Bombardier Inc. T.BBD.A

Expectations BA - Globals 7500

[GuiGau1]

Just as a reminder, before Covid-19, the goal for 2020 was 40 Global 7500

They are actually at 34 with all the Covid going on. 
BA delivers ... good thing for us!

https://www.lesailesduquebec.com/global-7500-des-objectifs-trop-ambitieux/

[Mauserintime945]

Aprs avoir livr seulement 11 Global 7500 en 2019, russir en livrer 40 en 2020 nous parat norme. En fait, Il est difficile de croire que Bombardier russira livrer plus de 30 Global 7500 en 2020

[Mauserintime945]

The plan was to produce 40 Global 7500 by 2020. They have 6 planes less in which equates to a shortfall of over $ 450 million.

[bicente]

Considering the Covid19 pandemic and the shutdown , it is safe to say that the bomber reacted and performed well ... quote=Mauserintime945] The plan was to produce 40 Global 7500 by 2020. They have 6 planes less in which equates to a shortfall of over $ 450 million. [/quote]

[Shamhorish]

exactly, having delivered 34 G7500 up to now in 2020 inspite of the shutdown then and slow down due to the social distancing etc and covid is good news

[johnney]

Is more than good news!

[Angadh18]

Hopefully market focus on EM statement last earnings announcement was 12-14 globals fourth quarter which of assists they met or exceeded

[flamingogold]

Martel pre-warned earlier in the year that covid would hit business jet deliveries by 30%. That would equate to a total output of 28 business jets. With 34 deliveries now they have surpassed their estimate. "Business-jet deliveries across the industry will probably decline about 30 per cent in 2020, Martel said, reiterating an earlier forecast." https://montrealgazette.com/business

[johnney]

He did mention that EM! I figure that it has been cashed in the SP in the last three quarters!

[johnney]

Shamhorish, i hope not that in 2021, they won't be hit with another 30% deiveries less!

[Shamhorish]

johnney, no one know the future or what will happen, except the ones that spread the Covid all over the world, will they stop spreading the virus?, will they spread another kind on the otherhand, due to shut down and covid, bbd expected a drop of 30 - 35% in 2020, on the otherhand according to BA performance, we may be surprised (good surprise) to learn that the actual drop will be less than 25%

[Jim99999]

Business aircraft includes more than just Globals. As of Sept 30, 2020, Business aircraft deliveries total 70 deliveries YTD, compared to 90 at the same time in 2019,  for a decrease of ~ 22% YOY. Jim

[bobismydad]

Wordis out, and heard it several times that thosewith money prefer to fly in private jets

[Shamhorish]

is 22% drop better than expected 30 - 35% drop,,i say yes  some say , NO !!???? bbd was shut down for over a month!!!! then when reopened, must respect social distancing (slower performance) so drop of 20% shows that bbd is working hard and successfully managing business

[Micmar]

Ils sont livre 10 en 30 jours, cest tres encouragent pour 2021.

[PabloLafortune]

We shouldn't be surprised. This division has always been pretty good and EM was the right man for the job.  I've been around a few large companies, you learn to figure out who's good and who's not and you could tell that EM was in his element here. How he is performing thru this COVID crisis reinforces this view.  I also believe the best is yet to come operationally. Its

[BBDB859]

Hey Pablo. The elephant in the room will be taken care of. They have to take care of it. They can't survive otherwise. They went after easy money in the JB market. Now they have to pay it back. They made a lot of mistakes just to survive. But they have to pull themselves out of this situation and do it as fast as they can. The interest to service this JB debt is just killing them. You know

[firstworld]

I cant believe anyone except union funds still own this dog after Airbus announced they will be offering global class business jet solutions...hahaha BBD has no hope. Time to let this money sucking sponge draining 70 hr weeks people's tax dollars die.

[Micmar]

Firstworld I suppose that you have no shares and you don’t like the way we handle our.   Thanks for your advice but we long are ok with ourselves and we will wait a little longer to decide.  So you can post here but we don’t listen to your kind of post.  GLTAL.

[johnney]

Firstworld, you probally don't own any shares! So why don't you go out and bring back the ball!

[flamingogold]

Airbus' announcement is pure PR to offset the huge hit to their bread and butter portfolio of jets. The A220's are just too big for mass business jet deployment. They will sell only a handful per year to uber plutocrats. The sweet spot for mass business jets are smaller and more fuel efficient than the A220's, the likes that BBD sells. You know this is true, you're just using the

[Jim99999]

So what do you think they will do? Here's the situation. Alstom deal will net BBD somewhere between $3-4B. Over the next 24 months, they have $5B in LTD to pay. Operations will barely cover the interest payments, if that. How do you handle this without restructuring? Jim

[Shamhorish]

we hope Eric Martel will get new loans with a much lower interest rate in the rang of (3.25-3.95)  i.e. bring interest payment to be reduced by approx. 50% so, paying about 200-250 millions of inerest /year can be managed by BA

[Jim99999]

Why would a lender offer BBD such low rates? BBD needs more money. The lenders know this. Why would they take less than they could get? The only reason a lender would offer lower rates is if they perceive less risk. Therefore, BBD must offer some form of collateral. They are already using inventories and receivables as collateral for the $1B credit facility. What can they offer to a potential

[Shamhorish]

bbd pay high interest rate on loans obtained many many years ago when average interest rate and bank of canada rates wre 3-4 times of what it is today and at the tmies, there was demands by many others to obtain loans and bbd was in development cycle of C series (was still in design or.... stage), so banks took advantage and later on cdpq took more advantage by sharging 7.75-15% which is higher

