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Colliers Bolsters Occupier Services Team With New Global Leader

Scott Nelson appointed CEO, Occupier Services | Global

TORONTO, Aug. 01, 2019 (GLOBE NEWSWIRE) — Leading global commercial real estate services and investment management firm, Colliers International Group Inc. (NASDAQ and TSX: CIGI) today announced the appointment of Scott Nelson to CEO, Occupier Services | Global, effective immediately. In this new role, Scott will focus on driving greater consistency and enabling better service to our clients, while significantly growing the number of multi-market transaction and project engagements across our global platform. Further, he will facilitate seamless delivery of additional services by leveraging best practices in global and regional advisory, lease administration and execution with technology-enhanced decision-making support tools and information.

“With his experience and success in growing our Americas business, Scott was the obvious choice for the new global leadership role. I am confident he will take this important business for Colliers to the next level, while driving exceptional results for clients across our global platform,” said John Friedrichsen, CFO | Global. “With strong, established Occupier Services teams across the business, we have a great opportunity to bring more consistency, increase collaboration, leverage best practices and optimize our global platform to accelerate success for our clients and people.”

Since joining Colliers in 2009 as President, Occupier Services | Americas, Scott has developed and steadily grown the business organically year-over-year. Under his leadership, with the efforts of hundreds of advisors and dedicated support staff, Colliers continues to attract regional and global occupier clients, including Corporate Solutions engagements, by adding real value through enterprising, client-focused services and industry-leading technologies such as Colliers360. Today, Colliers serves many of the world’s best known and well-respected brands, as well as challenger and fast growth companies.

“I am so proud of the growth in our business during my 10 years at Colliers and excited to have earned the opportunity to take on this important global leadership role in Occupier Services,” said Scott Nelson, CEO Occupier Services | Global. “I will leverage my experience and focus my energy, working alongside an exceptional team of professionals, to grow and meaningfully differentiate our business while delivering enduring value to clients from the most agile advisory services platform in the industry.”

“This move is a natural step forward in realizing the potential of Colliers’ global capabilities, placing accountability in the hands of a proven performer who has the passion to lead a talented group of enterprising professionals focused on service excellence and collaboration to achieve exceptional client outcomes,” said Jay Hennick, Global Chairman & CEO.

About Colliers International

Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company.  With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning approximately 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.

COMPANY CONTACT:

John B. Friedrichsen
Chief Financial Officer | Global

(416) 960-9500

Synchronoss Teams with Arrow to deliver end-to-end smart building solution worldwide

BRIDGEWATER, N.J., Aug. 01, 2019 (GLOBE NEWSWIRE) — Synchronoss Technologies, Inc. (NASDAQ: SNCR), a global leader and innovator of cloud, messaging, digital and IoT products, today announced an agreement with Arrow Electronics to develop and bring to market a new end-to-end IoT smart building solution. Intended for use by telecom operators, service providers and system integrators, the solution will allow users to remotely monitor and manage key automated on-premise features and systems, including heating, ventilation and air conditioning (HVAC); lighting; security; maintenance; and energy consumption.

The joint solution will incorporate the Synchronoss Smart Buildings Platform, which brings together data from disparate in-building systems and sensors into a single, unified dashboard. The Synchronoss platform aggregates and analyses the data in real-time to uncover new insights and provide recommendations to solve problems, improve operational performance and reduce running costs for buildings. This will combine with Arrow’s own expertise in creating and configuring hardware-based in-building management systems to provide a single, integrated package which telecom operators, system integrators and other service providers can offer to large multi-national companies and organizations to remotely manage their premises’ on-site automated features.

Unlike other smart building products, the Synchronoss-Arrow joint solution is truly global in its scale and scope. Current IoT-based smart building management systems depend on regional integration partners that cannot provide the international reach and connectivity needed by multi-national organizations with multiple premises around the world. The scalability of the Synchronoss-Arrow solution means global brands and organizations can use it to remotely manage and monitor their offices and facilities in multiple locations worldwide.

David Haight, President and General Manager for Global Partnerships at Synchronoss, said, “Today’s smart building IoT solutions are too often siloed, inflexible one-off systems that are only designed to support individual automated features and functions, and which can’t integrate properly with one another. This new solution from Synchronoss and Arrow solves this pressing issue by aggregating disparate systems into a single interface. It also allows us to access new and important international markets in the United States, Europe and the Asia-Pacific region.”

About Synchronoss Technologies, Inc.

Synchronoss (NASDAQ: SNCR) transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products and platforms supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships and talented people change the way TMT customers grow their businesses. For more information, visit us at www.synchronoss.com.

Investors:
ICR
Joseph Crivelli,  +1 610.299.6700
Joe.Crivelli@Synchronoss.com

Media Contact:
Anais Merlin
CCgroup (International)
T: +44 20 3824 9200
E: synchronoss@ccgrouppr.com

Diane Rose
CCgroup (North America)
T: +1 727.238.7567
E: diane@ccgrouppr.com

2019 SECOND QUARTER RESULTS

The following is an extract from the “CNH Industrial 2019 second quarter results” press release. The complete press release can be accessed by visiting the media section of the CNH Industrial corporate website: cnhindustrial.com/en-us/media/press_releases/ or consulting the accompanying PDF:

For the second quarter of 2019 CNH Industrial reported a robust net income of $427 million,
or $0.31 per share, on consolidated revenues of $7.6 billion.
Net debt of Industrial Activities at $1.5 billion

Financial results presented under U.S. GAAP

  • Industrial Activities net sales were $7.1 billion, down 7% compared to the second quarter of 2018 (down 2% on a constant currency basis), with positive price realization more than offset by lower sales volume and negative currency translation impact
  • Adjusted EBIT of Industrial Activities was $527 million, with a 7.5% margin, flat compared to the second quarter of 2018. Adjusted EBITDA of Industrial Activities was $768 million, with a 10.9% margin
  • Adjusted net income was $430 million in the second quarter of 2019, with adjusted diluted EPS of $0.31, up 11% compared to the second quarter of 2018
  • Net debt of Industrial Activities at June 30, 2019 was $1.5 billion, in line with March 31, 2019
  • On July 2, Fitch Ratings improved the outlook of CNH Industrial N.V. to positive from stable and affirmed CNH Industrial N.V.’s and CNH Industrial Capital LLC’s long-term issuer default rating at “BBB-”
  • On July 3, CNH Industrial Finance Europe S.A. issued €500 million in principal amount of 1.625% notes due 2029 and guaranteed by CNH Industrial N.V.
  • Full year guidance at: net sales of Industrial Activities expected between $27 and $27.5 billion, adjusted diluted EPS between $0.84 and $0.88, and net debt of Industrial Activities between $0.4 billion and $0.2 billion

Attachment

2019 SECOND QUARTER RESULTS

The following is an extract from the “CNH Industrial 2019 second quarter results” press release. The complete press release can be accessed by visiting the media section of the CNH Industrial corporate website: cnhindustrial.com/en-us/media/press_releases/ or consulting the accompanying PDF:

For the second quarter of 2019 CNH Industrial reported a robust net income of $427 million,
or $0.31 per share, on consolidated revenues of $7.6 billion.
Net debt of Industrial Activities at $1.5 billion

Financial results presented under U.S. GAAP

  • Industrial Activities net sales were $7.1 billion, down 7% compared to the second quarter of 2018 (down 2% on a constant currency basis), with positive price realization more than offset by lower sales volume and negative currency translation impact
  • Adjusted EBIT of Industrial Activities was $527 million, with a 7.5% margin, flat compared to the second quarter of 2018. Adjusted EBITDA of Industrial Activities was $768 million, with a 10.9% margin
  • Adjusted net income was $430 million in the second quarter of 2019, with adjusted diluted EPS of $0.31, up 11% compared to the second quarter of 2018
  • Net debt of Industrial Activities at June 30, 2019 was $1.5 billion, in line with March 31, 2019
  • On July 2, Fitch Ratings improved the outlook of CNH Industrial N.V. to positive from stable and affirmed CNH Industrial N.V.’s and CNH Industrial Capital LLC’s long-term issuer default rating at “BBB-”
  • On July 3, CNH Industrial Finance Europe S.A. issued €500 million in principal amount of 1.625% notes due 2029 and guaranteed by CNH Industrial N.V.
  • Full year guidance at: net sales of Industrial Activities expected between $27 and $27.5 billion, adjusted diluted EPS between $0.84 and $0.88, and net debt of Industrial Activities between $0.4 billion and $0.2 billion

Attachment

Lawrence Wong from The Story of Yanxi Palace Becomes Official Trip.com Spokesperson to Singapore and Malaysia

SINGAPORE, Aug. 01, 2019 (GLOBE NEWSWIRE) — Trip.com, an independent international brand and part of Ctrip Group, the largest online travel agent in Asia and the second largest in the world, has officially announced that Lawrence Wong will be Trip.com’s first spokesperson in Singapore and Malaysia.

