MONTREAL, QUEBEC -- (MARKET WIRE) -- 05/30/06 -- (All amounts in
this press release are in U.S. dollars unless otherwise
indicated.)
- Consolidated revenues of $3.5 billion
- EBT from continuing operations before special items of $53 million
compared to $42 million last year
- EPS from continuing operations before special items of
$0.02 compared to $0.01 last year
- Cash and cash equivalents of $2.2 billion after debt repayment
of $321 million
- Order backlog remains strong at $32.3 billion

Bombardier today released financial results for the first quarter of fiscal year 2007. Earnings before income taxes (EBT) and special items totalled $53 million for the quarter ended April 30, 2006, compared to $42 million for the last fiscal year. Earnings per share from continuing operations before special items was $0.02, compared to $0.01 for the same period last fiscal year. The overall order backlog is solid at $32.3 billion.

"Our results show steady progress when compared to the first quarter of last year," said Laurent Beaudoin, Chairman of the Board and Chief Executive Officer, Bombardier Inc. "Margins of the Transportation group continue to improve and special charges related to the restructuring are complete as of this quarter. At Aerospace, we ramped up production of some of our business aircraft programs, illustrating the strength of the market. And our regional aircraft team continues to explore new opportunities in the 80- to 100-seat
market," added Mr. Beaudoin. "We continue to face the challenges before us, while focusing on flawless execution and long-term, sustainable growth."

Bombardier Aerospace
Earnings before financing income, financing expense, income taxes (EBIT) and special items reached $55 million, from $52 million for the first quarter of the previous year.

The business aircraft market remains robust with a 23% increase in deliveries during the first quarter. This growth in deliveries was mainly driven by the Learjet and Global families of aircraft.
Significant product improvement milestones were reached on that front during the first quarter, with the entry into service of the Learjet 40 XR premium light jet, as well as the successful first flight of the Learjet 60 XR.

In addition, Bombardier Aerospace received 19 regional aircraft net orders, including an order for six CRJ900 aircraft from Air One of Italy, the newest European operator of the CRJ900 regional jet. The trend toward larger regional jet and turboprop aircraft continues, driven by lower fares, higher fuel prices and increasingly relaxed pilot scope clauses. With its large installed base and the unmatched commonality advantages offered by the CRJ family of aircraft, Bombardier is well positioned to reap the benefits of this trend.

Bombardier Transportation
In a context of lower revenues, Bombardier Transportation improved its EBIT margin before special items from 2.4% for the first quarter of last year to 3% for this quarter.

New order intake continued to be vigorous, reaching $1.7 billion for the quarter. The book-to-bill ratio also remained strong at 1.1. Significant strategic orders were received during the quarter, such as the contract from the Frankfurt Transport Authority to supply 146 FLEXITY Swift high-floor light rail vehicles and the order from the European rolling stock leasing company CBRail for 35 TRAXX locomotives. The order intake for the services segment was also strong both in European and North American markets.

During the first quarter, Bombardier Transportation's restructuring plan, initiated two years ago, has reached completion on schedule. As planned, some 7,700 positions were eliminated and seven manufacturing sites ceased their activities. All charges related to the restructuring initiative were recorded as at April 30, 2006.