Bombardier's regional jet deliveries picked up during the third quarter, having been slowed by the strike earlier this year. But the Canadian manufacturer must still deliver 71 CRJs, 10 Q-series turboprops and up to 35 business jets by the end of its financial year on 31 January to meet its full-year forecast.
Bombardier's aerospace revenues fell 5.3% to C$2.4 billion ($1.5 billion) in the quarter ended 31 October, while pre-tax earnings dropped 54% to C$111 million. An increase from 45 to 50 regional aircraft deliveries was more than offset by a fall from 24 to 17 in business jet shipments and an increase in low-margin used business aircraft sales.
Chief executive Bob Brown says the target of delivering up to 71 regional jets, 30-35 business jets and 10 turboprops in the final quarter is "achievable". Most aircraft scheduled for delivery have been built, and the customers have financing in place, he says. "It is not an astonishing number. We have delivered that many before [in the fourth quarter]."
Bombardier delivered 119 regional jets, 66 business jets and 21 turboprops in the first three quarters and has not revised its financial targets for the full year. "We have to deliver a strong fourth quarter. It will be a challenge," says Brown.
The company plans to sell its business aircraft financing portfolio by the end of the financial year, and find a third-party partner to take over remarketing of used aircraft traded in against new business jets.
The Canadian manufacturer also reported a total third-quarter net income of C$209 million, up from a loss after special items of C$368 million a year ago, on revenues up 12.5% to C$5.6 billion.
Source: Flight International
