Canadian aerospace profits forecast to fall by 20% in 2010

Conference Board of Canada forecast a reduction in prices, production and profits for the Canadian aerospace industry in 2010, dragged down by slowing business jet ordering affecting Bombardier and other major companies (Reuters, 03-Dec-2009). While the industry has a "healthy" backlog, no major recovery is forecast until 2011. Pretax profit is expected to decline nearly 20% year-on-year in 2010, and production cuts are "likely" if the trend of deferred and cancelled orders continues.