Bombardier

Bombardier today released financial results for the second quarter of fiscal year 2008 that show strong performance before the write-off of its investment in Metronet. Earnings before financing income, financing expense and income taxes, from continuing operations (EBIT) before special items, grew by $87 million to reach $213 million. The EBIT margin before special items was 5.3%, compared to 3.6% for the same period last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment) reached $633 million, compared to $146 million for the same period last fiscal year. Cash and cash equivalents totalled $3 billion, compared to $2.6 billion as at January 31, 2007. "Our continued efforts, rigorous management of our cost base and improved execution have generated solid performances from both groups during this second quarter," said Laurent Beaudoin, Chairman of the Board and Chief Executive Officer, Bombardier Inc. "The Aerospace group made good progress in all areas, with increased profitability and high order intake for both regional and business aircraft, raising its backlog to a record level. At Transportation, in addition to a strong improvement in free cash flow, we are seeing new orders from emerging markets such as China, India and Russia, a tribute to the quality and reliability of our products," added Mr. Beaudoin. "Our solid backlog and cash position, as well as diversified product portfolio, form the backbone of our ongoing improvement in profitability."