Bombardier said to be able to focus on the regional aircraft

Bombardier dit pouvoir se concentrer sur les avions régionaux

Photo: Remy de la Mauviniere Associated Press
A Bombardier CRJ1000 (left) and a Q400 to the paris air show, in Paris

Bombardier, whose attention is not diverted by the aircraft formerly known as the CSeries, said it is working to improve the profitability of its turboprops and regional jets by increasing its sales while reducing its costs.

The backlog of regional aircraft of the montreal company has reached 116 aircraft, which is sufficient for three years of production, and allows him to increase his rate of production. Its segment of commercial aircraft has gained orders for a total of 16 Q400 turboprops and 35 bombardier CRJ Series equipped with its new design of cabin.

“It was important to continue to focus on adding volume, focus on the cost structure and ensure that we have highly effective programs, really focused on the secondary market,” explained Thursday the finance director, John Di Bert, during a conference call on the results for the second quarter. “Our strong performance allows us to achieve our goal for the balance of the net cash flow for this year and, more importantly, to support the generation of cash flows in the future,” added Mr. Di Bert.

Bombardier has said that its revenues increased by 3 %, to 4.26 billion US$, in the second quarter. The major part of this increase is attributable to an 11% increase in sales of Bombardier Transportation, which is 2.26 billion of the total. Revenue decreased in the divisions of commercial aircraft and business aircraft.

The company has achieved a profit of 70 million in the second quarter, with a free cash flow of $ 232 million, of which approximately $ 600 million of net proceeds from the sale of the property of Downsview, in Toronto. Net income was $ 2 US ¢per share, compared to a loss of 243 million US$, or 11 cents US per share, a year earlier. On an adjusted basis, Bombardier has earned $ 87 million, or 3 cents US per share.

“Our cycle of massive investments are largely completed, we are now focusing on the ramp-up of our production and improving our operational efficiency to accelerate growth,” said president and ceo, Alain Bellemare, the analysts.

The results have been “impressive” with a solid cash flow and good momentum for the second half of the year, said Benoit Poirier of Desjardins capital markets.

Bombardier has entered into a number of strategic actions key during the quarter, including the conclusion of a partnership with the european giant Airbus. In the framework of this partnership, the european airplane manufacturer, has taken a majority stake 50.01 % in the program of the CSeries commercial aircraft, effective 1 July.