Revenue down, but profits up, at Bombardier
11/07/2012 11:08 AM
08/08/2014 10:13 AM
Bombardier recorded lower revenue but higher net income in the third quarter of the year, while it also said it is delaying first flight of its CSeries single-aisle aircraft by six months because of supplier issues.
The strike by Machinists in Wichita, now in its fifth week, has so far not had a negative effect on the company’s Learjet 70, Learjet 75 and Learjet 85 programs, Pierre Beaudoin, president and CEO of Bombardier, said in a conference call Wednesday.
First delivery of the new Learjet 85 is still expected by the end of 2013, he said.
On the stroke front, a federal mediator has come to work with the company and the union to find a resolution to the work stoppage, Beaudoin said.
“What we want is to find a resolution and get our workers back to work,” he said.
Bombardier has a seven-month backlog of orders for Learjet business jets, which are assembled in Wichita.
While that’s a short backlog, it’s in line with its goal of a six-to-nine month backlog, Beaudoin said.
Sales of larger business jets have been selling well, but the market for the smaller jets has been difficult, he said, “although we have two new products, (the Learjet) 70 – 75. And in that end, it’s been much better.”
The business aircraft segment of the company is doing well, although “we were expecting the recovery to have a steeper curve,” he said.
When asked whether the results of the presidential election will affect business jet sales, Beaudoin said the company has done well in the U.S.
“And I think we’ll continue to do well,” he said. “Economic recovery is something we’re monitoring.”
In the past few months, it’s seen a comeback in the U.S. economy, “and we’re quite excited about it,” Beaudoin said.
Bombardier revenue for the quarter ending Sept. 30 totaled $4.3 billion, compared to $4.6 billion for the same time a year ago.
Net income totaled $212 million, up from $192 million a year ago.
Bombardier’s aerospace division recorded revenue of $2.3 billion, even with that of a year ago.
The company delivered 57 aircraft during the quarter, compared to 68 a year ago
Its aerospace backlog increased by 18.6 percent during the quarter to $26.1 billion.
Bombardier took orders for 45 business aircraft, including 19 aircraft for Global airplanes. It did not say how many orders were for Learjet products.
The company said it was delaying first flight of the CSeries commercial plane, which competes with Airbus and Boeing, in order to get the supply chain in sync.