MIRA INFORM REPORT

 

 

Report No. :

321271

Report Date :

19.05.2015

 

IDENTIFICATION DETAILS

 

Name :

BOMBARDIER INC.

 

 

Registered Office :

800 Bd Rene-Levesque Ouest, Montreal, Quebec H3B 1Y8

 

 

Country :

Canada

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

19.06.1902

 

 

Legal Form :

Public Company

 

 

Line of Business :

Manufactures and Sells Transportation Equipment Worldwide.

 

 

No. of Employees :

65,050 (As of 02-12-2015)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Exist

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.

 

Source : CIA

 


Company Name & address

 

Company name:             BOMBARDIER INC.

 

Address:                       800 Bd Rene-Levesque Ouest, Montreal, Quebec H3B 1Y8 Canada

 

Telephone:                    +1 514-861-9481

 

Fax:                              +1 514-861-2420

 

Website:                       www.bombardier.com

 

Corporate ID#:              8369470

 

State:                           Federal

 

Judicial form:                Public Company (TSX = BBD.B)  

 

Date incorporated:        06-19-1902

 

Stock:                           1,932,013,593 shares issued and outstanding  (as of 05-18-2015)

 

Market value:                 CAD 5,177,796,429=

 

 

Name of manager:         PIERRE BEAUDOUIN

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Bombardier Inc., together with its subsidiaries, manufactures and sells transportation equipment worldwide.

 

The company operates in four segments: Bombardier Business Aircraft, Bombardier Commercial Aircraft, Bombardier Aerostructures and Engineering Services, and Bombardier Transportation.

 

The Bombardier Business Aircraft segment designs, manufactures, and provides aftermarket support for Learjet, Challenger, and Global business jets.

The Bombardier Commercial Aircraft segment designs and manufactures a portfolio of commercial aircraft in the 60- to 149-seat categories, including turboprops, regional jets, and mainline jets, as well as provides aftermarket support services.

 

The Bombardier Aerostructures and Engineering Services segment designs and manufactures aircraft structural components, such as engine nacelles, fuselages, and wings; and provides aftermarket component repair, overhaul, and other engineering services.

The Bombardier Transportation segment designs, manufactures, and supports rail equipment and systems, such as passenger railcars, locomotives, light rail vehicles, and automated people movers. This segment also offers bogies, electric propulsion, control equipment, and maintenance services, as well as complete rail transportation systems and rail control solutions.

 

Staff:    65,050 (as of 02-12-2015)

 

On May 14, 2015, Bombardier announced that it is cutting 1,750 jobs, including 1,000 positions at the company's facility in Montreal. The move will see up to 480 positions affected in Toronto and up to 280 in Belfast. Lower energy prices and political turmoil in such markets as Russia, China and Brazil have sliced into the demand for Bombardier's large business planes, forcing it to reduce production of its Global 5,000/6,000 planes.

 

Operations & branches:

 

At the headquarters, we find the corporate office.

 

The Company maintains several branches in Canada.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

The Company is listed with the Toronto Stock Exchange under symbol BBD.B.

 

Private shareholders include:

- Janine BOMBARDIER

- J.R. Andre BOMBARDIER

- Claire BEAUDOUIN BOMBARDIER

 

Management:

 

Pierre Beaudoin is the President.

He served as the Chief Executive Officer and President of Bombardier Inc. from June 4, 2008 to February 13, 2015.

He served as the President and Chief Operating Officer at Bombardier Aerospace, Inc., an operating unit at Bombardier Inc. from October 16, 2001 to May 12, 2008. He was responsible for all operations and product divisions of Bombardier Aerospace, Inc. He served as an Executive Vice President of Bombardier Inc., from December 13, 2004 to May 2008 and also served as its Member of Office of the President. He served as Office of the President of Bombardier Recreational Products Inc. since December 2004.

He served as the President of Bombardier Business Aircraft from February 2001 to October 2001.

 

Mr. Beaudoin served as the President and Chief Operating Officer of Bombardier Recreational Products from April 1996 to January 2001. He was responsible for the overall operations of Bombardier's six product lines: the marine products, including Sea-Doo watercraft and sport boats, Ski-Doo snowmobiles, Bombardier ATV, Bombardier NV and utility vehicles. In addition, his responsibilities included Bombardier-Rotax. He served as the Head of Bombardier Aerospace, Inc., and served as its President from October 16, 2001 to May 2008.

Mr. Beaudoin joined the Marine Products division of Bombardier in 1985 rising through management positions of increasing responsibilities. Since October 1990, he served as a Vice President of Product Development of the Sea-Doo/Ski-Doo division of Bombardier. From June 1992 to January 1994, he served as an Executive Vice President of the Sea-Doo/ Ski-Doo division of Bombardier of Bombardier and as its President from January 1994 to April 1996. He worked as the Canadian Customer Service Manager for BIC Sport Inc. He has been an Executive Chairman of Bombardier Inc. since February 13, 2015 and as its Director since December 13, 2004. He has been a Director of Power Corporation of Canada since May 10, 2005. He served as a Director of Bombardier Recreational Products Inc. since January 15, 2004.

