(Corrects 2012 revenue in third paragraph to $16.8 billion from
* 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 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,
"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)