Lawrence Wong spokesperson for Trip.com in Singapore and Malaysia

Starting from August 2019, Lawrence Wong will appear in advertisements for Trip.com on buses, subway stations, as well as on branded websites and mobile apps. Buses linking Singapore and Malaysia’s Johor featuring Lawrence’s image will resume from the 8th of August. The first of its kind, Trip.com aims to make all aspect of users’ trip convenient and seamless.

Edmund Weng, General Manager of Trip.com in Singapore and Malaysia said, “We are excited to have Lawrence Wong as our spokesperson. His energy and boyish charm make him the perfect fit to represent Trip.com. We are excited that he has decided to take a trip with Trip.com as part of his journey to trace his roots. This will be filmed in a Trip.com advertorial.”

Lawrence Wong spokesperson for Trip.com in Singapore and Malaysia

Frequently commuting between Singapore and China, two of Trip.com’s key markets, the charismatic, charming and popular Singaporean actor, who shot to fame after playing the role of kind-hearted imperial guard Hai Lancha in the popular Chinese period drama The Story of Yanxi Palace, is the perfect ambassador for Trip.com.

PHOTO: Lawrence Wong is the official spokesperson for Trip.com in Singapore and Malaysia

https://www.globenewswire.com/NewsRoom/AttachmentNg/f557ab9f-f48d-4939-8488-7b33c9eaa9f1

https://www.globenewswire.com/NewsRoom/AttachmentNg/04a8e8de-103a-4648-b80a-ad0412a0dfa6

Affectionately dubbed Hai Lancha by his fans, in reference to his stellar performance in The Story of Yanxi Palace, Lawrence has also recently appeared as Yang Dingyi in the recent Channel 8 hit drama My One In A Million. Aside his acting career, Lawrence Wong is also a star in the fashion industry. Loved by the fashion community and with strong social media presence, he has graced the cover of many fashion magazines, including Men’s Uno Malaysia, The Man Asia, U Weekly, August Man, and Nuyou Singapore, among others.

Lawrence Wong said, “Everyone around me knows that I love travelling and that I used to go on mandatory backpack trips at least twice a year to various less-travelled destinations! Travelling around to see the world and experiencing life in different cultures allows me to grow and recharge. Even now when I’m so busy with my career, I’ll still make it a point to at least do short getaways around nearby destinations. A journey of a thousand miles must begin with a single step. I feel incredibly lucky and excited to be part of the Trip.com family. Together, I hope we can inspire the wanderlust in you to take some time off, see the world and be awed by its beauty.”

Trip.com in Singapore has been seeing triple digit growth for both flights and hotels. The platform has consistently made waves in both the Singaporean and Malaysian markets as a result of its innovative brand marketing and promotions of Trip.com’s products and services. With 24/7 customer service capabilities in 19 languages available through both Trip.com’s website and mobile app, Trip.com offers comprehensive travel products and services to millions of members worldwide. With a huge inventory of over 1.2 million accommodation listings, 2 million individual flight routes as well as guides to local attractions and things to do, our aim is to provide all our users with a hassle-free travel experience.

About Trip.com

Trip.com provides one-stop travel booking services in 19 languages through our website and mobile app. We are a part of the Ctrip Group, a NASDAQ listed company since 2003 (NASDAQ: CTRP) with over 30,000 employees and over 300 million members, making it one of the leading online travel agencies in the world.

With more than 1.2 million hotels in 200 countries and regions, we’ve built an extensive hotel network to give our customers a fantastic choice of accommodation. Our far-reaching flight network has over 2 million individual flight routes connecting more than 5,000 cities around the globe. When you combine this with our 24/7 English customer service and various other travel products, you can trust us to take care of your next trip.

For further information, please contact:

International PR
Ctrip.com International, ltd.
Tel: (+86) 21 3406 4880 ext 196455
Email: Pr@ctrip.com

Ingredion Incorporated Reports Second Quarter 2019 Results

  • Second quarter 2019 reported and adjusted EPS* were $1.56 and $1.66, respectively, compared with $1.57 and $1.66 in the second quarter 2018, respectively
  • Year-to-date 2019 reported and adjusted EPS were $3.04 and $3.20, respectively, down from $3.47 of reported EPS and down from $3.60 of adjusted EPS in the year-ago period
  • 2019 adjusted EPS expected to be in the range of $6.60-$6.90 reflecting moderate growth in the second half

WESTCHESTER, Ill., Aug. 01, 2019 (GLOBE NEWSWIRE) — Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the second quarter 2019. The results, reported in accordance with U.S. generally accepted accounting principles (“GAAP”) for 2019 and 2018, include items that are excluded from the non-GAAP financial measures that the Company presents.

“During the second quarter, we experienced foreign exchange impacts and rapidly changing raw material markets. Our teams have taken aggressive pricing actions to mitigate foreign exchange impacts. We experienced an increase in the net cost of corn in North America due to continued crop inventory imbalances arising from the U.S./China trade dispute. We are closely monitoring raw material markets and selectively capitalizing on opportunities to partially offset the higher cost of corn,” said Jim Zallie, Ingredion’s president and chief executive officer.

“As a result of the actions we took to accelerate our Cost Smart savings program, we now expect to deliver $30 million to $40 million of 2019 year-end cumulative run-rate savings, an increase from the $24 million to $34 million of savings previously anticipated.”

“Our specialty growth platforms delivered increased net sales in the quarter led primarily by sugar reduction and specialty sweeteners. We are nearing startup of Allulose production at our manufacturing facility in San Juan del Rio, Mexico, which will complement our existing portfolio of specialty sweeteners. In addition, we progressed our plant-based proteins growth strategy and are actively filling our customer pipeline with anticipated sales in the second half of the year. We have also expanded our relationship with Verdient Foods to increase the capacity to produce food-grade, higher-value specialty pulse-based flours and concentrates.”

“We expect modest growth in the second half of the year. However, due to the recent increase in corn costs, our expectation for net corn costs in the second half in North America is higher. Our adjusted EPS guidance for 2019 is now in the range of $6.60-$6.90,” added Zallie.

*Adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate and adjusted cash flow from operations are non-GAAP financial measures. See section II of the Supplemental Financial Information entitled “Non-GAAP Information” following the Condensed Consolidated Financial Statements included in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures.

Diluted Earnings Per Share (EPS)
2Q18 2Q19 YTD18 YTD19
Reported EPS $1.57 $1.56 $3.47 $3.04
Income Tax Settlement $0.02 $0.02
Impairment/Restructuring Costs $0.07 $0.10 $0.11 $0.15
Acquisition/Integration Costs $0.01
Adjusted EPS** $1.66 $1.66 $3.60 $3.20

**Totals may not foot due to rounding

Estimated factors affecting change in reported and adjusted EPS
2Q19 YTD19
Margin (0.09) (0.26)
Volume (0.01) (0.02)
Foreign exchange (0.13) (0.28)
Other income 0.01 (0.02)
Total operating items (0.22) (0.58)
Other non-operating income (0.02)
Financing costs 0.08 0.03
Shares outstanding 0.12 0.25
Tax rate 0.02 (0.09)
Non-controlling interest 0.01
Total non-operating items 0.22 0.18
Total items affecting EPS (0.40)


Financial Highlights

  • At June 30, 2019, total debt and cash and short-term investments were $2.1 billion and $301 million, respectively, versus $2.1 billion and $334 million, respectively, at December 31, 2018. The decrease in cash and short-term investments was primarily due to the timing of changes in working capital and recent acquisitions and investments.
  • Net financing costs were $16 million, or $9 million lower in the second quarter from the year-ago period. This decrease resulted from foreign exchange gains lapping losses in the same quarter from the year-ago period, partially offset by higher net interest expense due to higher debt balances.
  • Reported and adjusted effective tax rates for the quarter were each 29.6 percent compared to reported and adjusted effective tax rates of 31.4 percent and 30.5 percent, respectively, from the year-ago period. The decrease in reported and adjusted rates resulted from the relative lower valuation of the Mexican peso impacting the U.S. dollar denominated balances in Mexico. This was partially offset by a change in earnings mix and other factors.
  • Second quarter capital expenditures were $156 million, down $4 million from the year-ago period.
  • Cost Smart is now expected to deliver $30 million to $40 million of 2019 year-end cumulative run-rate savings, higher than the previously stated $24 million to $34 million target. Cost Smart is achieving structural cost savings by aligning people and processes to improve effectiveness and efficiency across the organization. For example, the Company’s global business service center in Guadalajara, Mexico is now fully operational.

