MONTREAL, QUEBEC -- (MARKET WIRE) -- November 29, 2006 -- Bombardier Inc. (TSX: BBD.A)(TSX: BBD.B) (All amounts in this press release are in U.S. dollars unless otherwise indicated.)
- Net income of $74 million, compared to a loss of $9 million last
year
- EPS of $0.04 (EPS from continuing operations of $0.03), compared to
a loss of $0.01 (EPS from continuing operations before special
items of $0.01) last year
- New order intake of $2.8 billion at Bombardier Transportation
- Net orders of 95 aircraft and deliveries of 73 aircraft at
Bombardier Aerospace
- Issuance of 1.9 billion euro ($2.4 billion) of senior notes
completed in November

Bombardier today released financial results for the third quarter of fiscal year 2007 showing improvements in profitability for the Corporation. Net income reached $74 million for the quarter ended October 31, 2006, compared to a loss of $9 million last year. Earnings before income taxes (EBT) from continuing operations amounted to $55 million for the third quarter, compared to $22 million before special items for the same period last year (a loss of $3 million after special items). Earnings per share (EPS) was $0.04 (EPS from continuing operations of $0.03), compared to a loss of $0.01 (EPS from continuing operations before special items of $0.01) for the same period last year. The overall order backlog reached $35 billion, a $3.4 billion increase since year-end.

"At Bombardier Transportation, EBIT margin increased and we had an impressive $2.8 billion in new orders. This is compelling evidence that the group is indeed becoming more efficient and competitive," said Laurent Beaudoin, Chairman of the Board and Chief Executive Officer, Bombardier Inc. "The productivity improvement measures put in place at Bombardier Aerospace should enable the group to better position itself in a challenging environment. While the regional jet market remains tough, the turboprop and business jet segments are showing sustained demand. The overall improvement in Bombardier's profitability indicates that our continued focus on managing costs and sharpening execution are generating positive results," he said.

The Corporation also undertook a comprehensive refinancing plan during the third quarter, which included tender offers of certain notes, a new issue of senior notes, as well as bank line renewals. The 1.9-billion euro issue of senior notes, which successfully closed in November, is one of the largest euro-denominated corporate issues ever completed.

Bombardier Aerospace

Earnings before financing income, financing expense and income taxes (EBIT) totalled $43 million, compared to $31 million for the same period last fiscal year. The EBIT margin also improved reaching 2.3%, compared to 1.7% for the corresponding period last year. The total number of aircraft deliveries remained stable at 73 deliveries, compared to 74 for the same period last fiscal year, despite a labor strike at the Learjet plant in Wichita. The Aerospace group recorded an increase in net orders during the three-month period ended October 31, 2006 with 95 net orders, compared to 53 during the same period last year.

At business aircraft, a healthy order intake of 57 aircraft for the quarter underscores the market's continued strength. During the past quarter, the Challenger 605 aircraft received type certification from Transport Canada (TC), the European Aviation Safety Agency (EASA), and the U.S. Federal Aviation Administration (FAA), and the group delivered the first green Challenger 605 aircraft.

Major restructuring within the U.S. airline industry continues impacting the regional aircraft market for all manufacturers. Bombardier Aerospace proactively adjusted its production schedule by aligning regional aircraft production with demand. The group reduced its production rate of the CRJ700/900 aircraft, while ramping up production of 70-seat Q400 turboprops, which continue to enjoy strong favour within today's cost-sensitive markets.

New orders from Northwest Airlines for 36 CRJ900 aircraft and from My Way Airlines of Italy for 19 CRJ900 aircraft testify to the market's migration toward larger Bombardier regional jets and to the group's determined sales efforts. These contracts, as well as Frontier Airlines' order for 10 Q400 turboprops, are enduring reminders that the group's regional aircraft offer the industry's most compelling economics. Bombardier Aerospace's total order backlog reached $11.6 billion at the end of the third quarter, compared to $10.7 billion at year-end.

Bombardier Transportation

Bombardier Transportation's EBIT improved again this quarter, reaching $62 million from $39 million before special items for the same period last fiscal year. This translates into an EBIT margin of 4% for the third quarter, compared to 2.6% before special items for the same period last year.

Bombardier Transportation's new order intake reached $2.8 billion during the third quarter, resulting in a book-to-bill ratio of 1.8, while the total order backlog stood at $23.4 billion at the end of the third quarter. Ongoing efforts to hone the group's operational competitiveness resulted in the signing of a landmark contract with the Gauteng Provincial Government of South Africa for a rapid rail transit system and a 15-year maintenance agreement, valued at approximately $1.7 billion. Bombardier Transportation was also awarded a significant contract by Transport for London (TfL) for Electrostar electric multiple unit cars, along with a maintenance and services agreement of 7.5 years, valued at approximately $425 million.

In November 2006, Societe Nationale des Chemins de fer Francais (SNCF) reiterated its confidence in Bombardier Transportation by awarding a contract for the supply of new regional trains for its Greater Paris/Ile-de-France suburban network. The initial order includes 172 trains valued at approximately $1.8 billion, with an option for an additional 200 trains valued at approximately $1.7 billion.

Also in November 2006, Bombardier Transportation received an order valued at approximately $605 million for 112 high-capacity trains, AGC type, from the SNCF.