He serves as a Director of Bombardier Aerospace, Inc.

Mr. Beaudoin studied Business Administration at Brébeuf College and Industrial Relations at McGill University in Montréal.

 

J.R. Andre BOMBARDIER, Jean-Louis FONTAINE, Vice Presidents.

L. Denis DESAUTELS, Laurent BEAUDOUIN, Daniel JOHNSON, Jean C. MONTY,

Carlos E. REPRESAS, Heinrich WEISS, Martha FINN BROOKS, Joanne BISSONETTE,

Sheila FRASER, Patrick PICHETTE, Vikram PANDIT, Alain BELLEMARE, Directors.

 

Pierre ALARY is the CFO.

 

 

Subsidiaries

And partnership:                        Numerous subsidiaries in Canada and worldwide.

 

 

FINANCIALS

 

On attachment:

- 10K 2014

- 1st 10Q 2015

 

 

Currency in
Millions of US Dollars

As of:

Dec 31
2011

Dec 31
2012

Dec 31
2013

Dec 31
2014

TOTAL REVENUES

20,014.9

16,414.0

18,151.0

20,111.0

NET INCOME

913.1

460.0

564.0

-1,260.0

 

Currency in
Millions of US Dollars

As of:

Dec 31
2011

Dec 31
2012

Dec 31
2013

Dec 31
2014

Assets

 

 

 

 

Cash and Equivalents

3,372.0

2,557.0

3,397.0

2,489.0

Short-Term Investments

526.0

443.0

637.0

530.0

TOTAL CASH AND SHORT TERM INVESTMENTS

3,898.0

3,000.0

4,034.0

3,019.0

Accounts Receivable

1,299.0

1,222.0

1,386.0

1,414.0

TOTAL RECEIVABLES

1,408.0

1,311.0

1,492.0

1,538.0

Inventory

7,398.0

7,540.0

8,234.0

7,970.0

TOTAL CURRENT ASSETS

13,263.0

12,531.0

14,386.0

13,119.0

Gross Property Plant and Equipment

4,010.0

4,190.0

4,388.0

4,444.0

Accumulated Depreciation

-2,146.0

-2,257.0

-2,322.0

-2,352.0

NET PROPERTY PLANT AND EQUIPMENT

1,864.0

1,933.0

2,066.0

2,092.0

Goodwill

2,253.0

2,316.0

2,381.0

2,127.0

Long-Term Investments

1,305.0

1,650.0

1,567.0

1,301.0

Deferred Tax Assets, Long Term

1,506.0

1,421.0

1,231.0

875.0

Other Intangibles

3,168.0

4,770.0

6,606.0

6,823.0

Other Long-Term Assets

505.0

554.0

807.0

956.0

TOTAL ASSETS

23,864.0

25,175.0

29,363.0

27,614.0

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

Accounts Payable

2,144.0

2,398.0

2,959.0

3,037.0

Accrued Expenses

641.0

585.0

739.0

690.0

Current Income Taxes Payable

216.0

252.0

368.0

367.0

Other Current Liabilities, Total

4,045.0

3,697.0

3,925.0

4,248.0

Unearned Revenue, Current

4,673.0

4,816.0

5,580.0

5,037.0

TOTAL CURRENT LIABILITIES

11,955.0

11,793.0

13,786.0

13,435.0

Long-Term Debt

4,748.0

5,360.0

6,988.0

7,627.0

Unearned Revenue, Non-Current

1,266.0

1,600.0

1,688.0

1,608.0

Pension & Other Post-Retirement Benefits

3,226.0

2,999.0

2,161.0

2,629.0

Other Non-Current Liabilities

1,998.0

2,166.0

2,291.0

2,260.0

TOTAL LIABILITIES

23,193.0

23,918.0

26,914.0

27,559.0

Common Stock

1,323.0

1,342.0

1,380.0

1,381.0

Retained Earnings

-960.0

-555.0

628.0

-1,510.0

TOTAL COMMON EQUITY

292.0

864.0

2,079.0

-305.0

TOTAL EQUITY

671.0

1,257.0

2,449.0

55.0

TOTAL LIABILITIES AND EQUITY

23,864.0

25,175.0

29,363.0

27,614.0

 

 

Banks:  Royal Bank of Canada

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there are several legal filing pending with the Courts.

 

Secured debts summary:  Numerous

 

 

COMPANY CREDIT HISTORY

 

National Credit Bureaus gave a medium credit risk.

 

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 15 days beyond terms.

 

 

Other comments:

 

The Company is facing serious difficulties and is cutting several thousands of jobs.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 02-24-2015.

The risk is HIGH.

 

 

Our opinion:

 

We suggest you to be careful.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.86

Euro

1

Rs.72.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.