CORRECTED-Bombardier says revenue growth could nearly double in 5 years
(Corrects 2012 revenue in third paragraph to $16.8 billion from $16.8 million)
* Expects revenue growth of more than 30 pct by 2015
* Sees revenue growth of $10 bln-$16 bln in five-plus years
* Restoring investment grade, dividend hike among priorities
By Solarina Ho
TORONTO, March 21 (Reuters) - Canada's Bombardier Inc expects revenue to grow by more than 30 percent by 2015 and potentially nearly double over the next five years, largely due to a fleet of new aircraft, company executives told analysts and investors on Thursday.
The Montreal-based aircraft and rail car builder, which issued a lackluster 2013 outlook last month, is banking on the success of its aerospace division, which will see the first delivery of some of its new business Learjets this year and the first delivery of its new CSeries commercial aircraft next year.
Bombardier, which saw revenues fall about 9 percent in 2012 to $16.8 billion and has been investing heavily in future programs, said revenue could grow between $10 billion and $16 billion during the next five-plus years.
The expected growth will generate significant cash. Key priorities will be to restore the company's credit rating back to investment grade and to raise its dividend in line with other industrial companies, Chief Executive Pierre Beaudoin said via webcast at the company's Investor Day in New York.
Executives said its aerospace division alone could represent $8 billion to $12 billion of additional annual revenue, driven by its CSeries commercial jet program and its Learjet 85 and Global 7000/8000 business jets.
Bombardier's new CSeries is expected to see its first test flight by the end of June. It is the company's largest jetliner and a $3.4 billion challenge to industry leaders Boeing Co and Airbus for the lucrative 100-149 seat, single-aisle market.
"We believe that we are building a plane for a niche that's going to have substantial, substantial revenue opportunity for quite a bit of time," said Guy Hachey, president and chief operating officer of Bombardier Aerospace.
"We are up against obviously very, very large incumbents that are putting a lot of pressure on us...we're just going to have to slug it out until we establish ourselves." (Reporting by Solarina Ho; Editing by Bob Burgdorfer)