Bombardier (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today reported its second quarter 2016 results and reaffirmed its full year guidance.  "We continue to make very good progress executing our turnaround plan," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "We delivered on our financial commitments, achieved our program milestones and positioned Bombardier to meet both our full year guidance and 2020 goals." Highlighting the company's recent progress is the C Series entry-into-service and the certification of the CS300 aircraft - the larger version of the C Series. These significant milestones reflect the completion of the C Series' development phase and transition into production ramp-up. As the industry's first clean-sheet designed narrow-body aircraft in nearly 30 years, the C Series offers the best passenger experience, environmental performance and operating costs in the 100- to 150-seat class.  "This was a pivotal quarter for the C Series as both variants are now certified and the program has begun generating revenue," Bellemare continued. "Having firmly placed Bombardier on a path to profitable earnings growth and cash generation, we remain focused on delivering customer and shareholder value by improving productivity, executing flawlessly on our programs and applying a disciplined and proactive approach to our portfolio." Results of the quarter  Three-month periods ended June 30 2016 2015   Revenues $ 4,309 $ 4,620   EBIT $ (251 ) $ 226   EBIT margin (5.8 )% 4.9 % EBIT before special items(1) $ 106 $ 226   EBIT margin before special items(1) 2.5 % 4.9 % EBITDA before special items(1) $ 204 $ 329   EBITDA margin before special items(1) 4.7 % 7.1 % Net income (loss) $ (490 ) $ 125   Diluted EPS (in dollars) $ (0.24 ) $ 0.06   Adjusted net income (loss)(1) $ (83 ) $ 145   Adjusted EPS (in dollars)(1) $ (0.06 ) $ 0.06   Net additions to PP&E and intangible assets $ 332 $ 439   Free cash flow usage(1) $ (490 ) $ (808 )         Results year-to-date Six-month periods ended June 30 2016 2015   Revenues $ 8,223 $ 9,017   EBIT $ (195 ) $ 454   EBIT margin (2.4 )% 5.0 % EBIT before special items $ 236 $ 463   EBIT margin before special items 2.9 % 5.1 % EBITDA before special items $ 423 $ 674   EBITDA margin before special items 5.1 % 7.5 % Net income (loss) $ (628 ) $ 225   Diluted EPS (in dollars) $ (0.32 ) $ 0.11   Adjusted net income (loss) $ (117 ) $ 315   Adjusted EPS (in dollars) $ (0.09 ) $ 0.15   Net additions to PP&E and intangible assets $ 626 $ 818   Free cash flow usage $ (1,240 ) $ (1,553 ) As at June 30, 2016 December 31, 2015   Available short-term capital resources(2) $ 4,355 $ 4,014   All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated. Bombardier reported consolidated revenues of $4.3 billion in the quarter and $8.2 billion for the first six-month period, relative to $4.6 billion and $9.0 billion for the same periods last year, explained for the most part by the planned reduction in business aircraft revenues. EBIT before special items was $106 million and $236 million respectively for the quarter and year-to-date, as margin improvements at Business Aircraft and Transportation were offset by the production ramp-up effect of the C Series, as it entered into service. Improved free cash flow usage for the first six months of the year and the completion of the equity investment by the Government of Québec (through Investissement Québec) have resulted in pro forma liquidity of $4.9 billion as at June 30, 2016. These results place Bombardier on track to meet its full year guidance of revenues between $16.5 billion and $17.5 billion, EBIT between $200 million and $400 million, and free cash flow usage between $1.0 billion and $1.3 billion. SEGMENTED RESULTS AND HIGHLIGHTS Business Aircraft Results of the quarter   Three-month periods ended June 30 2016 2015 Variance   Revenues $ 1,473 $ 1,815 (19 )% Aircraft deliveries (in units) 42 47 (5 ) Net orders (in units) 30 8 22   Book-to-bill ratio(3) 0.7 0.2 0.5   EBIT $ 212 $ 119 78 % EBIT margin 14.4 % 6.6 % 780 bps   EBIT before special items $ 98 $ 119 (18 )% EBIT margin before special items 6.7 % 6.6 % 10 bps   EBITDA before special items $ 146 $ 161 (9 )% EBITDA margin before special items 9.9 % 8.9 % 100 bps   Net additions to PP&E and intangible assets $ 162 $ 177 (8 )% As at June 30, 2016 December 31, 2015   Order backlog (in billions of dollars) $ 17.0 $ 17.2 (1 )% In the first half of 2016, we delivered 73 aircraft and achieved a book-to-bill ratio of 1.0 validating the strategic decisions we took in 2015 to re-align aircraft supply to market demand. We also realized an improved EBIT margin before special items of 6.7% in what continued to be a challenging market environment. As outlined in our latest 10-year forecast, we remain confident in the significant long-term growth potential of the industry primarily driven by wealth creation, globalization of trade and replacement demand.  