Business Review

Total Ingredion

$ in millions 2018 Net sales FX Impact Volume Price/mix 2019 Net sales % change
Second quarter 1,496 -77 -24 39 1,434 -4%
Year-to-Date 2,965 -171 -57 117 2,854 -4%

Net Sales

  • Second quarter and year-to-date net sales were down from the year-ago period. The decrease in net sales was driven by unfavorable foreign currency impacts and planned Stockton HFCS and industrial starch volume shed, partially offset by favorable price/mix due to pricing actions to mitigate foreign exchange impacts and higher net corn costs.

Operating income

  • Reported and adjusted operating income for the quarter were $168 million and $178 million, respectively, decreases of 13 percent and 11 percent, respectively, from the year-ago period. The decreases were largely attributable to foreign exchange impacts and higher raw material costs, partially offset by improved price/mix.
  • Year-to-date reported and adjusted operating income were $329 million and $344 million, respectively, decreases of 16 percent and 14 percent, respectively, from the year-ago period. The decreases were largely attributable to foreign exchange impacts and higher raw material and production costs, partially offset by improved price/mix.
  • Second quarter reported operating income was lower than adjusted operating income by $10 million due to restructuring costs related to the Cost Smart program and Western Polymer integration costs.

North America

$ in millions 2018 Net sales FX Impact Volume Price/mix 2019 Net sales % change
Second quarter 916 -3 -25 -3 885 -3%
Year-to-Date 1,790 -8 -42 5 1,745 -3%

Operating income

  • Second quarter operating income was $139 million, a decrease of $11 million from the year-ago period. The decrease was driven by higher net corn costs due to lower co-product values and scheduled plant maintenance.
  • Year-to-date operating income was $264 million, a decrease of $29 million from the year-ago period. The decrease was driven by higher net corn costs due to lower co-product values, higher inventory and production costs, and a modest impact from the extreme weather in the U.S. and Canada.

South America

$ in millions 2018 Net sales FX Impact Volume Price/mix 2019 Net sales % change
Second quarter 232 -47 3 27 215 -7%
Year-to-Date 481 -109 -14 75 433 -10%

Operating income

  • Second quarter operating income was $16 million, a decrease of $4 million from the year-ago period. Foreign exchange impacts were partially offset by favorable pricing actions.
  • Year-to-date operating income was $34 million, a decrease of $12 million from the year-ago period. Foreign exchange impacts and lower volumes were partially offset by favorable pricing actions.

Asia-Pacific

$ in millions 2018 Net sales FX Impact Volume Price/mix 2019 Net sales % change
Second quarter 201 -8 -1 3 195 -3%
Year-to-Date 395 -15 -6 15 389 -2%

Operating income

  • Second quarter operating income was $23 million, down $4 million from the year-ago period. Higher corn costs primarily in Korea and foreign exchange impacts across the region were partially offset by specialty volume growth and favorable price/mix.
  • Year-to-date operating income was $43 million, a decrease of $7 million from the year-ago period. Specialty volume growth and improved price/mix were more than offset by higher regional corn costs and foreign exchange impacts.

Europe, Middle East, and Africa (EMEA)

$ in millions 2018 Net sales FX Impact Volume Price/mix 2019 Net sales % change
Second quarter 147 -18 -1 11 139 -5%
Year-to-Date 299 -38 4 22 287 -4%

Operating income

  • Second quarter operating income was $23 million, down $6 million from the year-ago period. Unfavorable foreign exchange impacts across the region, driven primarily by the Pakistan rupee, and higher raw material costs were partially offset by improved price/mix.
  • Year-to-date operating income was $47 million, a decrease of $13 million from a year ago. Unfavorable foreign exchange impacts across the region, driven primarily by the Pakistan rupee, and higher raw material costs were partially offset by specialty volume growth and improved price/mix.

Updated 2019 Outlook

The Company expects 2019 adjusted EPS to be in the range of $6.60-$6.90 compared to adjusted EPS of $6.92 in 2018. This expectation excludes acquisition-related, integration and restructuring costs, as well as any potential impairment costs. Compared with last year, the 2019 full-year outlook is as follows: North America operating income is expected to be down assuming current market conditions for corn and co-products, which have been negatively impacted by unprecedented weather and late crop plantings in the U.S. and continued crop inventory imbalances arising from the U.S./China trade dispute; South America operating income is expected to be flat reflecting macroeconomic challenges; Asia-Pacific operating income is expected to be down driven by foreign exchange rates, increased input costs and anticipated slower customer demand due to the regional impact of trade disputes; EMEA operating income is expected to be down due to foreign exchange, higher raw material cost and uncertainty around Brexit; adjusted effective tax rate is expected to be in the range of approximately 26.5-28.0 percent; and higher-value specialty ingredients are expected to deliver continued growth. The Company expects operating income to be up modestly in the second half of 2019 relative to 2018. Cash from operations is expected to be in the range of $610 million to $660 million. Capital expenditures are anticipated to be between $330 million and $360 million.

Conference Call and Webcast Details
Ingredion will conduct a conference call today at 7:30 a.m. Central Time hosted by Jim Zallie, president and chief executive officer, and James Gray, executive vice president and chief financial officer. The call will be webcast in real time and will include a presentation accessible through the Company’s website at www.ingredion.com. The presentation will be available to download a few hours prior to the start of the call. A replay of the webcast will be available for a limited time at www.ingredion.com.

ABOUT THE COMPANY
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With annual net sales of nearly $6 billion, the company turns grains, fruits, vegetables and other plant materials into value-added ingredients and biomaterial solutions for the food, beverage, paper and corrugating, brewing and other industries. With Ingredion Idea Labs® innovation centers around the world and more than 11,000 employees, the Company develops ingredient solutions to meet consumers’ evolving needs by making crackers crunchy, yogurt creamy, candy sweet, paper stronger, and adding fiber to nutrition bars. For more information, visit ingredion.com.

Forward-Looking Statements
This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements include, among other things, any statements regarding the Company’s future financial condition, earnings, revenues, tax rates, capital expenditures, cash flows, expenses or other financial items, including the Company’s expectations for 2019 adjusted EPS, operating income, adjusted effective tax rate, cash from operations and capital expenditures, any statements concerning the Company’s prospects or future operations, including management’s plans or strategies and objectives therefor, and any assumptions, expectations or beliefs underlying the foregoing.

These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume”, “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “propels,” “opportunities,” “potential,” “provisional” or other similar expressions or the negative thereof. All statements other than statements of historical facts in this release or referred to in this release are “forward-looking statements.”

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and are beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct.

Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various factors, including changing consumption preferences including those relating to high fructose corn syrup; the effects of global economic conditions, including, particularly, economic, currency and political conditions in South America and economic and political conditions in Europe, and their impact on our sales volumes and pricing of our products; our ability to collect our receivables from customers and our ability to raise funds at reasonable rates; future financial performance of major industries which we serve, including, without limitation, the food, beverage, paper and corrugated, and brewing industries; fluctuations in worldwide markets for corn and other commodities, and the associated risks of hedging against such fluctuations; genetic and biotechnology issues; our ability to develop or acquire new products and services at rates or of qualities sufficient to meet expectations; availability of raw materials, including corn, including the impact of recent excess precipitation in the U.S. corn-planting season, potato starch, tapioca, gum Arabic and also the specific varieties of corn upon which some of our products are based; fluctuations in the markets and prices for our co-products, particularly corn oil; fluctuations in aggregate industry supply and market demand; the behavior of financial markets, including foreign currency fluctuations and fluctuations in interest and exchange rates; volatility and turmoil in the capital markets; the commercial and consumer credit environment; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products; energy costs and availability; freight and shipping costs; and changes in regulatory controls regarding quotas; tariffs, duties, taxes and income tax rates, particularly United States tax reform enacted in 2017; operating difficulties; energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses; our ability to achieve budgets and to realize expected synergies; our ability to achieve expected savings under our Cost Smart program; our ability to complete planned maintenance and investment projects successfully and on budget; labor disputes; ; increased competitive and/or customer pressure in the corn-refining industry; and the outbreak or continuation of serious communicable disease or hostilities, including acts of terrorism. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2018 and subsequent reports on Forms 10-Q and 8-K.

