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Bombardier Q4 Profit Plunges On Charges, Revenue Rises

Canadian Aerospace and transportation company Bombardier, Inc. (BBD_A.TO,BBD_B.TO: Quote) reported Thursday a profit for the fourth quarter that plunged from last year, hurt by restructuring charges and lower transportation revenues. The company noted that year-ago fourth quarter results comprised of two months of Bombardier Aerospace's results and three months of Bombardier Transportation's results.

The Montreal, Canada-based company reported net income of $14 million or breakeven per share for the fourth quarter, sharply lower than $214 million or $0.12 per share in the prior-year quarter.

A restructuring charge of $119 million was incurred in the fourth quarter. Excluding items, adjusted net income for the quarter was $188 million or $0.10 per share, compared to $227 million or $0.13 per share in the year-ago quarter.

Revenues for the quarter grew to $4.76 billion from $4.32 billion in the same quarter last year. Bombardier Aerospace revenues grew to $2.6 billion from last year's $2.0 billion. Bombardier Aerospace's backlog increased 38 percent to $32.9 billion at the end of the quarter, from $23.9 billion at the end of the year-ago quarter.

The company delivered a total of 77 aircraft during the quarter, compared to 60 in the year-ago two-month period. Bombardier business aircraft order intake was 124 net orders, compared to 41 last year. Bombardier Commercial Aircraft received 60 firm orders, compared to just 2 last year.

In Bombardier Transportation, revenues declined to $2.2 billion from $2.3 billion last year. The order backlog stood at a record $33.7 billion at the end of the quarter, compared to $31.9 billion at the end of the year-ago quarter.

The company said the group also announced measures to improve its competitiveness and cost structure, including closure of a plant in Aachen, Germany, and the reduction of direct and indirect personnel by about 1,200 employees worldwide.

The company's consolidated backlog stood at a record of $66.6 billion at the end of the quarter, up 19 percent from $55.8 billion at the end of the year-ago quarter.

The company also declared a quarterly dividend of C$0.025 per share on Class A Shares and of C$0.025 per share on Class B Shares, both payable on March 31 to shareholders of record as on March 15, 2013.

Looking ahead, the company said Bombardier Aerospace expects to deliver about 190 business and 55 commercial aircraft in 2013.

The company noted that fiscal 2011 results comprised of 11 months of Bombardier Aerospace's results and 12 months of Bombardier Transportation's results.

For fiscal 2012, the company reported net income of $598 million or $0.32 per share, lower than $837 million or $0.47 per share in the prior year. Excluding items, adjusted net income for the year was $692 million or $0.38 per share, compared to $865 million or $0.48 per share in the year ago. Revenues for the full year declined to $16.77 billion from $18.35 billion in the previous year.

Looking ahead, the company said Bombardier Aerospace expects to deliver about 190 business and 55 commercial aircraft in 2013.

BBD-B.TO closed Wednesday's trading on the TSX at C$4.28, up C$0.17 or 4.14 percent on a volume of 14.15 million shares, and BBD-A.TO closed at C$4.29, up C$0.16 or 3.87 percent on a volume of 0.10 million shares.

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by RTT Staff Writer

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