Bombardier net income declines 14.5% in Q3

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Fewer Bombardier aircraft deliveries in the third quarter contributed to a 14.5% decline in net income compared to the same period a year ago.

The third quarter financial results released today show across the board declines at the corporate level for Bombardier.

Overall revenues declined by $100 million year-on-year to $4.1 billion. Adjusted net income declined to $165 million from $173 million last year. Net income dropped 14.5% to $147 million.

Bombardier Aerospace also reported lower earnings in the third quarter of 2013.

The company's aerospace division reports earnings before financing costs and taxes of $86 million, down 27% year-over-year, as aircraft deliveries and orders slipped.

The company delivered 45 aircraft in the quarter and received orders for 26 aircraft.

During the third quarter of 2012, Bombardier delivered 57 aircraft and received 83 aircraft orders.

“In aerospace, results were in line with our guidance, but the low order intake and overall market conditions were a disappointment,” says Pierre Beaudoin, president and chief executive, in the release. “And in September, the CSeries had its first flight, thus starting the extensive flight test program.”

The first CSeries test aircraft made its fourth test flight from Montreal's Mirabel airport on 30 October.

During the third quarter Bombardier signed a memorandum of understanding with Russian state corporation Rosteckhnologii, or Rostec, to set up a production line for Q400 aircraft in Russia.

The company also signed an agreement to sell the activities of subsidiary Flexjet to newl-created Flexjet LLC for $185 million.

Bombardier ends the quarter with $4.0 billion in available short-term capital resources, including $2.6 billion in cash or cash equivalents.