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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | T.BBD.PR.D | BDRPF | BOMBF | BDRXF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Post by lb1temporaryon May 05, 2022 8:47pm
584 Views
Post# 34660791

Interesting extracts from the Conf. call.

Interesting extracts from the Conf. call. FCFNow returning to free cash flow, I do want to emphasize that if you look at the first quarter's performance again our free cash flow guidance for 2022 of greater than $50 million, we are clearly tracking well to our free cash flow guidance for 2022. We are opting to take a few month to measure the impact of the current global geopolitical and market context to carefully assess the through size of any potential upside. We will look to reassess our free cash flow guidance later this year.

 Business jet utilization  The good news is that the sign are beginning to point to a through step change for our industry versus a limited post-pandemic bump.

FCFMoving to free cash flow, we saw a cash generation of $173 million in the quarter, which was better than originally planned. This cash generation is the result of strong earnings, reduced interest expense, and positive net working capital, where inventory buildup and a decrease in our payables were more than offset by an approximately $500 million increase in customer advances.

7500 marginAnd keep in mind, we have not yet fully reached our EBITDA contribution on the 7500s, we're still working through some aircraft that were sold in the launch phase, and it's sort of not yet at full pricing

Inflation: I...very strong and healthy pricing environment, pricing has actually been a little bit ahead of cost inflation. ....... Our expectation is that pricing and inflation will roughly offset, but here in ’22,

Production increases (2024?)we already communicated that we're thinking of next year being 15% to 20% higher than this year. And we haven't talked about 2024, but with the type of backlog, we are looking at right now let's say that so far ’24 looks good too.

21 Deliveries:  ...clearly, David, it was the plan from the start to have a lower Q1 in terms of number of delivery at 21. And yes, we're ramping up, so it was the plan as we transition from the 350 to the 3500, so there were some adjustment on the line rate ....



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