Bombardier expects loss in Commercial Aircraft segment in 2015

Bombardier provided (28-May-2015) the following outlooks for its Bombardier Commercial Aircraft and Aerostructures and Engineering Services segments:

Underlying assumptions: World economy projected to grow by 2.8%, 3.2% and 3.3% over each of the next three years;

Bombardier Commercial Aircraft:

• 2015 EBIT: (USD200 million);
• 2015 deliveries: 80 aircraft;
• Global economic growth will encourage momentum Bombardier expects to see in the commercial aircraft market;
• In the short term, Bombardier believes the market for larger regional and smaller mainline aircraft should grow in North America as airlines focus on fleet optimisation, efficiency and reducing environmental impacts. The GDP in the US, the largest market for business and commercial aircraft, is expected to grow by 3.1% in 2015 compared to a 2.4% GDP growth in 2014;
• Bombardier does not expect much growth in regional aircraft in Europe in 2015, where GDP is expected to grow at only 1.8%. For 2016 and 2017, the expected growth in Europe is at 2.1%;
• Bombardier remains confident that continuing economic growth should increase the demand for air travel over the next 20 years;
  Bombardier estimates 13,100 new aircraft deliveries for the 20- to 149-seat commercial aircraft category for the 20-year
  period from 2014 to 2033 valued at USD658 billion in constant 2013 dollars.

Aerostructures and Engineering Services:

• EBIT margin: 4%;
• Revenue: USD1.8 billion, mainly from Bombardier's business and commercial aircraft segments;
• Robust mid- to long-term outlook. Most key market drivers are strongly linked with those of the aircraft OEMs, such as economic growth, air passenger traffic and aircraft retirement rates;
• Aerostructures market is mainly driven by new product development or upgrades as well as growth in production rates and backlogs in the various aircraft sectors;
• Outlook for Aerostructures and Engineering Services is closely tied to and driven by similar market dynamics to the Business and Commercial Aircraft segments. [more - original PR]