Aerospace division will drive Bombardier results
Feb. 19, 2013, Montreal - Bombardier's fourth-quarter results aren't expected to be particularly strong, but industry analysts believe the transportation giant is headed for at least two years of upswing primarily from a rebound in its aerospace division.
February 19, 2013 By The Canadian Press
David Tyerman of Canaccord Genuity forecasts that the company will post "much improved operating earnings in 2013 and especially after 2014 from a rebound in aerospace demand.''
Montreal-based Bombarder is expected to cap 2012 by announcing this wek that it earned 10 cents per share in adjusted
profits on US$5.04 billion of revenue in the final quarter of the fiscal year, according to analysts polled by Thomson Reuters.
That compares to 12 cents per share on US$4.3 billion of revenues in the prior year.
The manufacturer will also issue its 2013 guidance Thursday.
It's expected to project strong aircraft sales due to a stronger backlog and higher margins for its aerospace and transportation
The business jet industry is starting to enjoy a cyclical recovery, even though deliveries remain below previous peak levels.
And regional airlines are expected to place new orders from increasing the size of their planes or ordering fuel-efficient
Bombardier's new CSeries, whose first test flight has been delayed until June, could deliver six planes in 2014, predicts Cameron Doerksen of National Bank Financial.
He sees potential of Bombardier's shares to increase in the second half of this year if the development of the 110 to 149-seat
aircraft isn't further delayed and if the first flight triggers additional orders.
The analyst increased his one-year share price target to C$4.25 from C$4 despite lowering his 2013 earnings forecast by nine per cent to 39 cents per share. He also introduced a 45 cents per share profit in 2014.