Bombardier Fourth-Quarter Net Income Falls on Lower Deliveries
Bombardier Inc. (BBD/B), the world’s third- biggest maker of commercial jets, said fourth-quarter profit fell 27 percent as deliveries of regional aircraft slid.
Net income declined to $214 million, or 12 cents a share, from $295 million, or 16 cents, a year earlier, according to a statement today from Montreal-based Bombardier, which shifted to calendar-year reporting beginning with today’s statement. Sales fell 22 percent to $4.32 billion, lower than the average analysts’ estimate of $4.74 billion. Results covered two months of operations of the company’s aerospace unit, as Bombardier brought forward its year end by one month to Dec. 31.
After cutting production of its smaller CRJ regional jets last year, Bombardier is working to meet a 2013 target for the commercial debut of the C-Series jetliner, its largest plane, which is costing about $3.5 billion to develop. The company said today it expects deliveries to drop to 235 this year from 245 in the fiscal year ended Dec. 31. Business aircraft will make up the bulk of shipments, with 180 planes delivered, with 55 commercial aircraft, Bombardier said.
“The outlook is somewhat brighter for Bombardier this year with the business aviation recovery continuing to pick up,” Fadi Chamoun, an analyst at BMO Capital Markets in Toronto, wrote in a note to clients last week. “There are signs of improving demand” for regional jets and turboprops, he wrote.
Bombardier shipped 60 planes in the two-month period ended Dec. 31, down from 100 in the three-month period a year earlier.
Excluding some items, Bombardier was expected to report profit of 12 cents a share, according to the average estimate in a Bloomberg survey of 12 analysts.
Bombardier had $53.9 billion of future orders in its backlog as of Dec. 31, up from $52.7 billion a year earlier.
Shares of Bombardier fell 1.7 percent to C$4.75 in Toronto Stock Exchange trading yesterday. The stock has gained 17 percent since the start of the year.
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