Bombardier’s Q2 results slower due to contract timing
Aug. 9, 2012, Montreal - Bombardier Inc. second-quarter net income and revenue fell but the decline was largely in line with
expectations and full-year revenue will be in line with last year's, the transportation equipment giant announced Thursday.
August 9, 2012 By The Canadian Press
The Montreal-based company, which reports in U.S. currency, said it had 10 cents per diluted share of net income in the second quarter, down from U.S. $211 million or 12 cents per share a year earlier.
Analyst estimates compiled by Thomson Reuters had also been for 10 cents per share of profit.
Revenue fell to $4.2 billion from $4.7 billion, with all of the decline attributed to the timing of certain large contracts at the
Transportation rail division.
Analysts had been expecting $4.6 billion of revenue but it appears the company will make up lost ground later in the year.
Bombardier Aerospace increased its revenue by $200 million to $2.3 billion.
"As anticipated, our revenues were lower in the second quarter. However, we expect revenues for the full year to be in line with last year's," Pierre Beaudoin, Bombardier's president and chief executive, said in the announcement.
A consensus estimate compiled by Thomson Reuters indicated analysts had been expecting 2012 revenue would be about $200 million lower than last year.
"In Transportation, revenues were lower due to the timing of completion of certain large contracts while major new orders are
still in the start-up phase. We continued to see a good level of activity with $2.9 billion of new orders in the quarter, especially
in North America and Europe."
"In Aerospace, revenues for the quarter were higher at $2.3 billion compared to $2.1 billion last year, with overall deliveries
of 62 aircraft compared to 56. The level of new orders in Business Aircraft was quite strong and the momentum continues in Commercial Aircraft with 174 orders and other agreements announced so far this year.''
Among the contracts are a $7.3 billion deal from NetJets for 100 Challenger business jets and 175 options, an order from WestJet for 20 Q400s plus options for 25 more planes to launch a regional service and a San Francisco rail tender worth $895 million.
Still, the company's share price has not been rewarded with the stock remaining more than 30 per cent below its 52-week high.
Investors are focused on development of the CSeries, which is slated to make its first flight in December.
Bombardier has 33,600 employees and production facilities in 24 countries. It is the world's third-largest commercial aircraft
manufacturer, largest maker of business jets and trains.
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