Canadian transport multinational Bombardier has reported a 3% growth in revenue in the second quarter of 2018, thanks to an 11% boost from its rail division.
Bombardier Transportation, the division of the company which designs and manufactures rollingstock and signalling technology, reported US$2.26 billion in revenue in the three months ending June 30, 2018, up from US$2.04 billion in the same period last year.
This translated to a US$163 million EBIT figure, up significantly from the $10 million figure reported after the second quarter last year.
Bombardier Transportation reported a book-to-bill ratio of 1.1 (down from 1.3), and an order backlog of US$34.0 billion, down from US$35.1 billion this time last year.
Bombardier won a A$77 million deal to provide 10 years of ongoing services for the Melbourne Metro Tunnel’s new rail control system, and the company’s quarterly report referenced Australia as a positive market.
“Asia-Pacific is foreseen to bring further opportunities during the second half of the year,” the company said.
“Further investments are anticipated for urban transit solutions in China, South Korea, Singapore and India, while in Thailand and Australia medium size contracts are to be awarded for mainline mobility solutions.
“Additionally, significant contracts are expected to be awarded in the services and signalling segments across the vast majority of countries in the Asia-Pacific region with the most significant in China, Thailand and Australia.”
The solid quarter for Transportation made up for a 6% decline in revenue for Bombardier’s Business Aircraft division, and a 2% drop for its Commercial Aircraft division. The company’s smallest division by revenue, Aerostructures and Engineering Services, saw a 3% revenue increase.
Bombardier president and chief executive officer Alain Bellemare said the company’s overall 3% revenue growth to US$4.3 billion was evidence of its solid progress positioning itself for the future.
“With our heavy investment cycle largely behind us, our focus is now on ramping-up production and improving operational efficiency to accelerate growth,” Bellemare said. “You can see this in our solid second quarter results.”