CONTACTS:
Investors: Ryan Koller, 708-551-2592
Media: Becca Hary, 708-551-2602

Ingredion Incorporated (“Ingredion”)
Condensed Consolidated Statements of Income
(Unaudited)
 
(in millions, except per share amounts) Three Months Ended
June 30,
Change
%
Six months Ended
June 30,
Change
%
2019 2018 2019 2018
Net sales before shipping and handling costs $ 1,550 $ 1,608 (4%) $ 3,086 $ 3,189 (3%)
Less: shipping and handling costs 116 112 (4%) 232 224
Net sales 1,434 1,496 (4%) 2,854 2,965 (4%)
Cost of sales 1,105 1,136 2,209 2,251
Gross profit 329 360 (9%) 645 714 (10%)
Operating expenses 154 161 (4%) 304 317 (4%)
Other income, net (2 ) (2 ) (1 ) (4 )
Restructuring/impairment charges 9 8 13 11
Operating income 168 193 (13%) 329 390 (16%)
Financing costs, net 16 25 38 41
Other, non-operating income (1 ) (2 )
Income before income taxes 152 169 (10%) 291 351 (17%)
Provision for income taxes 45 53 82 92
Net income 107 116 (8%) 209 259 (19%)
Less: Net income attributable to non-controlling interests 2 2 4 5
Net income attributable to Ingredion $ 105 $ 114 (8%) $ 205 $ 254 (19%)
Earnings per common share attributable to Ingredion
common shareholders:
Weighted average common shares outstanding:
Basic 66.9 71.9 66.9 72.1
Diluted 67.4 72.8 67.4 73.2
Earnings per common share of Ingredion:
Basic $1.57 $1.59 (1%) $3.06 $3.52 (13%)
Diluted $1.56 $1.57 (1%) $3.04 $3.47 (12%)

 

Ingredion Incorporated (“Ingredion”)
Condensed Consolidated Balance Sheets
(in millions, except share and per share amounts) June 30, 2019 December 31, 2018
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 297 $ 327
Short-term investments 4 7
Accounts receivable – net 1,015 951
Inventories 865 824
Prepaid expenses 34 29
Total current assets 2,215 2,138
Property, plant and equipment – net 2,232 2,198
Goodwill 801 791
Other intangible assets – net 451 460
Operating lease assets 143
Deferred income tax assets 10 10
Other assets 146 131
Total assets $ 5,998 $ 5,728
Liabilities and equity
Current liabilities
Short-term borrowings $ 107 $ 169
Accounts payable and accrued liabilities 787 777
Total current liabilities 894 946
Non-current liabilities 211 217
Long-term debt 1,946 1,931
Non-current operating lease liabilities 111
Deferred income tax liabilities 199 189
Share-based payments subject to redemption 25 37
Equity
Ingredion stockholders’ equity:
Preferred stock – authorized 25,000,000 shares – $0.01 par value, none issued
Common stock – authorized 200,000,000 shares – $0.01 par value, 77,810,875
shares issued at June 30, 2019 and December 31, 2018 1 1
Additional paid-in capital 1,138 1,096
Less:  Treasury stock (common stock; 11,090,045 and 11,284,681 shares at
June 30, 2019 and December 31, 2018, respectively) at cost (1,047 ) (1,091 )
Accumulated other comprehensive loss (1,152 ) (1,154 )
Retained earnings 3,656 3,536
Total Ingredion stockholders’ equity 2,596 2,388
Non-controlling interests 16 20
Total equity 2,612 2,408
Total liabilities and equity $ 5,998   $ 5,728

 

Ingredion Incorporated (“Ingredion”)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months Ended June 30,
(in millions) 2019 2018
Cash provided by operating activities:
Net income $ 209 $ 259
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 103 107
Mechanical stores expense 28 29
Deferred income taxes 10 8
Charge for fair value mark-up of acquired inventory
Margin accounts 15 (4 )
Changes in other trade working capital (136 ) (99 )
Other 24 52
Cash provided by operating activities 253   352
Cash used for investing activities:
Capital expenditures and mechanical stores purchases, net of proceeds on disposals (156 ) (160 )
Payments for acquisitions, net of cash acquired of $4 and $-, respectively (42 )
Investment in a non-consolidated affiliate (10 )
Short-term investments 3 3
Other 2
Cash used for investing activities (205 )   (155 )
Cash used for financing activities:
Proceeds from (payments on) borrowings, net (51 ) (188 )
Repurchases of common stock, net 63 (141 )
Issuances of common stock for share-based compensation, net of settlements (3 )
Dividends paid, including to non-controlling interests (87 ) (92 )
Cash used for financing activities (75 )   (424 )
Effect of foreign exchange rate changes on cash (3 ) (9 )
Decrease in cash and cash equivalents (30 ) (236 )
Cash and cash equivalents, beginning of period 327 595
Cash and cash equivalents, end of period $ 297 $ 359

 

Ingredion Incorporated (“Ingredion”)
Supplemental Financial Information
(Unaudited)
I.  Geographic Information of Net Sales and Operating Income
(in millions) Three Months Ended
June 30,
Change Six months Ended
June 30,
Change
2019 2018 % 2019 2018 %
Net Sales
North America $ 885 $ 916 (3%) $ 1,745 $ 1,790 (3%)
South America 215 232 (7%) 433 481 (10%)
Asia Pacific 195 201 (3%) 389 395 (2%)
EMEA 139 147 (5%) 287 299 (4%)
Total Net Sales $ 1,434 $ 1,496 (4%) $ 2,854 $ 2,965 (4%)
Operating Income
North America $ 139 $ 150 (7%) $ 264 $ 293 (10%)
South America 16 20 (20%) 34 46 (26%)
Asia Pacific 23 27 (15%) 43 50 (14%)
EMEA 23 29 (21%) 47 60 (22%)
Corporate (23 ) (25 ) 8% (44 ) (48 ) 8%
Sub-total 178 201 (11%) 344 401 (14%)
Acquisition/integration costs (1 ) (2 )
Restructuring/impairment charges (9 ) (8 ) (13 ) (11 )
Total Operating Income $ 168 $ 193 (13%) $ 329 $ 390 (16%)

 

II.  Non-GAAP Information
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally use the term “adjusted” when referring to these non-GAAP amounts.

Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of our operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies. A reconciliation of each non-GAAP historical financial measure to the most comparable GAAP measure is provided in the tables below.

Ingredion Incorporated (“Ingredion”)
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to 
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(Unaudited)
Three Months Ended Three Months Ended Six months Ended Six months Ended
June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018
(in millions) EPS (in millions) EPS (in millions) EPS (in millions) EPS
Net income attributable to Ingredion $ 105 $ 1.56 $ 114 $ 1.57 $ 205 $ 3.04 $ 254 $ 3.47
Add back:
Acquisition/integration costs, net of income tax benefit of $1 million for the three and six months ended June 30, 2019 (i) 1 0.01
Restructuring/impairment charges, net of income tax benefit of $2 million and $3 million for the three and six months ended June 30, 2019, respectively, and $3 million and $3 million for the three and six months ended June 30, 2018 (ii) 7 0.10 5 0.07 10 0.15 8 0.11
Income tax settlement (iii) 2 0.02 2 0.02
Non-GAAP adjusted net income attributable to Ingredion $ 112 $ 1.66 $ 121 $ 1.66 $ 216 $ 3.20 $ 264 $ 3.60
 
Net income, EPS and tax rates may not foot or recalculate due to rounding.
Notes
(i) The 2019 period includes costs related to the acquisition and integration of the business acquired from Western Polymer, LLC.
(ii) During the three and six months ended June 30, 2019, the Company recorded $9 million and $13 million of pre-tax restructuring charges, respectively.  During the second quarter of 2019, the Company recorded $6 million of other costs, including professional services, and employee-related severance in the North America and South America  segments as part of its Cost Smart SG&A program and finance transformation initiative and $3 million of other costs, including professional services, related to its Cost Smart cost of sales program.  During the six months ended June 30, 2019, the $13 million of restructuring charges consisted of $9 million of costs associated with its Cost Smart SG&A program and Finance Transformation initiative and $4 million of costs associated with its Cost Smart cost of sales program.