Commercial Aircraft Results of the quarter   Three-month periods ended June 30 2016 2015 Variance   Revenues $ 764 $ 598 28 % Aircraft deliveries (in units) 27 19 8   Net orders (in units) 159 3 156   Book-to-bill ratio(3) 5.9 0.2 5.7   EBIT $ (586 ) $ (10 ) nmf   EBIT margin (76.7 )% (1.7 )% nmf   EBIT before special items $ (103 ) $ (10 ) nmf   EBIT margin before special items (13.5 )% (1.7 )% nmf   EBITDA before special items $ (90 ) $ 14 nmf   EBITDA margin before special items (11.8 )% 2.3 % nmf   Net additions to PP&E and intangible assets $ 137 $ 239 (43 )% The C Series aircraft program is transitioning from the development phase to the revenue-generating phase, a historic milestone as we bring to market the first clean-sheet designed narrow-body aircraft in nearly 30 years. On June 29, 2016, we delivered the first CS100 aircraft to launch operator Swiss International Air Lines (SWISS). The aircraft achieved successful entry-into-service on July 15, 2016 with its maiden commercial flight taking passengers from Zurich to Paris. Recent significant orders totalling 127 firm orders and 80 options from Delta, Air Canada and airBaltic solidified the C Series aircraft program in the 100- to 150-seat category. These firm orders are valued at $9.9 billion based on list prices. The program entered into service with a firm order backlog above our target of 300 aircraft. In the quarter, we signed a firm order for 10 CRJ900 aircraft with an undisclosed customer. Based on list price, the firm order is valued at $472 million. On June 30, 2016, we closed the $1.0-billion investment by the Government of Québec (through Investissement Québec) in return for a 49.5% equity stake in a newly created limited partnership, the C Series Aircraft Limited Partnership (CSALP). We also received the first $500-million installment and the second $500-million installment is expected on September 1, 2016. Free cash flow usage of approximately $470 million on a year-to-date basis, as we ramp-up production for the C Series aircraft, is on track to our full year target of $1.0 billion. Subsequent to the end of the second quarter, we restructured the purchase agreement signed in 2013 with Ilyushin Finance Co. (IFC), a Moscow-based leasing company, to align with their current market needs. The firm order has been modified from 32 CS300 aircraft and options for an additional 10 CS300aircraft to 20 CS300 aircraft and one Q400 aircraft with options for five additional Q400 aircraft.  Aerostructures and Engineering Services Results of the quarter   Three-month periods ended June 30 2016 2015 Variance   Revenues $ 425 $ 472 (10 )% External order intake $ 105 $ 131 (20 )% External book-to-bill ratio(4) 1.0 1.1 (0.1 ) EBIT $ 69 $ 42 64 % EBIT margin 16.2 % 8.9 % 730 bps   EBIT before special items $ 30 $ 42 (29 )% EBIT margin before special items 7.1 % 8.9 % (180) bps   EBITDA before special items $ 42 $ 55 (24 )% EBITDA margin before special items 9.9 % 11.7 % (180) bps   Net additions to PP&E and intangible assets $ 4 $ 6 (33 )% The level of commercial aircraft intersegment revenue is driven more and more by the C Series aircraft program, as it ramps up towards full production.  Transportation Results of the quarter   Three-month periods ended June 30 2016 2015 Variance   Revenues $ 1,964 $ 2,091 (6 )% Order intake (in billions of dollars) $ 2.1 $ 2.0 5 % Book-to-bill ratio(5) 1.1 1.0 0.1   EBIT $ 87 $ 115 (24 )% EBIT margin 4.4 % 5.5 % (110) bps   EBIT before special items $ 124 $ 115 8 % EBIT margin before special items 6.3 % 5.5 % 80 bps   EBITDA before special items $ 149 $ 139 7 % EBITDA margin before special items 7.6 % 6.6 % 100 bps   Net additions to PP&E and intangible assets $ 29 $ 21 38 % As at June 30, 2016 December 31, 2015   Order backlog (in billions of dollars) $ 29.8 $ 30.4 (2 )% Transportation had a solid quarter as its EBIT margin before special items improved by 80 basis points to 6.3%. Our operational transformation is gaining traction, driven by procurement savings and functional cost optimization. Transportation has won several orders across various regions for established rolling stock platforms in the second quarter of 2016 and, in line with our strategy, increased the share of services contracts in the order backlog.  About Bombardier  Bombardier is the world's leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation. Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America index. In the fiscal year ended December 31, 2015, we posted revenues of $18.2 billion. News and information are available at www.bombardier.com or follow us on Twitter @Bombardier. Bombardier, CRJ, CRJ900, CS100, CS300, C Series, Q400 and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.  