Bombardier shares plummeted by more than 7% on 4 September after a warning that orders for its business jets will slow in the coming months after contributing significantly to a profit turnaround in the fiscal second quarter.

During the three months ended 31 July, the Canadian airframer recorded revenue of $2.5 billion, up $3 million year-over-year. It received 175 net orders, including 162 business aircraft, 11 commercial aircraft and two amphibious aircraft. This compares with 187 orders in the corresponding period the previous year.

The rise in revenue reflects increased deliveries and improved selling prices for business aircraft partially offset by lower commercial aircraft deliveries.

Bombardier Aerospace president Guy Hachey warns, however, that while the fiscal third and fourth quarters will be good quarters for business jets they will not be "as strong as the second".

Bombardier also sees a softening in the commercial regional jet market, due to current industry turmoil. But Hachey predicts that the fiscal third and fourth quarters "will be more normalised" than the just-ended quarter.

High demand has also put a lot of pressure on the Q400 supply chain internally and externally, resulting in slower deliveries. But Hachey says "you should see us improving at the end of the year".


Source: Flight International