Rising costs hit Bombardier Aerospace

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Bombardier Aerospace's operating profit margin is edging downward, with the fiscal 2011 return dropping to 5.8% from the 6.4% achieved the year before.

The company anticipates a return of about 5% for 2012 on expected deliveries of approximately 180 business aircraft and 55 commercial aircraft.

Bombardier changed its aerospace division's fiscal year end to 31 December from 31 January, leaving FY2011 with just 11 months and revenues of $8.6 billion, compared to 12-month sales of $8.8 billion the year before.

Operating profit - EBIT - came in at $502 million for the 11 months to end-December, compared to $554 million in the full year to end-January 2011.

The profit margin was hit by rising materials costs and lower margins from sales of pre-owned aircraft.

A revenue decline in the short fiscal year was partially offset by higher revenues for business aircraft, mainly due to higher deliveries despite the 11-month period and higher net selling prices.

The group recorded 249 net orders for FY2011 compared to 201 net orders in the previous, 12-month fiscal year. Deliveries totalled 245 aircraft for the fiscal year ended 31 December, compared to 256 last fiscal year - including 78 commercial aircraft (down from 97 last time), 163 business aircraft (155) and four amphibious aircraft (4).

Bombardier expects to deliver approximately 180 business aircraft and 55 commercial aircraft for the fiscal year 2012.