During the three and six months ended June 30, 2018, the Company recorded an $8 million and $11 million pre-tax restructuring charge, respectively.  During the second quarter of 2018, the Company recorded $6 million of employee-related severance and other costs associated with its Cost Smart program and $2 million of costs associated with the Company’s finance transformation initiative, and $1 million of other costs related to the abandonment of certain assets related to its leaf extraction process in Brazil.

(iii) The Company had been pursuing relief from double taxation under the U.S. and Canadian tax treaty for the years 2004 through 2013.  During the fourth quarter of 2016, the Company recorded a net reserve of $24 million, including interest thereon, recorded as a $70 million liability and a $46 million benefit.  During the third quarter of 2017, an agreement was reached between the two countries for the specific issues being contested.  As a result of that final settlement, during the second quarter of 2018, the Company received a $34 million refund from the CRA and recorded $2 million of interest penalty through tax expense.
II. Non-GAAP Information (continued)
Ingredion Incorporated (“Ingredion”)
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
(in millions, pre-tax) 2019 2018 2019 2018
Operating income $ 168 $ 193 $ 329 $ 390
Add back:
Acquisition/integration costs (i) 1 2
Restructuring/impairment charges (ii) 9 8 13 11
Non-GAAP adjusted operating income $ 178 $ 201 $ 344 $ 401
For notes (i) through (ii) see notes (i) through (ii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

 

II. Non-GAAP Information (continued)
Ingredion Incorporated (“Ingredion”)
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate
(Unaudited)
Three Months Ended June 30, 2019 Six months Ended June 30, 2019
Income before Provision for Effective Income Income before Provision for Effective Income
(in millions) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) Income Taxes (a) Income Taxes (b) Tax Rate (b / a)
As Reported $ 152 $ 45 29.6 % $ 291 $ 82 28.2 %
Add back:
Acquisition/integration costs (i) 1 1 2 1
Restructuring/impairment charges (ii) 9 2 13 3
Adjusted Non-GAAP $ 162 $ 48 29.6 % $ 306 $ 86 28.1 %
Three Months Ended June 30, 2018 Six Ended June 30, 2018
Income before Provision for Effective Income Income before Provision for Effective Income
(in millions) Income Taxes (a) Income Taxes (b) Tax Rate (b / a) Income Taxes (a) Income Taxes (b) Tax Rate (b / a)
As Reported $ 169 $ 53 31.4 % $ 351 $ 92 26.2 %
Add back:
Restructuring/impairment charges (ii) 8 3 11 3
Income tax settlement (iii) (2 ) (2 )
Adjusted Non-GAAP $ 177 $ 54 30.5 % $ 362 $ 93 25.7 %
For notes (i) through (iii) see notes (i) through (iii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

 

II. Non-GAAP Information (continued)
Ingredion Incorporated (“Ingredion”)
Reconciliation of Anticipated GAAP Diluted Earnings per Share (“GAAP EPS”)
to Anticipated Adjusted Diluted Earnings per Share (“Adjusted EPS”)
(Unaudited)
Anticipated EPS Range
for Full Year 2019
Low End High End
GAAP EPS $ 6.24 $ 6.66
Add:
Acquisition/integration costs (iii) 0.03 0.02
Restructuring/impairment charges (iv) 0.33 0.22
Adjusted EPS $ 6.60 $ 6.90
Above is a reconciliation of our anticipated full year 2019 diluted EPS to our anticipated full year 2019 adjusted diluted EPS. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.  These amounts include, but are not limited to, acquisition and integration costs, impairment and restructuring costs, and certain other special items.  We generally exclude these items from our adjusted EPS guidance. For these reasons, we are more confident in our ability to predict adjusted EPS than we are in our ability to predict GAAP EPS.
(iii) Reflects expected costs related to the acquisition and integration of the business acquired from Western Polymer, LLC. and acquisitions to be determined.
(iv) Primarily reflects current estimates for 2019 restructuring charges related to the Cost Smart Cost of Sales & SG&A programs. As specific projects within these programs are approved, the estimates will be reviewed and may be subject to revision.

Bombardier Reports Second Quarter 2019 Results, Revises 2019 Guidance

  • Consolidated revenues of $4.3B, representing 9% organic growth(1), driven mainly by higher aircraft deliveries and aftermarket growth
  • Adjusted EBITDA(2) and adjusted EBIT(2) of $312M and $206M respectively; reported EBIT of $371M, largely driven by gain on the sale of the Q Series program
  • Free cash flow usage(2) of $429M during the quarter and $1.5B year-to-date, in line with target for the first half of 2019, supporting Global 7500 ramp-up and progress on Transportation legacy projects
  • Full year guidance(3) updated to reflect new Aviation reporting segment, largely in line with previous guidance for aerospace segments
  • Announcing $250-$300M of additional investments and costs in 2019 to address late-stage, legacy projects and ensure transformation at Transportation remains on track
  • Consolidated adjusted EBIT for 2019 now expected to be $700-$800M, reflecting reduction of full-year Transportation adjusted EBIT margin(2) to ~ 5.0%
  • Consolidated free cash flow usage for 2019 now expected to be approximately $500M, reflecting the additional investments, costs and timing of project delivery milestones at Transportation

All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.

MONTRÉAL, Aug. 01, 2019 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today reported its second quarter 2019 results and provided updated guidance to reflect both the consolidation of the Company’s aerospace assets into a single reporting segment, Bombardier Aviation, and the additional investments and costs needed to complete late-stage, legacy projects and the transformation at Transportation by the end of 2020.

Organic revenue growth in the second quarter was strong at 9% year-over-year, driven mainly by increased aircraft deliveries, solid aftermarket performance fueled by past investments to expand Business Aircraft’s service network and capabilities, as well as progress across the rail portfolio. In the second quarter, Bombardier also completed the sale of the Q Series aircraft program and announced the sale of the CRJ program to Mitsubishi Heavy Industries. The quarter also marked the one-year anniversary of Bombardier’s partnership with Airbus, which has added close to 300 new orders and commitments to the backlog during this time period.

“We are very happy with our continued momentum in aerospace, where our transformation is progressing ahead of plan,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We have successfully addressed our underperforming commercial aircraft programs and are now fully focused on business aviation, where the ramp-up of Bombardier’s largest growth program, the Global 7500, is proceeding as planned, as are our aftermarket growth strategy and our product portfolio enhancements.”

In 2019, Bombardier will make additional investments and incur additional costs at Transportation, totaling $250 million to $300 million, to both complete the late-stage, legacy projects and protect the delivery schedule for other projects. The investments include adding manufacturing and engineering capacity.

“At Transportation, we have made significant progress and remain on track to complete the transformation by 2020,” Bellemare continued. “As we simultaneously address our legacy projects, complete Transportation’s reshaping to leverage its global scale, and ramp-up to deliver on our strong backlog, we are making the necessary investments to ensure we have the right resources and capacity to deliver stronger, sustainable financial performance in the years ahead.”

Second Quarter 2019 Results

Bombardier’s revenues for the quarter were $4.3 billion. Adjusted EBITDA and adjusted EBIT for the quarter were $312 million and $206 million respectively, mainly driven by a 7.0% adjusted EBIT margin at Business Aircraft while Transportation recorded a 5.1% adjusted EBIT margin. Transportation’s lower margin reflects additional cost pressure mainly on its large, complex legacy projects. On a reported basis, EBIT of $371 million is largely driven by the gain of $219 million on the sale of the Q Series program.

Free cash flow usage was $429 million for the quarter and $1.5 billion year to date, in line with the Company’s expectations for the first half of 2019. Free cash flow performance was solid across aerospace segments, offsetting a softer performance at Transportation. Bombardier also maintained a healthy liquidity position, closing the quarter with $3 billion of cash on hand.

Guidance Update(3)

Starting in the third quarter of 2019, Bombardier’s three existing aerospace units will be consolidated into a single Bombardier Aviation business segment. As a result of this change, and to reflect the additional investments, costs and the timing of project delivery milestones at Transportation, the Company is updating its 2019 guidance as follows.