[Jim99999]

Shamhorish, you are entitled to your own opinions, but you are not entitled to your own facts. The $2B bonds due in 2027 are at 7.875%. They were issued March 7, 2019, when the BoC overnight target rate was 1.75%. The $1.5B bonds due in 2025 are at 7.5%. They were issued March 13, 2015, when the BoC overnight target rate was 0.75%. The $1B bonds due in 2024 are at 7.5%. The were issued November

[Shamhorish]

jim, i agree with you but all those loans you are talking about, bbd got them when it was considered very risky, so they cgarged high interest yes, last loan os secured by inventory, but when ba shos free or positive cash flow rating will change  yes this is my own opinion, and i beleive Eric Martel (who has proved to be qualfeid CEO) HAS ALREADY NEGOCIATED.......AND READY 

[momocau]

Jim99999, la rponse est facile attend et tu verras.

[Jim99999]

Well, I guess that's one investing approach. Not one I care for, though. At least we won't have long to wait. There is no more kicking the can down the road. What BBD does over the next six months or so (especially with respect to the debt) will determine the future of the company forever, in my opinion. Jim

[johnney]

Momocau, effectivement le temps le dira, je suis entierement daccord avec vous!

[momocau]

We will find out more on February 11, when Martel will tell us the results for the 4 quarters and for the year 2020. I can not wait to see what they will do with the money from the sale of BT and what happens. they will negotiate a new loan. At the moment we can only speculate. I like what I see, Martel does his job very well. We must not forget that he has only been posting for a month. I still

[johnney]

Momacau, i just hope so, that he will put all the amount of BT sale to Alstom, on the their debt!!

[bicente]

Covid has changed many things , and leases are being re-negotiated/ cancelled  , deals are being re-negotiated / cancelled , projects are being re-designed / upgraded or cancelled ... there is nothing stopping the bomber from making better deals with lower interest rates .. the 1Billion obtained with inventory as collateral will be off the books ... all in all the bomber will be in much

[johnney]

Shamhorish, i do beleive this, and 2021, will be a year of challenge, that everyone is waiting for that answer!

[HopefulJuan]

Brings us to the question of should the banks be solely profit motivated? Chartered banks suck $50 B in profits every year from the Canadian economy. After the deal is done there is nothing to show for their services. They are the friend no one needs and a major disruption to the economy. 

[smush74]

Shouldn't that be the question for BBD and the board. Are banks around to lose money? As for their profit aproximately 50% of their profits go to pension funds both private and public, then direct and indirect to shareholders. BBD has its problems but they are not the banks fault.

[HopefulJuan]

Banks are regulated by the Bank of Canada so to receive protection of a charter should mean more than chasing profit. Economic stimulation is an interesting concept. They pay the top people ridculous salaries and the books are cleaned twice before announcing huge gains. Latest twist is loan loss provisions. Wonder what the CRA will say when I include loan loss provisoins on my personal income tax

[smush74]

So you are ok with the high salaries BBD pays its executives and board, but not profitable companies like banks. How have shareholders gained from the company in the last ten years, how many lost their jobs. They took on to many projects, oil tanked, and debt continued to increase.  So when BBD was paying dividends it is ok? Never said dividends exit the economy but rather into

[PabloLafortune]

We can only wish they were solely profit motivated...

[PabloLafortune]

805, If you dive into the #s and compare with some others, they need to improve the EBITDA and I believe EM is working hard on this. The LTD they can get down from BT proceeds and perhaps some other ways (I'm sure they are working on those as well).  It is incomprehensible though how much debt - both long term and other liabilities - they accumulated over the past 7-8 years.  Every

[BBDB859]

Hey Pablo. They had no choice they just kept borrowing. Basically, rob Peter to pay Paul (No pun intended). Or everything would have fallen apart. I hope EM smart enough to use whatever is the remaining equity of the new stand alone appraised value of BA as collateral to get some cheaper funds to pay off long term JB debt. When BA shows it can handle the existing remaining LTdebt of $4.5B (per EM

[clubhouse19]

IMO there is no real way to look at it rather than to take it for granted that Martel knows what he is doing and is constructively taking the steps to turn things around although . I also think at this point , rather than continuing trying to crunch the numbers and go into details of the debt and balance sheet other than deliveries of aircraft, as has kindly been supplied here, it is my thinking

[bicente]

The Cseries caused most of the debt but if we really look at the numbers ( compared to other bulders who developed a clean sheet platform) the bomber did pretty well with the $10 Billion it spent ... most others would have spent $30 B , and that's what it will cost for the next builder who attempts to do it ... The whole Cseries was a dream too hard to bring to market for little bomber , but

[Jim99999]

No, it goes to show how proud and arrogant they are, with absolutely no respect for the people who own 88% of the company. Jim

[bicente]

You could say that also , I won't defend them on that ... most people in their shoes would have found a way to screw the rest of the shareholders and ran off with the cash after bankruptcy ...  I call them tough  because they they had to deal with the our govts  , who refused to let them sell off to the chinese, USA who never stopped pounding on them through Boeing, unions all

[Marte7713]

I can't complitly endorse your post this time but i really hope you are wright! Felice anno nuovo

[flamingogold]

BBD lost the CSeries but out of this program they developed the best in class line of business jets. I would have liked to have the whole pie but unfortunately Boeing f-ed them up only to have Airbus sh-t them out.

[Mauserintime945]

Let’s say that when it comes to research for innovation, design and development Bombardier is a creator, but we mean the above that it is expensive for each Cserie sold.