- Bombardier (TSX:BBD.B) has posted steady results for the quarter ending March 31, but cautioned that future financials may take a hit
- Total revenue for the quarter was up five per cent to C$5.17 billion, compared to $4.94 billion in 2019
- The company also has a strong liquidity position, with approximately $2.94 billion in cash
- Despite a significant downturn in aviation orders, the implementation of cost cutbacks contributed to the company’s resilience
- Bombardier (BBD.B) is currently down 0.82 per cent to $4.86 per share, with a market cap of $1.28 billion
Bombardier (TSX:BBD.B) has posted steady results for the quarter ending March 31, but cautioned that future financials may take a hit.
The aviation industry has been dealt a significant blow by the outbreak of COVID-19, with widespread travel restrictions leading to many flight operators struggling. However, Bombardier has managed to increase its financial performance in the quarter compared to the same period last year.
Total revenue grew five per cent year-on-year, from C$4.94 billion to $5.17 billion. Of this amount, roughly $2.1 billion came from the company’s aviation sector, while just over $3 billion came from the transportation sector.
This comes despite a significant slowdown in aviation order intake during March, as well as extensive disruptions in its transportation sector related to the shipping and delivery of critical manufacturing parts.
Bombardier said its resilience came from the implementation of sweeping cost-cutting measures designed to preserve cash and ensure a relatively normal level of continued operation.
At the end of the quarter, the company had a strong liquidity position of roughly $4.91 billion.
This is made up of around $2.94 billion in cash, $1.2 billion on its revolving credit facility, and approximately $771 million from the sale of its CRJ program, which is expected to close on June 1 this year.
Éric Martel, President and CEO of Bombardier, said the company has taken the right actions to manage the impact of the COVID-19 pandemic.
“As the crisis unfolded, we acted swiftly to protect the health and safety of our employees and support our customers to the best of our ability.
“We also managed our operations to reduce costs, preserve cash and ensure sufficient liquidity to operate our business as we complete the ongoing divestitures necessary to address our balance sheet,” he added.
Due to the continued uncertainty of the pandemic, Bomardier has not yet released an updated financial outlook for the year, which was withdrawn on March 24.
That said, the company noted that business is expected to hit a low point in the second quarter of 2020, followed by a gradual recovery over the second half of the year.
Bombardier (BBD.B) is currently down 0.82 per cent to $4.86 per share at 11:39am EDT.