Bombardier Profits Soar, Aerospace Not So Much
Yesterday Bombardier reported a healthy overall jump in fiscal second-quarter profits to $211 million, a 53-percent leap from last year’s $138 million. Business aircraft sales–large-cabin jets in particular–accounted for 45 percent ($903 million) of the company’s $2.085 billion revenues in the second quarter; services accounted for 20 percent ($408 million) of revenues. But despite “three good quarters in a row” in its aerospace division, Bombardier Aerospace president and COO Guy Hachey said results in this segment remain mired in the recession. On the positive side, he noted that large-cabin Global Express XRS/6000 and Global 5000 orders remain strong, although offset somewhat by rather flat orders for the company’s Challenger line and sagging Learjet activity in the lighter end of the market. These numbers are reflected in an aircraft backlog totaling 36 months for Globals, 15 months for Challengers and six months for Learjets. Hachey said the Canadian OEM is on track to deliver 150 business aircraft this year. Asked about an anticipated upcoming major order for super-midsize jets from NetJets, he said only that Bombardier is “definitely a player in that market,” while pointing out that the fractional aircraft firm has yet to issue a request for proposal.