With four deliveries of its Global 7500 slipping into the first quarter, Bombardier handed over 11 of the new flagship models last year, shy of the anticipated 15 to 20, it reported today. It also acknowledged that 2019 financial results are also coming in below guidance. The Canadian company will report full-year results on February 13, but in today's preliminary report said it delivered 142 business jets and 33 commercial aircraft last year.
While the 175 deliveries were in line with the 175 to 180 estimated in revised guidance at the end of the second quarter, the 142 business jet deliveries were short of the 150 to 155 estimated at that time. As for financial results, Bombardier had estimated its aviation division would generate about $8 billion in 2019, but is now expected to report $7.5 billion. EBIT margin came in on target at 7 percent.
Bombardier noted that delivery slippage of the four Global 7500s played into the overall results, but said its aviation segment has “made good progress ramping up the Global 7500,” which entered service in late 2018. Also, while not quite reaching its target, the deliveries in 2019 overall made a jump over the 137 Bombardier business jets handed over in 2018. That tally included the first customer Global 7500.
In the fourth quarter, Bombardier delivered 52 business jets, including six Global 7500s—showing an acceleration of that line. In fourth-quarter 2018, the company handed over 41 business jets. Despite the ramp-up in Global 7500 deliveries, Bombardier’s business-jet backlog increased slightly from $14.3 billion at year-end 2018 to $14.4 billion a year later.