Previous guidance(4) 2019 guidance update(3)
Revenues Business Aircraft ~ $6.25 billion } Aviation(5)
~ $8.0 billion
Commercial Aircraft ~ $1.15 billion
Aerostructures and Engineering Services $2.25-$2.50 billion
Transportation ~ $8.75 billion ~ $8.75 billion
Consolidated ~ $17.0 billion(6) $16.5-$17.0 billion
Adjusted EBIT and adjusted EBIT margin Business Aircraft ~ 7.5% } Aviation(5)
~ 7.0%
Commercial Aircraft ~ ($125 million)(7)
Aerostructures and Engineering Services ~ 7.5%
Transportation ~ 8.0% ~ 5.0%
Consolidated $1.00-$1.15 billion(6) $700-$800 million
Adjusted EBITDA Consolidated $1.50-$1.65 billion(6) $1.20-$1.30 billion
Free cash flow Consolidated Breakeven +/- $250 million ~ ($500 million)
Aircraft deliveries
(in units)
Business Aircraft 150-155 } Aviation(5)
175-180
Commercial Aircraft ~ 30 CRJ and Q400

SELECTED RESULTS

RESULTS OF THE QUARTER
Three-month periods ended June 30 2019 (8) 2018 Variance
Revenues $ 4,314 $ 4,262 1 %
EBIT $ 371 $ 191 94 %
EBIT margin 8.6 % 4.5 % 410 bps
Adjusted EBIT $ 206 $ 271 (24 )%
Adjusted EBIT margin 4.8 % 6.4 % (160 ) bps
Adjusted EBITDA $ 312 $ 336 (7 )%
Adjusted EBITDA margin(2) 7.2 % 7.9 % (70 ) bps
Net income (loss) $ (36 ) $ 70 nmf
Diluted EPS (in dollars) $ (0.04 ) $ 0.02 $ (0.06 )
Adjusted net income (loss)(2) $ (47 ) $ 87 nmf
Adjusted EPS (in dollars)(2) $ (0.04 ) $ 0.03 $ (0.07 )
Net additions to (disposals of) PP&E and intangible assets $ 140 $ (312 ) nmf
Cash flows from operating activities $ (289 ) $ (80 ) (261 )%
Free cash flow (usage) $ (429 ) $ 232 nmf
As at June 30, 2019 December 31, 2018 Variance
Available short-term capital resources(9) $ 3,646 $ 4,373 (17 )%
Order backlog (in billions of dollars) $ 51.6 $ 53.1 (3 )%

 

RESULTS OF THE SIX-MONTH PERIOD
Six-month periods ended June 30 2019 2018 Variance
Revenues $ 7,830 $ 8,290 (6 ) %
EBIT $ 1,055 $ 392 169 %
EBIT margin 13.5 % 4.7 % 880  bps
Adjusted EBIT $ 377 $ 472 (20 ) %
Adjusted EBIT margin 4.8 % 5.7 % (90 ) bps
Adjusted EBITDA $ 578 $ 601 (4 ) %
Adjusted EBITDA margin 7.4 % 7.2 % 20  bps
Net income $ 203 $ 114 nmf
Diluted EPS (in dollars) $ 0.04 $ 0.04 $
Adjusted net income (loss) $ (169 ) $ 122 (239 ) %
Adjusted EPS (in dollars) $ (0.12 ) $ 0.04 $ (0.16 )
Net additions (proceeds) to PP&E and intangible assets $ 277 $ (62 ) nmf
Cash flows from operating activities $ (1,196 ) $ (551 ) (117 ) %
Free cash flow (usage) $ (1,473 ) $ (489 ) (201 ) %

 

SEGMENTED RESULTS AND HIGHLIGHTS

Business Aircraft

Results of the quarter
Three-month periods ended June 30 2019 2018 Variance
Revenues $ 1,382 $ 1,307 6 %
Aircraft deliveries (in units) 35 34 1
EBIT $ 84 $ 108 (22 )%
EBIT margin 6.1 % 8.3 % (220 ) bps
Adjusted EBIT $ 97 $ 111 (13 )%
Adjusted EBIT margin 7.0 % 8.5 % (150 ) bps
Adjusted EBITDA $ 146 $ 142 3 %
Adjusted EBITDA margin 10.6 % 10.9 % (30 ) bps
Net additions to PP&E and intangible assets $ 97 232 (58 )%
As at June 30, 2019 December 31, 2018
Order backlog (in billions of dollars) $ 15.3 $ 14.3 7 %
  • Revenues increased by 6% year-over-year to $1.4 billion on 35 deliveries, including 2 Global 7500 aircraft.
  • Aftermarket revenues grew 3.6% year-over-year or 11% on a year-to-date basis and reflect the disposal of the aircraft training services earlier in the year. Supporting the aftermarket growth strategy, a new Dubai line maintenance station was announced during the quarter to enhance service capabilities in the Middle East.
  • Backlog increased by $0.4 billion in the quarter and $1.0 billion year-to-date, reaching an industry-leading $15.3 billion and reflecting broad market interest across all regions.
  • Adjusted EBITDA for the quarter was stable year-over-year at $146 million, even as production ramps up on the Global 7500. The adjusted EBIT margin of 7.0% during the quarter is lower against the same quarter last year, mainly as a result of higher amortization associated with Global 7500 deliveries. EBIT margin for the quarter was 6.1%.
  • As the Global 7500 ramp-up progresses on plan and with all 2019 deliveries now in completion stages, the aircraft continues to demonstrate unmatched short runway performance by completing the first ever non-stop flight from London City Airport to Los Angeles.
  • Subsequent to the quarter, Bombardier unveiled the Learjet 75 Liberty. With improved economics, $9.9 million list price and operating cost comparable with its competitors’, the new member of this iconic brand is a step up for Light jet operators, while delivering better performance.

Commercial Aircraft

Results of the quarter
Three-month periods ended June 30 2019 2018 Variance
Revenues(10) $ 516 $ 616 (16 )%
Aircraft deliveries (in units)(11) 17 10 7
Net orders (in units) 1 45 (44 )
Book-to-bill ratio(12) 0.1 4.5 (4.4 )
EBIT(13) $ 226 $ (668 ) 134 %
EBIT margin(13) 43.8 % (108.4 )% nmf
Adjusted EBIT(13) $ 12 $ (66 ) 118 %
Adjusted EBIT margin(13) 2.3 % (10.7 )% 1300  bps
Adjusted EBITDA(13) $ 17 $ (61 ) 128 %
Adjusted EBITDA margin(13) 3.3 % (9.9 )% 1320  bps
Net (disposals of) additions to PP&E and intangible assets $ (2 ) $ 30 nmf
As at June 30, 2019 December 31, 2018
Order backlog (in units)(14) 41 97 (56 )
  • On May 31, 2019, the Corporation completed the previously announced sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), a wholly owned subsidiary of Longview Aviation Capital Corp., for gross proceeds of $298 million.
  • During the quarter, the Corporation entered into a definitive agreement with Mitsubishi Heavy Industries, Ltd (MHI) for the sale of its regional jet program for a cash consideration of $550 million payable upon closing, and the assumption by MHI of liabilities related to credit and residual value guarantees and lease subsidies amounting to approximately $200 million. The CRJ production facility in Mirabel, Québec will remain with Bombardier and will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI, CRJ production is expected to conclude in the second half of 2020. The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
  • Revenues reached $516 million during the quarter on increased deliveries, including 6 Q400 deliveries prior to completion of the Q Series aircraft program sale and 11 CRJ. Year-over-year revenues decrease is due to C Series deliveries included in the comparable for the first half of 2018.
  • Adjusted EBIT of $12 million includes $21 million contribution from commercial aircraft programs, offset by $9 million share of net loss in ACLP. EBIT for the quarter of $226 million is largely driven by the $219 million gain on the sale of the Q Series aircraft program to Longview.

Aerostructures and Engineering Services

Results of the quarter
Three-month periods ended June 30 2019 2018 Variance
Revenues $ 565 $ 455 24 %
EBIT $ 25 $ 65 (62 )%
EBIT margin 4.4 % 14.3 % (990 ) bps
Adjusted EBIT $ 37 $ 57 (35 )%
Adjusted EBIT margin 6.5 % 12.5 % (600 ) bps
Adjusted EBITDA $ 50 $ 69 (28 )%
Adjusted EBITDA margin 8.8 % 15.2 % (640 ) bps
Net additions to (disposals of) PP&E and intangible assets $ 4 $ (1 ) nmf
  • Revenues at Aerostructures and Engineering Services grew 24% year-over-year to $565 million as a result of the ramp up of the Global 7500 and A220 programs.
  • Adjusted EBIT margin for the quarter of 6.5% reflects the ongoing ramp-up of the Global 7500 and A220. EBIT margin for the quarter was 4.4%.
  • The Corporation continues to pursue the divestiture of its Belfast and Morocco aerostructures businesses as it focuses its aerostructures activities around the core capabilities in Montréal, Mexico and the newly acquired Global 7500 wing operations in Texas.

