Bombardier flies high on increased sales

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Manufacturing News, Source : TheManufacturer.com
Published : 31 Mar 2005 15:14
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Bombardier, the world’s third largest commercial aircraft maker, has posted its financial results for the fourth quarter and for the year ended January 31, 2005.

The Canadian plane maker reported a strong recovery in the business jet market, with net orders up 69 per cent, continued leadership in a ‘challenging’ regional jet market and successful ongoing execution of its restructuring initiative.

Revenues at the Canadian aircraft and train manufacturer Bombardier totalled $4.8 billion for the final quarter, compared to $4.9 billion for the same period last year. For the 12 months ended January 31, revenues totalled $15.8 billion, compared to $15.5 billion the previous year. These results mainly reflect higher revenues in the transportation segment and lower revenues in the aerospace segment, the company said. Pre-tax profits before special items were $93 million for the fourth quarter ($38 million loss for the same period last fiscal year). The improvement of $131 million was mainly due to better results in the transportation segment. However, pre-tax profits before special items for fiscal year 2005 were $71 million, compared to $311 million last year.

In the aerospace segment, business jet net orders were up 69 per cent year over year, demonstrating the continued strengthening of the market, Bombardier said. For the transportation segment, its restructuring initiative was proceeding as planned with around 4,000 jobs having been cut during the year.

Chairman Laurent Beaudoin said the corporation's foundations were robust. “All our efforts will be concentrated on our two main businesses to ensure that they can achieve their full profit potential," he said.

Bombardier Aerospace was profitable for the fourth quarter and the year “in spite of a challenging environment”. Total aircraft deliveries increased to 329 from 324 the previous year. Business jet deliveries were up 44 per cent. Business jet net orders were up 69 per cent and turboprop aircraft orders were up 88 per cent for the year. Business jet market share, based on deliveries, reached 27per cent from 20 per cent last year. The regional aircraft market share, based on gross order intake, increased from 56 per cent to 67 per cent. Deliveries of Bombardier products represented 57 per cent of the overall 20- to 90-seat regional aircraft deliveries during the last year. Restructuring at Bombardier Transportation, the company’s train-making division, continued with three plant closures during the year. A detailed procurement action plan was put in place to reduce costs and the number of suppliers.