Bombardier restores dividend as profits triple
In addition to commuter trains, Bombardier also makes corporate jets, like the Challenger 604, pictured here.(Bombardier)
When Bombardier CEO Laurent Beaudoin announced the cancellation of the company's stock dividend three years ago to conserve cash, he asked shareholders to "be patient". On Wednesday, that dividend was restored as the transportation giant reported a near tripling of its profit.
"These results confirm significant progress made in all of our activities," Beaudoin said, just before handing over the CEO's mantle at the family-controlled company to his son Pierre at the annual meeting in Montreal.
Bombardier made $226 million US (12 cents a share) in the first quarter, compared to $79 million US (four cents a share) a year earlier. Bombardier reports in U.S. dollars.
Revenues rose 21 per cent to $4.8 billion as sales at its rail transportation division jumped more than 40 per cent to $2.4 billion. Revenues at its aerospace division rose five per cent as aircraft deliveries increased from 78 last year to 87 in the most recent quarter.
Bombardier 3-month chartThe order backlog grew slightly to $55.5 billion.
The newly-restored quarterly dividend — 2.5 cents a share — was scrapped in 2005, when the company had been losing money for three straight years.
Bombardier shares jumped 74 cents to $8.90 in TSX trading — a near six-year high for the stock.
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