Canada's aerospace industry is poised for a 33% increase in operating profit this year from 2004, according to the Conference Board of Canada. The positive analysis is based on several assumptions, including that the Canadian dollar will decline in value and stay below 80 US cents. It also assumes there will be continued government support for Bombardier Aerospace and a decline in world oil prices.
Should the Canadian dollar rise to 90¢ it would harm aircraft exports to the USA, says the report.
The industry could make C$1.27 billion ($1 billion) in operating profit, up from C$958 million in 2004, according to the board. The Ottawa-based think-tank forecasts that Canada's aerospace sector's operating profit could rise to C$2.1 billion next year and C$2.7 billion by 2008.
The forecast of a C$315 million increase in operating profit this year is based on an assessment that the domestic aerospace industry bottomed out last year and a predicted comeback for commercial and military aviation.
BRIAN DUNN / MONTREAL
Source: Flight International
