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Bombardier profits drop over drop in aircraft orders

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(Globalpost/GlobalPost)

Canadian plane and train manufacturer Bombardier reported a slight dip in net profits Thursday, saying aircraft orders and deliveries slipped during the third quarter.

Bombardier Aerospace's revenue also fell to $4.06 billion from $4.2 billion during the same three-month period a year ago, the Montreal-based manufacturer said.

Excluding certain costs and gains, adjusted earnings dropped to $165 million, or nine cents a share, just below analysts' expectations of 10 cents, for the quarter ended September 30.

The previous year, Bombardier had reported earnings of $173 million, or nine cents a share as well.

Bombardier Aerospace's revenues came to $2.0 billion, a drop from $2.3 billion for the same period last fiscal year.

The division delivered a total of 45 aircraft during the quarter, compared to 57 a year earlier. It also received 26 net orders, compared to 83 a year ago.

"In Aerospace, results were in line with our guidance, but the low order intake and overall market conditions were a disappointment," said Bombardier president and chief executive Pierre Beaudoin.

Bombardier launched its new CSeries medium-range jetliner -- its biggest ever plane -- on its maiden flight last month, putting the Canadian manufacturer in direct competition with Airbus and Boeing.

Turning to trains, the company's transportation division reported revenues of $2.1 billion, compared to $1.9 billion for the same period last year.

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http://www.globalpost.com/dispatch/news/afp/131031/bombardier-profits-drop-over-drop-aircraft-orders