Bombardier releases financials for FY2010

 - April 30, 2010, 7:05 AM

Bombardier announced its financial results for the fourth quarter of its fiscal year and for the year ending Jan. 31, 2010.

Total revenues for both commercial and business aircraft totaled $9.4 billion, down slightly from $10 billion in the previous fiscal year, and the total backlog for both sectors was $16.7 billion, compared with $23.5 billion as of Jan. 31, 2009.

The Canadian OEM delivered 176 business jets in its FY2010, compared with 235 in the previous year; however, the company said it had increased its revenue market share from 31 percent to 32 percent.

The outlook for its 2011 fiscal year was not particularly encouraging, with deliveries forecast to be 15 percent lower than in 2010. The business jet backlog, as of January 31, stood at six months for the Learjet line, 13 months for Challengers and 26 months for the Global line, compared with a Jan. 31, 2009 backlog of 17, 20 and 43 months, respectively, primarily the result of order cancellations, are at a much lower level this year, according to Bombardier.

On a more positive note, according to Bombardier Aerospace president and COO Guy Hachey, Bombardier Aerospace capital expenditure is expected to double this year, with part of the investment going to the new Learjet 85 and expansion of facilities in Queretaro, Mexico, where key components of the aircraft are being manufactured.

Pierre Beaudoin, Bombardier Inc. president and CEO, expressed confidence going through this year and into next, saying profitability should be higher in the second half of this year as a result of a more favorable pricing environment, and order intake is likely to be higher as well.