Bombardier shares against trend as it reports 1Q financials and breaks CSeries drought


Bombardier has broken a 16-month ordering drought for its new CSeries and reported a better-than-expected 1QFY2012 profit, lifting its shares 3% against a general aerospace stock slump. Bombardier, which is also the world's largest train maker, reported net profit of USD220 million, up from USD195 million a year ago. Revenue rose 9%, to USD4.66 billion.

  • Bombardier breaks ordering drought for CSeries, receives order for 10 aircraft from Braathens Aviation.
  • Bombardier reports better-than-expected 1QFY2012 profit of USD220 million.
  • Aerospace revenue rises 10% to USD2.2 billion.
  • Bombardier expects to deliver 150 business aircraft and 90 commercial aircraft in 2011.
  • Q400 output to be temporarily reduced at the end of 2011.
  • Bombardier in advanced talks with 7-10 customers for CSeries orders.

Aerospace revenue rose 10% to USD2.2 billion. Bombardier reports its commercial aircraft segment has been slower to recover, by is now seeing an improved level of interest from customers. The company expects to deliver 150 business aircraft and 90 commercial aircraft in 2011. Q400 output will be reduced temporarily at the end of 2011, while Bombardier stated it will need some major orders for its CRJ regional jet family if it is to avoid cutting output in 2011.

Sweden's Braathens Aviation announced an order for 10 CSeries aircraft - five CS100s and five CS300s - as well as 10 options for its Malmo Aviation unit. The order brings the backlog for CSeries aircraft to 100, as well as 100 options.

Bombardier also confirmed it is in advanced talks with seven to 10 customers for CSeries orders, with other order negotiations going on with a "handful" of customers.

Selected aerospace suppliers share price movements (% change): 01-Jun-2011

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More