwork is an airline based in Auckland, New Zealand. It operates a joint venture airline, Air Post, which is 50% owned by Airwork and New Zealand Post. Ltd., an operation located in the United Kingdom. The net sale proceeds of $66.1 million resulted in a net gain of $49.8 million ($44.0 million after tax). On May 12, 2000, involuntary bankruptcy involuntary bankruptcy Bankruptcy that is forced by creditors instead of being initiated by the firm or individual. Compare voluntary bankruptcy. See also Chapter 7, Chapter 11. proceedings were filed against the principal recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. lessor One who rents real property or Personal Property to another. A lessor of land is a landlord. Cross-references Landlord and Tenant. lessor n. the owner of real property who rents it to a lessee pursuant to a written lease. providing credit support for the small ticket finance portfolio which is being wound down. As a result of this development as well as defaults from other recourse lessors providing credit support for this portfolio and the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of the credit quality of this portfolio, a special charge of $79.5 million ($47.7 million after tax) has been provided for during the quarter ended April 30, 2000, related to additional provision for credit losses. 7. CONTINGENCIES Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. The Corporation is defendant in certain legal cases currently pending before various courts in relation to product liability. The Corporation is also party to several actions associated with waste disposal sites. These actions include possible obligations to remove wastes deposited at various sites or mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. their negative effects on
the environment. There are also some asbestos-related claims to
compensate railway workers for various diseases which allegedly result
from their workplace exposure to asbestos asbestos, mineralasbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. materials relating to past business involving locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
The Corporation intends to vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. defend its position in these matters. Management believes the Corporation has established adequate provisions to cover potential losses, including amounts not recoverable under insurance coverage, if any, in relation to these legal actions. 8. SEGMENT DISCLOSURE The Corporation operates in the four reportable segments described below. Each reportable segment offers different products and services, requires different technology and marketing strategies and is headed by a president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . The aerospace segment is engaged in the design, manufacture and sale of business and regional aircraft for individuals, corporations as well as commercial airline customers. It is also engaged in the manufacture of major airframe components for aircraft designed and built by other American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. aircraft manufacturers. In addition, it provides commercial and military aviation services, including technical services and pilot training. The transportation segment is the global leader in the rail equipment manufacturing and servicing industry. Its wide range of products includes passenger rail cars and complete rail transportation systems. It also manufactures locomotives, freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or cars, propulsion and train control systems and provides signaling equipment and systems. The recreational products segment is responsible for developing, manufacturing and marketing snowmobiles, watercraft, boats, all-terrain vehicles all-ter·rain vehicle n. Abbr. ATV A small, open motor vehicle having one seat and three or more wheels fitted with large tires. It is designed chiefly for recreational use over roadless, rugged terrain. , utility vehicles and engines. The capital segment (BC) includes financial services and real estate activities. The financial services are all asset-based and are grouped into two divisions: Consumer Products Finance and Capital Services. The Consumer Products Finance division comprises manufactured housing, inventory and consumer finance portfolios. The Capital Services division includes aircraft, railcars and industrial equipment portfolios. The real estate activities of this segment consist in selling land to real estate developers and renting office buildings to Bombardier. The accounting policies of the segments are the same as those described in the Corporation's annual report for fiscal year 2001. Management evaluates performance based on income or loss before special items, income taxes and goodwill amortization. Intersegment services are accounted for at current market prices as if the services were provided to third parties. Corporate interest costs are allocated to the manufacturing segments based on each segment's net assets and most corporate office charges are allocated to all segments based on each segment's revenues. Net assets exclude cash and cash equivalents, investment in and advances to BC and deferred income taxes and are net of accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. , advances and progress billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. in excess of related costs and accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. benefit liability. Effective February 1, 2001, the Corporation ceased allocation of corporate interest charges to the BC segment. The new allocation basis is now used by Management in evaluating performance and making operating decisions for each segment. The effect of this modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. was a decrease of interest expense allocated to the BC segment of $21.3 million for the six month period ended July 31, 2001. The corresponding increase in the allocation of interest expense has been mostly borne by the aerospace segment. The table containing the detailed segmented information is shown at the end of the financial statements. 9. SUBSEQUENT EVENT On August 1, 2001, the Corporation issued notes amounting to $250.0 million, due August 30, 2002, bearing interest at the one-month Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents bankers acceptance rate plus 0.20%. On August 8, 2001, the Corporation issued notes amounting to $269.3 million (200 million euros) due August 31, 2002 and notes amounting to $249.0 million (20 billion yens Yens is a municipality in the Swiss canton of Vaud, located in the district of Morges. ), due August 31, 2002, bearing interest at the variable rate of deposits in Euro and Yen respectively for a term of three months.
