Interested to see your comments on the rail. Cant believe they can admit to overstating revenues by potentially up to US$10bn and the media doesn't comment...
Without making any recommendation about the company’s securities, we suggest that anyone interested Bombardier might want to ask the following questions:
The company has liabilities of US$28Bn, what is the realistic value of its assets?
With annual cash finance costs and taxes of US$900m, and management forecasting EBIT of US$850m in 2018, without cost capitalisation the company will still be loss making. When will it turn profitable?
Bombardier talks about an EBIT turnaround, how much of this is due to changing amortisation rates?
What are their forecasts for capital expenditure and capitalised costs over the next three years
Bombardier continues to have negative cashflow, at what point will debt and liabilities stop growing?
Commercial jets, how many would the company need to produce on an annual basis for this project to be profitable and cashflow positive?
Why are their accounting policies so different to Airbus and Embraer?
Why do most of the company’s finance and audit committee members live overseas?
Given the company’s accounting history, why are none of the company’s finance and audit committee members accountants?
What is the criteria used to select people for the finance and audit committee?
How does the Chairman, a family member, justify his pay rising back to levels close to when he was the Managing director?
Why do they talk about revenues at Aerostructures being US$1.5bn, when these revenues vanish on consolidation
The change in revenue recognition would appear to wipeout up to US$10bn of Transportation revenue, when was this booked?
Why did factoring increase so much last year? Was this to avoid breaching covenants at Transportation
?Why did payables rise over US$1.5bn in the 4th quarter??
We think losses rose to US$1.6bn in FY2017 and cashflow usage on a like for liek basis rose to US$1.2bn (not fell to US$0.8bn).
For more info, please email info@buceph.com or visit www.buceph.com
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