Transportation

Results of the quarter
Three-month periods ended June 30 2019 2018 Variance
Revenues $ 2,194 $ 2,259 (3 )%
Order intake (in billions of dollars) $ 2.0 $ 2.4 (17 )%
Book-to-bill ratio(15) 0.9 1.1 (0.2 )
EBIT(16) $ 87 $ 163 (47 )%
EBIT margin(16) 4.0 % 7.2 % (320 ) bps
Adjusted EBIT(16) $ 111 $ 207 (46 )%
Adjusted EBIT margin(16) 5.1 % 9.2 % (410 ) bps
Adjusted EBITDA(16) $ 146 $ 232 (37 )%
Adjusted EBITDA margin(16) 6.7 % 10.3 % (360 ) bps
Net additions to PP&E and intangible assets $ 36 $ 46 (22 )%
As at June 30, 2019 December 31, 2018
Order backlog (in billions of dollars) $ 33.6 $ 34.5 (3 )%
  • Revenues during the quarter totalled $2.2 billion, delivering 2% growth year-over-year, excluding the unfavourable currency impacts. Revenues year-to-date are in line with the revised production schedule announced earlier in the year and consistent with full year guidance of $8.75 billion.(3)
  • Adjusted EBIT margin for the second quarter of 5.1% was below expectations, reflecting additional cost pressure on large, late-stage projects, mainly in the U.K., Germany and Switzerland. EBIT margin for the quarter was 4.0%.
  • Full-year adjusted EBIT margin guidance is now approximately 5%, mainly as the Corporation makes additional investments and incurs additional costs, totalling $250 million to $300 million, to both complete the legacy projects and to protect the delivery schedule for other projects. These investments include adding engineering and production capacity.(3)
  • Transportation’s backlog of $33.6 billion reflects book-to-bill of 0.9 during the quarter. The positive market outlook for the rail industry remains unchanged.

About Bombardier
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ, Global 7500 and Learjet 75 Liberty are trademarks of Bombardier Inc. or its subsidiaries.

For information

Simon Letendre
Manager, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+514 861 5727

The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.

bps: basis points
nmf: information not meaningful
(1) Excluding currency translation and divestitures.
(2)  Non-GAAP financial measures. See Caution regarding non-GAAP financial measures below.
(3) See the forward-looking statements disclaimer at the end of this press release as well as the forward-looking statements section in Overview and the Guidance and forward-looking statements section in each reportable segment in the Corporation’s 2018 Financial Report for details regarding the assumptions on which the guidance is based.
(4) Refer to the Corporation’s 2018 Financial Report, to its First Quarterly Report for the period ended March 31, 2019, and to the Segment Reporting section of the Corporation’s MD&A for the period ended June 30, 2019 for further details.
(5) Refer to the Segment Reporting section of the Corporation’s MD&A for the period ended June 30, 2019 for further details. The assumptions on which the guidance for the aerospace segments was based continue to apply to the guidance for the Aviation segment.
(6) The previous 2019 consolidated revenue guidance included eliminations in the range of $1.40 billion to $1.65 billion related to Aerostructures and Engineering Services intersegment sales to Business aircraft and Commercial Aircraft. This amount has been included in the new Aviation guidance. The previous 2019 guidance for adjusted EBIT and adjusted EBITDA included eliminations in the range of approximately $20 million to $40 million related to Aerostructures and Engineering Services intersegment sales to Business aircraft and Commercial Aircraft. This amount has also been included in the new Aviation guidance.
(7) The previous 2019 adjusted EBIT guidance for Commercial aircraft included estimated losses of approximately $100 million related to the Corporation’s equity pick-up of ACLP results. Under the new structure, the Corporation’s interest in ACLP will be treated as a corporately held investment and therefore the respective equity pick-up is excluded from the new Aviation guidance.
(8) Refer to Note 2, Changes in accounting policies, in the Corporation’s interim consolidated financial statements for the quarter ended March 31, 2019 for the impact of the adoption of IFRS 16, Leases. Under the modified retrospective approach adopted by the Corporation, 2018 figures are not restated.
(9) Defined as cash and cash equivalents plus the amount available under our revolving credit facilities.
(10) Including revenues from ACLP for the three-month period ended June 30, 2018.
(11)  Excluding 8 CS300 aircraft deliveries from the comparative period of 2018.
(12) Ratio of new orders received over aircraft deliveries, in units, excluding C Series aircraft orders and deliveries for the comparative period of 2018.
(13) Including share of net loss from ACLP for the three-month period ended June 30, 2019 amounting to $9 million.
(14) Excluding 115 and 250 firm orders of CS100 and CS300 aircraft respectively for the comparative period of 2018. Subsequent to the C Series Partnership closing, Airbus rebranded CS100 and CS300 as A220-100 and A220-300, respectively.
(15) Ratio of new orders over revenues.
(16) Including share of income from joint ventures and associates amounting to $32 million for the three-month period ended June 30, 2019 ($32 million for the three-month period ended June 30, 2018).

CAUTION REGARDING NON-GAAP FINANCIAL MEASURES

This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:

Non-GAAP financial measures
Adjusted EBIT EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges and significant impairment charges and reversals.
Adjusted EBITDA Adjusted EBIT, amortization and impairment charges on PP&E and intangible assets.
Adjusted net income (loss) Net income (loss) excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items.
Adjusted EPS EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements.
Free cash flow (usage) Cash flows from operating activities less net additions to PP&E and intangible assets.

Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in the Corporation’s industry may define the above measures differently than the Corporation does. In those cases, it may be difficult to compare the performance of those entities to the Corporation’s based on these similarly-named non-GAAP measures.

Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labelled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT”.

Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS
Management uses adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide readers of the Corporation’s press releases with enhanced understanding of the Corporation’s results and related trends and increase the transparency and clarity of the core results of its business. Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS exclude items that do not reflect the Corporation’s core performance or where their exclusion will assist users in understanding its results for the period. For these reasons, a significant number of readers analyze the Corporation’s results based on these financial measures. Management believes these measures help readers to better analyze results, enabling better comparability of the Corportation’s results from one period to another and with peers.

Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.

Reconciliations of non-GAAP financial measures to the most comparable IFRS financial measures are provided in the tables hereafter, except for the following reconciliation:

  • Adjusted EBIT to EBIT – see the Results of operations tables in the reporting segments and Consolidated results of operations section of the Corporation’s MD&A for the quarter ended June 30, 2019.
Reconciliation of segment to consolidated results
Three-month periods ended June 30 Six-month periods ended June 30
2019 (1) 2018 2019 2018
Revenues
Business Aircraft $ 1,382 $ 1,307 $ 2,352 $ 2,417
Commercial Aircraft 516 616 757 1,079
Aerostructures and Engineering Services 565 455 1,035 901
Transportation 2,194 2,259 4,301 4,614
Corporate and Elimination (343 ) (375 ) (615 ) (721 )
$ 4,314 $ 4,262 $ 7,830 $ 8,290
Adjusted EBIT
Business Aircraft $ 97 $ 111 $ 171 $ 209
Commercial Aircraft 12 (66 ) 34 (139 )
Aerostructures and Engineering Services 37 57 103 104
Transportation 111 207 194 396
Corporate and Elimination (51 ) (38 ) (125 ) (98 )
$ 206 $ 271 $ 377 $ 472
Special Items
Business Aircraft $ 13 $ 3 $ (507 ) $ 4
Commercial Aircraft (214 ) 602 (214 ) 602
Aerostructures and Engineering Services 12 (8 ) 12 (7 )
Transportation 24 44 24 42
Corporate and Elimination (561 ) 7 (561 )
$ (165 ) $ 80 $ (678 ) $ 80
EBIT
Business Aircraft $ 84 $ 108 $ 678 $ 205
Commercial Aircraft 226 (668 ) 248 (741 )
Aerostructures and Engineering Services 25 65 91 111
Transportation 87 163 170 354
Corporate and Elimination (51 ) 523 (132 ) 463
$ 371 $ 191 $ 1,055 $ 392
Reconciliation of adjusted EBITDA to EBIT
Three-month periods ended June 30 Six-month periods ended June 30
2019
2018 2019
2018
EBIT $ 371 $ 191 $ 1,055 $ 392
Amortization 106 64 197 126
Impairment charges on PP&E and intangible assets(2) (4 ) 9 (4 ) 11
Special items excluding impairment charges on PP&E and intangible assets(2) (161 ) 72 (670 ) 72
Adjusted EBITDA $ 312 $ 336 $ 578 $ 601
(1) Refer to Note 2, Changes in accounting policies, in the Corporation’s interim consolidated financial statements for the quarter ended June 30, 2019 for the impact of the adoption of IFRS 16, Leases. Under the modified retrospective approach adopted by the Corporation, 2018 figures are not restated.
(2) Refer to the Consolidated results of operations section in the Corporation’s MD&A for the quarter ended June 30, 2019 for details regarding special items.