The Management's Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com. Reconciliation of segment to consolidated results     Three-month periods ended June 30 Six-month periods ended June 30     2016 2015 2016 2015   Revenues     Business Aircraft $ 1,473 $ 1,815 $ 2,776 $ 3,352     Commercial Aircraft 764 598 1,380 1,271     Aerostructures and Engineering Services 425 472 893 943     Transportation 1,964 2,091 3,844 4,132     Corporate and Elimination (317 ) (356 ) (670 ) (681 )   $ 4,309 $ 4,620 $ 8,223 $ 9,017   EBIT before special items     Business Aircraft $ 98 $ 119 $ 185 $ 226     Commercial Aircraft (103 ) (10 ) (169 ) (20 )   Aerostructures and Engineering Services 30 42 65 83     Transportation 124 115 239 233     Corporate and Elimination (43 ) (40 ) (84 ) (59 )   $ 106 $ 226 $ 236 $ 463   Special Items     Business Aircraft $ (114 ) $ - $ (109 ) $ 11     Commercial Aircraft 483 - 483 (1 )   Aerostructures and Engineering Services (39 ) - (19 ) (1 )   Transportation 37 - 129 -     Corporate and Elimination (10 ) - (53 ) -     $ 357 $ - $ 431 $ 9   EBIT     Business Aircraft $ 212 $ 119 $ 294 $ 215     Commercial Aircraft (586 ) (10 ) (652 ) (19 )   Aerostructures and Engineering Services 69 42 84 84     Transportation 87 115 110 233     Corporate and Elimination (33 ) (40 ) (31 ) (59 )   $ (251 ) $ 226 $ (195 ) $ 454     bps: basis points nmf: information not meaningful (1) Non-GAAP financial measures. See Caution regarding non-GAAP measures at the end of this press release. (2) Defined as cash and cash equivalents plus the amount available under the revolving credit facilities. (3) Defined as net orders received over aircraft deliveries, in units. (4) Defined as new external orders over external revenues. (5) Defined as new orders over revenues. CAUTION REGARDING NON-GAAP MEASURES This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the interim consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our interim financial report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Refer to the Non-GAAP financial measures section in Overview in the Corporation's MD&A for definitions of these metrics and refer below for reconciliations to the most comparable IFRS measures. Reconciliation of EBITDA before special items and EBITDA to EBIT   Three-month periods ended June 30 Six-month periods ended June 30   2016 2015 2016 2015 EBIT $ (251 ) $ 226 $ (195 ) $ 454 Amortization 98 103 187 211 EBITDA (153 ) 329 (8 ) 665 Special items(1) 357 - 431 9 EBITDA before special items $ 204 $ 329 $ 423 $ 674 (1) Refer to the Consolidated results of operations section in the Corporation's MD&A for details regarding special items.     Reconciliation of adjusted net income to net income   Three-month periods ended June 30   2016 2015   (per share) (per share) Net income (loss) $ (490 ) $ 125     Adjustments to EBIT related to special items 357 $ 0.16 - $ -   Adjustments to net financing expense related to:     Interest related to tax litigation 26 0.01 - -   Accretion on net retirement benefit obligations 17 0.01 18 0.00   Net change in provisions arising from changes in interest rates and net loss on certain financial instruments 10 0.00 2 0.00   Tax impact of special and other adjusting items (3 ) 0.00 - - Adjusted net income (loss) $ (83 ) $ 145               Reconciliation of adjusted net income to net income         Six-month periods ended June 30   2016 2015   (per share) (per share) Net income (loss) $ (628 ) $ 225     Adjustments to EBIT related to special items 431 $ 0.19 9 $ 0.00   Adjustments to net financing expense related to:     Accretion on net retirement benefit obligations 34 0.02 37 0.02   Interest related to tax litigation 26 0.01 - -   Net change in provisions arising from changes in interest rates and net loss on certain financial instruments 25 0.01 23 0.01   Transaction costs related to the conversion option embedded in the CDPQ investment 8 0.00 - -   Loss on repurchase of long-term debt - - 22 0.01   Tax impact of special and other adjusting items (13 ) 0.00 (1 ) 0.00 Adjusted net income (loss) $ (117 ) $ 315               Reconciliation of adjusted EPS to diluted EPS (in dollars) Three-month periods ended June 30   2016 2015 Diluted EPS $ (0.24 ) $ 0.06 Impact of special and other adjusting items 0.18 - Adjusted EPS $ (0.06 ) $ 0.06         Reconciliation of adjusted EPS to diluted EPS (in dollars)   Six-month periods ended June 30   2016 2015 Diluted EPS $ (0.32 ) $ 0.11 Impact of special and other adjusting items 0.23 0.04 Adjusted EPS $ (0.09 ) $ 0.15 Reconciliation of free cash flow usage to cash flows from operating activities     Three-month periods ended June 30 Six-month periods ended June 30     2016 2015 2016 2015   Cash flows from operating activities $ (158 ) $ (369 ) $ (614 ) $ (735 ) Net additions to PP&E and intangible assets (332 ) (439 ) (626 ) (818 ) Free cash flow usage $ (490 ) $ (808 ) $ (1,240 ) $ (1,553 ) Reconciliation of pro forma liquidity     June 30, 2016 Cash and cash equivalents $ 3,336 Available revolving credit facilities 1,019 Second installment of the equity investment by the Government of Québec in the C Series aircraft program expected on September 1, 2016 500 Pro forma liquidity $ 4,855