Bombardier turnaround in sight?

Bombardier, Inc., has announced improved financial performance for the second quarter ended July 31, 2003. At the same time, the company said it has taken another step to improve its liquidity by agreeing in principle to sell the Recreational Products division to a consortium of three investment groups led by the Bombardier family. The sale is expected to close this fall and could provide more than $1 billion net to Bombardier (See details on Page 1.)
Bombardier said it earned $93.2 million, or five cents per share, on sales of $2.8 billion for the quarter. That compares with earnings of $68 million, or four cents per share, on sales of $2.7 billion for the same quarter in 2002.
Income from continuing operations before taxes was $147.3 million for the quarter, more than double the $65 million earned before taxes in the second quarter of 2002.
During conference calls with news media and security analysts and investors, Bombardier executives noted that the company has an overall order backlog of $48.1 billion, closed an equity sale in April for $1.2 billion, sold the Belfast Airport for $77.7 million and is negotiating the sale of several other assets. The company’s recapitalization plan announced in April has generated more than $2.5 billion. All amounts are in Canadian dollars.