BOMBARDIER INC.
SEGMENT DISCLOSURE
(unaudited)
For the three months ended July 31
(millions of Canadian dollars)
Bombardier Inc.
Industry segments consolidated Aerospace
---------------------------------------------------------------------
---------------------------------------------------------------------
2001 2000 2001 2000
---------------------------------------------------------------------
External revenues $4,931.9 $3,423.4 $2,716.4 $2,145.3
Intersegment eliminations - - - 0.2
---------------------------------------------------------------------
Revenues $4,931.9 $3,423.4 $2,716.4 $2,145.5
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales and
operating expenses $4,393.8 $3,042.3 $2,280.3 $1,823.3
Depreciation and
amortization (1) 69.3 54.1 33.1 27.2
Interest expense (income), net 36.3 12.3 73.9 41.6
---------------------------------------------------------------------
4,499.4 3,108.7 2,387.3 1,892.1
---------------------------------------------------------------------
Income (loss) before special
item, income taxes
and goodwill amortization $432.5 $314.7 $329.1 $253.4
---------------------------------------------------------------------
Special item - (49.8)
---------------------------------------------------------------------
Income before
Income taxes and
goodwill amortization $432.5 $364.5
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
SEGMENT DISCLOSURE
(unaudited)
For the three months ended July 31
(millions of Canadian dollars)
Recreational
Industry segments Transportation Products
---------------------------------------------------------------------
---------------------------------------------------------------------
2001 2000 2001 2000
---------------------------------------------------------------------
External revenues $1,606.8 $748.4 $418.7 $329.9
Intersegment eliminations 5.9 4.3 - -
---------------------------------------------------------------------
Revenues $1,612.7 $752.7 $418.7 $329.9
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales
and operating expenses $1,555.7 $742.2 $374.0 $304.2
Depreciation
and amortization (1) 24.5 15.6 8.4 8.9
Interest expense (income), net (45.3) (42.7) 7.7 4.7
---------------------------------------------------------------------
1,534.9 715.1 390.1 317.8
---------------------------------------------------------------------
Income (loss) before special
item, income taxes
and goodwill amortization $77.8 $37.6 $28.6 $12.1
---------------------------------------------------------------------
Special item
---------------------------------------------------------------------
Income before income
taxes and goodwill amortization
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
SEGMENT DISCLOSURE
(unaudited)
For the three months ended July 31
(millions of Canadian dollars)
Industry segments BC
---------------------------------------------------------------------
---------------------------------------------------------------------
2001 2000
---------------------------------------------------------------------
External revenues $190.0 $199.8
Intersegment eliminations 69.8 45.4
---------------------------------------------------------------------
Revenues $259.8 $245.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales and operating expenses $259.5 $222.5
Depreciation and amortization (1) 3.3 2.4
Interest expense (income), net - 8.7
---------------------------------------------------------------------
262.8 233.6
---------------------------------------------------------------------
Income (loss) before special item,
income taxes and goodwill amortization $(3.0) $11.6
---------------------------------------------------------------------
Special item
---------------------------------------------------------------------
Income before income
taxes and goodwill amortization
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
BOMBARDIER INC.
SEGMENT DISCLOSURE
(unaudited)
For the six months ended July 31
(millions of Canadian dollars)
Bombardier Inc.
