Deliveries at Bombardier Business Aircraft softened in the first quarter as the manufacturer ramps up Global 7500 production and works to bring the Global 5500 and 6500 to market later this year. Meanwhile, though, the manufacturer maintained its guidance of 150 to 155 business jet deliveries for the year and experienced strong order intake.
In preliminary first-quarter results released today, Bombardier reported 24 business jet deliveries: two Learjets, 14 Challengers, and eight Globals. This is down from the 31 deliveries in the first quarter of 2018: three Learjets, 18 Challengers, and 10 Globals. Revenues, in turn, slid, from $1.1 billion in first-quarter 2018 to an estimated $970 million this year (Bombardier will release full results on May 2).
While deliveries declined by nearly 25 percent in the first three months, the revenue dip was much less, possibly reflecting the initial deliveries of its ultra-long-range Global 7500 flagship. Bombardier anticipates delivery of 15 to 20 of the $73 million jets this year, with shipments weighted more toward the second half.
Meanwhile, Bombardier’s Business Aircraft unit experienced a 1.6:1 book-to-bill in the quarter, boosting backlog to $14.9 billion, up from $14.3 billion a year ago. “With expected deliveries more heavily weighted to the second half of the year, Business Aircraft’s full-year guidance remains unchanged,” the company said, anticipating revenues of about $6.25 billion.