Skip to main content

Bombardier's C-S100 taxis in after its maiden test flight at the company's facility in Mirabel, Que. in this file photo.Ryan Remiorz/The Canadian Press

Bombardier Inc.'s third-quarter earnings fell almost 50 per cent as the plane and train maker took a charge related to previously announced job cuts, but profit on an adjusted basis beat expectations.

Net profit was $74-million or 3 cents per share, compared with $147-million or 8 cents in the year-earlier period.

Revenue was up 20 per cent at $4.9-billion, above analysts' estimates of $4.82-billion.

On an adjusted basis, net profit was $222-million or 12 cents, compared with $165-million or 9 cents. Analysts had been expecting earnings per share of 10 cents in the quarter.

A major restructuring plan that includes the slashing of 1,800 jobs in the aerospace unit is producing positive results, Bombardier president and chief executive officer Pierre Beaudoin said.

"Our new lighter structure will result in a more nimble organization with the added benefit of reduced costs," he said.

Montreal-based Bombardier delivered 71 aircraft in the quarter, up from 45 a year earlier.

The company said it booked 76 net orders, compared with 26 for the same period last year.

Aerospace revenue was up 29 per cent to $2.6-billion, from $2-billion.

RBC Dominion Securities analyst Walter Spracklin said in a research note Thursday that the company "came in slightly ahead on operating results [of $291-million] and only modestly below on cash flow.

"While this is a (modest) positive, we do not see it as a major catalyst that would get the shares to new highs. Rather it will be trends in the C Series project (and most notably new orders) that we believe will be the main driver of the stock in the near term."

The all-new C Series single-aisle jet, which has experienced delays and cost overruns, is making progress in flight testing, Bombardier said on Thursday.

The total number of flight hours has reached about 450, out of the 2,000-to-2,400 required.

Bombardier says it expects entry into service of the new jet by the second half of 2015.

On the rail side, Bombardier Transportation's revenue was $2.3-billion, up 12 per cent from $2.1-billion a year earlier.

The order backlog is $34.5-billion, compared with $32.4-billion.

"During the third quarter, we saw good momentum at Aerospace with improvement on all fronts. The C Series flight test program resumed in September and is progressing well. Transportation also had good results in the quarter," Mr. Beaudoin said.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe