One-third of Bombardier Transportation’s order intake was achieved in the fourth quarter. “Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore metro contract, and North America with airport and mass transit mobility solutions for Phoenix and Los Angeles,” Bombardier says. The division’s order backlog reached $US 34.5bn at the end of 2018.
Services and signalling contracts increased to account for more than 34% of total revenue in 2018. Bombardier says this is due to a growing focus on integrated solutions for customers.
Ebit before special items increased by 2% from $US 738m in 2017 to $US 750m in 2018. Ebit margin before special items dropped from 8.6% to 8.4%. Bombardier Transportation says it expects to increase Ebit margins before special items to about 9% this year.
Ebitda before special items also rose by 2% from $US 836m to $US 851m last year.
Project delays
Bombardier Transportation says it has several legacy projects awaiting system integration and certification, including new EMUs for London Overground’s Barking - Gospel Oak line, LRVs for Innsbruck Transport Authority (IVB), Twindexx trains for Swiss Federal Railways (SBB), and M7 coaches being supplied jointly with Alstom for Belgian National Railways (SNCB). Bombardier says it expects to “substantially complete deliveries on most of these projects” in 2019.
