Lower selling prices take edge off Bombardier Q2 profits

This story is sourced from Pro
See more Pro news »

Second quarter aerospace segment operating profit at Bombardier fell back 3% to $102 million despite a nearly 10% improvement in revenue, as lower net selling prices for commercial aircraft, rising selling costs for business aircraft and the negative impact of a rising Canadian dollar took their toll on its bottom line.

Bombardier delivered 62 commercial and business aircraft in the quarter, versus 56 last time, and closed the second quarter having increased its order backlog by 14.5% since 31 December 2011, to $25.2 billion.

For the year to end-June, commercial aircraft orders totalled 174, including 72 firm.

The company reports "good progress" towards achieving entry-into-service of its CSeries jet at the end of 2013. On the "aircraft 0" ground testing rig, most systems are reported to be up-and-running.

The Learjet 85 business jet programme is also reporting good progress, with work "well underway" on the first two flight test aircraft and ground test platform.