 

Reconciliation of adjusted net income to net income (loss) and computation of adjusted EPS

 

Three-month periods ended June 30
2019 2018
(per share) (per share)
Net income (loss) $ (36 ) $ 70
Adjustments to EBIT related to special items(1) (165 ) $ (0.07 ) 80 $ 0.03
Adjustments to net financing expense related to:
Net change in provisions arising from changes in interest rates and net loss (gain) on certain financial instruments 29 0.01 (10 ) 0.00
Accretion on net retirement benefit obligations 15 0.01 15 0.01
Loss on repurchase of long-term debt(1) 4 0.00
Tax impact of special(1) and other adjusting items 106 0.05 (68 ) (0.03 )
Adjusted net income (loss) (47 ) 87
Net income attributable to NCI (47 ) (2 )
Preferred share dividends, including taxes (7 ) (7 )
Adjusted net income (loss) attributable to equity holders of Bombardier Inc. $ (101 ) $ 78
Weighted-average diluted number of common shares (in thousands) 2,375,581 2,552,892
Adjusted EPS (in dollars) $ (0.04 ) $ 0.03
Reconciliation of adjusted net income to net income (loss) and computation of adjusted EPS
Six-month periods ended June 30
2019 2018
(per share) (per share)
Net income $ 203 $ 114
Adjustments to EBIT related to special items(1) (678 ) $ (0.29 ) 80 $ 0.03
Adjustments to net financing expense related to:
Net change in provisions arising from changes in interest rates and net gain on certain financial instruments (50 ) (0.02 ) (36 ) (0.01 )
Accretion on net retirement benefit obligations 33 0.01 34 0.01
Loss on repurchase of long-term debt(1) 84 0.04
Tax impact of special(1) and other adjusting items 239 0.10 (70 ) (0.03 )
Adjusted net income (loss) (169 ) 122
Net income attributable to NCI (91 ) (8 )
Preferred share dividends, including taxes (14 ) (14 )
Adjusted net income (loss) attributable to equity holders of Bombardier Inc. $ (274 ) $ 100
Weighted-average diluted number of common shares (in thousands) 2,375,223 2,475,425
Adjusted EPS (in dollars) $ (0.12 ) $ 0.04
Reconciliation of adjusted EPS to diluted EPS (in dollars)
Three-month periods ended June 30
2019
2018
Diluted EPS $ (0.04 ) $ 0.02
Impact of special(1) and other adjusting items 0.01
Adjusted EPS $ (0.04 ) $ 0.03
Reconciliation of adjusted EPS to diluted EPS (in dollars)
Six-month periods ended June 30
2019
2018
Diluted EPS $ 0.04 $ 0.04
Impact of special(1) and other adjusting items (0.16 )
Adjusted EPS $ (0.12 ) $ 0.04
(1) Refer to the Consolidated results of operations section in the Corporation’s MD&A for the quarter ended June 30, 2019 for details regarding special items.
Reconciliation of free cash flow usage to cash flows from operating activities
Three-month periods ended
June 30

Six-month periods ended
June 30

2019
2018 2019
2018
Cash flows from operating activities $ (289 ) $ (80 ) $ (1,196 ) $ (551 )
Net (additions to) proceeds from PP&E and intangible assets (140 ) 312 (277 ) 62
Free cash flow (usage) $ (429 ) $ 232 $ (1,473 ) $ (489 )

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s, anticipations and guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; growth strategy, including in the business aircraft aftermarket business; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; expectations regarding working capital recovery across late-stage, legacy Transportation projects; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies and restructuring initiatives and anticipated costs, intended benefits and timing thereof; the expected objectives and financial targets underlying our transformation plan and the timing and progress in execution thereof, including the anticipated business transition to growth cycle and cash generation; expectations and objectives regarding debt repayments, expectations and timing regarding an opportunistic redemption of CDPQ’s investment in BT Holdco; intentions and objectives for the Corporation’s programs, assets and operations; the anticipated benefits of the formation of Bombardier Aviation and the expected timing of completion thereof and estimated costs associated therewith; the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco, the anticipated benefits of any divestiture or other transaction resulting therefrom and their expected impact on the Corporation’s operations, infrastructure, opportunities, financial condition, business plan and overall strategy; the funding and liquidity of Airbus Canada Limited Partnership (ACLP); and the expected impact and intended benefits of the Corporation’s partnership with Airbus and investment in ACLP and the realization of intended benefits of the Corporation’s acquisition of Triumph Group Inc. (Triumph)’s Global 7500 wing manufacturing operations and assets. As it relates to the sale of the CRJ aircraft program (the Pending Transaction), this press release also contains forward-looking statements with respect to: the expected terms, conditions, and timing for completion thereof; the respective anticipated proceeds and use thereof and/or consideration therefor, related costs and expenses, as well as the anticipated benefits of such actions and transactions and their expected impact on the Corporation’s guidance and targets; and the fact that closing of these transactions will be conditioned on certain events occurring, including the receipt of necessary regulatory approval.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release in relation to the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco include the following material assumptions: the identification and successful completion of one or more divestiture(s) or other transactions resulting therefrom on commercially satisfactory terms and the realization of the intended benefits therefrom within the anticipated timeframe. The assumptions underlying the forward-looking statements made in this press release in relation to the Pending Transaction discussed herein include the following material assumptions: the satisfaction of all conditions of closing and the successful completion of such strategic actions and transaction within the anticipated timeframe, including receipt of regulatory approvals. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services and Transportation in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”, the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation’s late-stage, legacy projects and the release of working capital therefrom; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; risks associated with our ability to successfully implement and execute our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives, including the formation of Bombardier Aviation; doing business with partners; risks associated with the Corporation’s partnership with Airbus and investment in ACLP; risks associated with the Corporation’s ability to continue with its funding plan of ACLP and to fund, if required, the cash shortfalls; risks associated with our ability to successfully integrate our acquisition of Triumph’s Global 7500 wing manufacturing operations and assets; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

With respect to the formation of Bombardier Aviation discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the expected benefits, costs and timing of the formation of Bombardier Aviation, and the risk it will not be completed within the expected time frame, on the expected parameters, or at all; the realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; the Corporation’s ability to ensure it has the skills, technologies and capabilities to realize the anticipated benefits of organizational changes; and negative effects of the announcement or pendency of the formation of Bombardier Aviation on the market price of the Corporation’s shares and on the financial performance of Bombardier. With respect to the pursuit of a divestiture of the Corporation’s operations in Belfast and Morocco discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to identify and complete any divestiture or other transaction resulting therefrom within the expected time frame, on commercially satisfactory terms or at all; all or part of the intended benefits therefrom not being realized within the anticipated timeframe, or at all; and the incurrence of related costs and expenses; and negative effects of the announcement or pendency of any such divestiture or other transaction. With respect to the Pending Transaction discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to receive or delay in receiving regulatory approvals, or otherwise satisfy the conditions to the completion of the transaction or delay in completing and uncertainty regarding the length of time required to complete such transactions, and the funds and benefits thereof not being available to Bombardier in the time frame anticipated or at all; alternate sources of funding that would be used to replace the anticipated proceeds and savings from such strategic actions and transactions, as the case may be, may not be available when needed, or on desirable terms. Accordingly, there can be no assurance that any divestiture relating to the Corporation’s operations in Belfast and Morocco, or the Pending Transaction will be undertaken or occur, or of the timing or successful completion thereof, or the amount and use of proceeds therefrom, or that the anticipated benefits will be realized in their entirety, in part or at all. There can also be no assurance as to the completion, the form, or the timing of any BT Holdco buy-back. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in the Corporation’s forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.