June 1, 2011 Bloomberg
June 1 (Bloomberg) — Bombardier Inc., the world’s third- biggest commercial jet maker, said quarterly profit rose more than analysts expected as it delivered more commercial and business aircraft.
Net income in the three months through April 30 increased to $220 million from $194 million, Montreal-based Bombardier said today in a statement. Adjusted profit of 12 cents a share beat the 9-cent average estimate of 17 analysts surveyed by Bloomberg. Sales rose 9 percent to $4.7 billion.
Business-jet demand is rising as corporate profits recover while emerging markets such as India and China lead an anticipated recovery in airline demand, the company said May 18. Deliveries of business jets in the period rose to 61 from 56, while commercial plane deliveries rose to 23 from 16.
“Bombardier Aerospace has started to benefit from a stronger business aircraft market, especially at the high end,” Chief Executive Officer Pierre Beaudoin said in a statement. “Our commercial aircraft segment, although slower to recover, is seeing an improved level of interest from customers.”
Bombardier’s CSeries, the newest product on offer in its commercial aircraft division, has won no new orders since Republic Airways Holdings Inc. agreed to buy 40 jets and took options for 40 more about a year ago. Some analysts have questioned whether that indicates a lack of demand for the narrow-body aircraft, which will seat 100 to 149 passengers.
Gary Scott, who leads the commercial aerospace division, said May 25 that he’s more concerned with having enough capacity to build a plane a day in four to five years than the lack of announced orders.
Airbus SAS, based in Toulouse, France, is the world’s largest commercial planemaker, followed by Chicago-based Boeing Co.
Sales at the aerospace unit rose to $2.2 billion from $2 billion a year ago while earnings before interest and tax rose to $141 million from $133 million. Backlog, or orders not yet filled, rose 10 percent to $21.1 billion versus the end of January, the company said.
Sales at the company’s transportation unit, which makes subway cars and locomotives, rose to $2.5 billion from $2.3 billion while earnings before interest and tax was $171 million, compared with $146 million for the same period last year. The unit’s order backlog was worth $34 billion at April 30 compared with $33.5 billion as of Jan. 31.
Source: SAN FRANSISCO CHRONICLE