* Company sees revenue growth of more than 30 pct by 2015
* Revenue growth of $10 bln-$16 bln in five-plus years
* Raising dividend is among Bombardier's priorities
* CSeries on track for first flight late June
By Solarina Ho
TORONTO, March 21 Canada's Bombardier Inc
said revenue could nearly double over the next five
years, boosted by its new fleet of business and commercial
aircraft, and that it planned to plow some of the cash into
bigger dividend payments.
The Montreal-based aircraft and rail car builder, which
issued a lackluster 2013 outlook last month, is planning to
deliver the first of its new business Learjets this year and the
its first CSeries commercial aircraft next year.
Bombardier said revenue is expected to grow by more than 30
percent by 2015 and could grow between $10 billion and $16
billion during the next five-plus years. Revenues dropped about
9 percent in 2012 to $16.8 billion.
The expected growth will generate significant cash, Chief
Executive Pierre Beaudoin said at the company's Investor Day in
New York, that was also webcast. Bombardier's top priorities are
to restore its credit rating back to investment grade and to
raise its dividend in line with other industrial companies.
Executives said its aerospace division alone could represent
$8 billion to $12 billion of additional revenue a year.
Bombardier's new CSeries is expected to make 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."
Bombardier, the world's fourth-largest commercial
planemaker, aims to capture 50 percent of the estimated $430
billion market for 100-to-149 seat aircraft market over the next
The jetliner is undergoing crucial ground-testing this
month, Bombardier said.
The company has already secured 14 customers, working toward
a goal of 20 customers by mid-2014, when the jet enters service.
It has 148 firm orders out of its target of 300, excluding a
commitment for 32 CS300 jets by Russia's Ilyushin Finance Co
that is awaiting shareholder approval.
Bombardier, also the world's biggest train maker, expects
stable growth its rail unit in its core markets of Europe and
North America and sees solid growth potential from emerging
markets including China and India.
Executives said the transportation division was well
positioned to win major upcoming orders, after turning in its
worst performance in 10 years in 2012, cutting about 1,200 jobs,
and closing a German plant.