Bombardier (TSE:BBD.A) (TSE:BBD.B) reported a drop in net profit for the first quarter of the year, although revenue for the Montreal-based planes and train manufacturer was up and earnings per share held steady as expectations mount for the company’s new C Series plane due for its first test flight next month.
Net income for the three months that ended March 31 came in at US$148 million for the quarter, down from the US$155 million recorded for the first quarter of 2012, for earnings per basic and diluted share of US$0.08, the same figure posted a year earlier.
Adjusted net income for the quarter came in at US$156 million, up from the figure of US$150 million recorded for the same quarter a year ago, for adjusted earnings of US$0.08 per share, steady on a year ago.
Revenues of US$4.3 billion for the quarter were up on the US$3.5 billion recorded in the year ago period, a bump of 25 per cent. Much of that gain came from Bombardier Aerospace, which reached revenues of US$2.3 billion in the quarter, compared to US$1.5 billion for the same quarter a year ago.
Revenues for the rail unit were US$2.1 billion, up only marginally on the US$2 billion recorded for the first quarter of the year prior.
The Bombardier Aerospace unit delivered a total of 53 aircraft in the quarter, compared to the 37 delivered in the same quarter a year ago.
Bombardier Transportation, also known as the rail unit, recorded new orders of US$2 billion, compared to the US$1.2 billion for the same quarter in the previous fiscal year.
“We had a good first quarter, with an overall increase in revenues of 25 per cent,” president and chief executive officer Pierre Beaudoin said in a company statement issued with the figures. “Aerospace is showing increased deliveries, revenues and EBIT, and the C Series tests are progressing well with first flight next month.”
The C series, the company’s new commercial jet, is scheduled for its first flight by June 30. According to a press release issued by the company Thursday, it had commitments for the purchase of 338 C Series aircraft, including 145 firm orders from nine customers in eight countries. The company is aiming for 300 firm orders by mid-2014.
"Transportation also saw an increase in revenues and EBIT, and received a good level of new orders across all divisions and key markets, totalling US$2 billion. We expect an increase in revenues over the course of the year, while making good progress towards the group's EBIT target of 8% by 2014. With our strong overall backlog of US$63 billion and state-of-the-art products coming into service in the next few years, we're very well positioned for solid future growth," concluded Beaudoin.
Shares in the company were trading up on the TSX on the back of the results, jumping almost 5 per cent to hit US$4.43 a share from a previous close of US$4.23.