Bombardier Seeing Black Ink…and White Tails
Montreal-based Bombardier on Thursday announced that revenues increased by 13 percent to $19.7 billion in the fiscal year ending January 31. Meanwhile, its profits nearly tripled from the previous fiscal year to $1 billion for FY2009. At Bombardier Aerospace, revenues edged up slightly to $10 billion for the fiscal year from $9.7 billion in the year-ago period, and earnings before interest and taxes rose to $896 million, compared with $563 million the previous year. Bombardier Aerospace’s backlog reached $23.5 billion as of January 31, up from the $22.7 billion recorded a year ago. On the business aircraft side, Bombardier Aerospace delivered 235 jets and took net orders for 251 during the fiscal year. However, Bombardier said business aircraft demand deteriorated rapidly during the second half of last year and is expected to remain weak for the foreseeable future. In fact, Bombardier president and COO Guy Hachey said during an investor call on Thursday morning that the company already has 19 undelivered “white tail” business jets sitting on the ramp since customers couldn’t afford to take delivery despite making the previous required deposits. Bombardier Aerospace also has 29 pre-owned business jets in inventory that it took as trade-ins but hadn’t been able to sell before their values dived over the past six months.