Montreal-based Bombardier Aerospace last year delivered 239 business jets, seven more than the previous year, and further took net orders for 262 more, though it is girding for a tougher 2009. The aircraft manufacturer said today that it expects to ship about 10 percent fewer business aircraft this year due to the global recession.
On Thursday, Bombardier reported a year-over-year revenue increase of 22 percent, to $4.9 billion, in its second fiscal quarter ending July 31, thanks in large part to its aerospace division. The company’s aerospace division contributed $2.5 billion of these revenues in the quarter, up from $2.2 billion in the same period last year.
General Electric has purchased the bulk of Bombardier Capital’s corporate aircraft leasing and financing business. The selling price of $339 million represents the “book value” of the loans and financial leases outstanding, Bombardier said.
Pierre Beaudoin’s reign as Bombardier president and CEO began on June 4. The younger Beaudoin succeeded his father, Laurent–who will remain chairman of the board of directors–as the head of the Canadian transportation giant.
“A strong market for strong products” is driving growth at Bombardier Aerospace, according to president and chief executive officer Pierre Beaudoin. The Canadian group is increasing its 27,000-strong workforce even as it faces the challenge of achieving earnings growth targets subject to currency exchange fluctuations that have led it to outsource more work to lower-cost partners.
Bombardier has cut aircraft production figures for the current 2001-02 financial period in reaction, it said, to the economic crisis sparked by the September 11 terrorist attacks on the U.S.
The business jet industry “remains strong,” according to newly appointed Bombardier president and CEO Pierre Beaudoin, who released first quarter financial results during an investors conference call yesterday. Revenues for Bombardier Aerospace increased 5 percent, from $2.26 billion in the first fiscal quarter last year to $2.38 billion in the same period this year.
Bombardier Aerospace has promoted Peter Edwards to president of its business aircraft unit. Edwards, who has served in other executive positions in the business aircraft unit since joining the company in 1995, takes the left seat from Pierre Beaudoin (son of Bombardier chairman Laurent Beaudoin), who became president and COO of Bombardier Aerospace this past October.
Low demand for corporate aircraft and small airliners has led New York-based financial advisor Moody’s Investors Service to review, and possibly downgrade in
the next two months, certain Bombardier debt ratings. Bombardier Aerospace’s intermediate-term earnings and cash flow could be constrained by any adverse market effects, according to Moody’s corporate finance group senior vice president Tassos Philippakos.
Bombardier has named Guy Hachey president and COO of its aerospace division, following Pierre Beaudoin’s promotion to president and COO of Bombardier Inc. Hachey brings more than 30 years of experience in the industrial manufacturing sector to the Montreal-based airframer, first with GM and most recently with Delphi.