Bombardier posted a net loss of $94 million in the third quarter of 2016, a notable improvement from its $4.9 billion loss in the same period last year, leading the company to say its "operational transformation is gaining traction".
The manufacturer's revenue in the period slipped 10% to $3.7 billion and its cost of sales likewise declined 10% to $3.4 billion, it says.
“We continue to gain momentum as we execute our turnaround plan and transform our company,” Bombardier chief executive Alain Bellemare says in a media release.
“As we close out 2016, we are confident in our strategy, our turnaround plan and in our ability to achieve our 2020 goals,” he adds. “We remain focused on improving operational efficiency [and] flawlessly ramping-up our new programs.”
The company still expects total companywide revenue of about $16.5 billion in 2016, and earnings before income taxes and special items of between $350 million and $400 million for the year, it says.
Bombardier's commercial aircraft business earned revenue of $538 million in the third quarter, up 12% year-over-year.
The company expects the division will take in $2.7 billion in revenue for the full year, down slightly from the $3.0 billion estimate Bombardier made in its 2015 financial report.
Bombardier predicts the commercial aircraft business will report a loss of $450 million before taxes and special items in 2016, it says.
On 1 September, Bombardier received the second $500 million installment of a $1 billion investment in the CSeries programme by the government of Quebec.
In early September, Bombardier announced it expects to deliver about half as many CSeries aircraft in 2016 as it had expected due to delays in the ramp up of engine production by Pratt & Whitney.
Bombardier's revised figures call for seven CSeries aircraft this year, down from 15, and the company expects the CSeries programme to achieve cash flow of $1.15 billion in 2016.
Bombardier says the CSeries programme remains on track.
"Flight and aircraft structural test performance results have exceeded original targets for fuel burn, payload, range and airfield performance," says the company's third quarter report. "Our focus now is on ramping up to full production, delivering aircraft and providing our customers with full support as they launch their aircraft into revenue-generating service."
The first CS100 entered service with Swiss on 15 July and Bombardier expects the first CS300 will enter service with Air Baltic in the fourth quarter, it says.
Bombardier's commercial aircraft unit delivered 16 aircraft in the third quarter: five CRJ900s, one CRJ1000, one CS100 and nine Q400 turboprops, it says.
The company has received firm orders for 121 CS100s and 235 CS300s, plus options for 99 CS100s and 133 CS300s, it says.
Bombardier also holds firm orders for nine CRJ700s, 31 CRJ900s, 20 CRJ1000s and 34 Q400s, it says.
Since the beginning of the year the company achieved 80% of 7.000 job cuts announced in February, it says.
Bombardier expects reorganisation efforts will achieve savings of $300 million by the end of 2018, but predicts up to $275 million in restructuring charges through 2017, it says.
Source: Cirium Dashboard