Industry segments consolidated Aerospace
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---------------------------------------------------------------------
2001 2000 2001 2000
---------------------------------------------------------------------
External revenues $8,951.5 $6,690.1 $5,337.7 $4,156.3
Intersegment eliminations - - - 0.2
---------------------------------------------------------------------
Revenues $8,951.5 $6,690.1 $5,337.7 $4,156.5
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales
and operating expenses $7,968.0 $5,958.2 $4,508.5 $3,537.0
Depreciation and
amortization (1) 136.5 107.6 65.8 54.2
Interest expense (income), net 55.9 17.4 124.1 77.9
---------------------------------------------------------------------
8,160.4 6,083.2 4,698.4 3,669.1
---------------------------------------------------------------------
Income before special
items, income taxes
and goodwill amortization $791.1 $606.9 $639.3 $487.4
---------------------------------------------------------------------
Special items - 29.7
---------------------------------------------------------------------
Income before
income taxes and
goodwill amortization $791.1 $ 577.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Additions to fixed
assets (excluding
business acquisitions) $371.6 $180.1 $164.2 $145.9
---------------------------------------------------------------------
---------------------------------------------------------------------
July January July January
31, 31, 31, 31,
As at 2001 2001 2001 2001
---------------------------------------------------------------------
Net segmented assets $7,577.8 $4,053.5 $5,329.4 $3,231.0
Accounts payable and
accrued liabilities 6,214.0 3,840.0
Advances and progress
billings in excess
of related costs 3,213.7 2,362.8
Accrued benefit liability 880.7 492.1
Advances to BC 99.6 205.5
Deferred income taxes 430.4 109.5
Cash and cash equivalents 647.1 1,358.8
------------------------------------------------
Total assets - Bombardier $19,063.3 $12,422.2
Investment in
and advances to BC (1,493.9) (1,581.5)
Total assets - BC 10,993.2 9,563.6
------------------------------------------------
Total assets - Bombardier
Inc. consolidated $28,562.6 $20,404.3
------------------------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
SEGMENT DISCLOSURE
(unaudited)
For the six months ended July 31
(millions of Canadian dollars)
Recreational
Industry segments Transportation Products
---------------------------------------------------------------------
---------------------------------------------------------------------
2001 2000 2001 2000
---------------------------------------------------------------------
External revenues $2,441.8 $1,507.4 $788.8 $645.3
Intersegment eliminations 11.6 8.4 - -
---------------------------------------------------------------------
Revenues $2,453.4 $1,515.8 $788.8 $645.3
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales
and operating expenses $2,382.1 $1,493.7 $711.8 $599.1
Depreciation
and amortization (1) 47.7 31.0 17.0 17.5
Interest expense (income), net (80.6) (85.6) 12.4 7.5
---------------------------------------------------------------------
2,349.2 1,439.1 741.2 624.1
---------------------------------------------------------------------
Income before special
items, income taxes
and goodwill amortization $104.2 $76.7 $47.6 $21.2
---------------------------------------------------------------------
Special items
---------------------------------------------------------------------
Income before income
taxes and goodwill amortization
---------------------------------------------------------------------
Additions to fixed
assets (excluding
business acquisitions) $114.2 $17.7 $66.5 $10.2
---------------------------------------------------------------------
---------------------------------------------------------------------
July January July January
31, 31, 31, 31,
As at 2001 2001 2001 2001
---------------------------------------------------------------------
Net segmented assets $479.3 $(615.9) $374.8 $62.4
Accounts payable and
accrued liabilities
Advances and progress
billings in excess of related
costs
Accrued benefit liability
Advances to BC
Deferred income taxes
Cash and cash equivalents
-------------------------------
Total assets - Bombardier
Investment in and advances to BC
Total assets - BC
-------------------------------
Total assets - Bombardier Inc.
Consolidated
-------------------------------
-------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
SEGMENT DISCLOSURE
(unaudited)
For the six months ended July 31
(millions of Canadian dollars)
Industry segments BC
---------------------------------------------------------------------
---------------------------------------------------------------------
2001 2000
---------------------------------------------------------------------
External revenues $383.2 $381.1
Intersegment eliminations 139.0 86.1
---------------------------------------------------------------------
Revenues $522.2 $467.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Expenses
Cost of sales and operating expenses $516.2 $423.1
Depreciation and amortization (1) 6.0 4.9
Interest expense (income), net - 17.6
---------------------------------------------------------------------
522.2 445.6
---------------------------------------------------------------------
Income before special items,
income taxes and goodwill amortization $- $21.6
---------------------------------------------------------------------
Special items
---------------------------------------------------------------------
Income before income
taxes and goodwill amortization
---------------------------------------------------------------------
---------------------------------------------------------------------
Additions to fixed assets
(excluding business acquisitions) $26.7 $6.3
---------------------------------------------------------------------
---------------------------------------------------------------------
July January
31, 31,
As at 2001 2001
---------------------------------------------------------------------
Net segmented assets $1,394.3 $1,376.0
Accounts payable and
accrued liabilities
Advances and progress
billings in excess of related
costs
Accrued benefit liability
Advances to BC
Deferred income taxes
Cash and cash equivalents
-------------------------------
Total assets - Bombardier
Investment in and advances to BC
Total assets - BC
-------------------------------
Total assets - Bombardier Inc.
Consolidated
-------------------------------
-------------------------------
(1) BC's depreciation expense is mostly presented against rental
income from assets under operating leases.
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