(Photo: Bombardier)
MonTREAL Bombardiers revenues surged 25 per cent in the first-quarter on higher-than-expected aircraft deliveries, while the aerospace and transportation giant said its CSeries commercial aircraft remains on target for its first flight next month.
Bombardiers net profit slipped to US$148 million or eight cents per share in the three months ended March 31. That was down from US$155 million, also eight cents per share, in the same 2012 period.
On an adjusted basis, net income increased four per cent to US$156 million, up from US$150 million.
That equalled eight cents per share, one penny below analyst expectations.
Revenue totalled US$4.3 billion, up from $3.5 billion.
We had a good first quarter, with an overall increase in revenues of 25 per cent, president and CEO Pierre Beaudoin said in releasing the companys earnings report.
Aerospace is showing increased deliveries, revenues and EBIT (earnings before interest and taxes), and the CSeries tests are progressing well with first flight next month, Beaudoin added.
Transportation also saw an increase in revenues and EBIT and received a good level of new orders across all divisions and key markets totalling $2 billion.
Beaudoin said the company expects an increase in revenues over the course of the year, while making good progress towards the groups EBIT target of eight per cent by 2014.
With our strong overall backlog of $63 billion and state-of-the-art products coming into service in the next few years, were very well positioned for solid future growth, he said.
Meanwhile, Bombardier said one unnamed customer facing financial difficulties cancelled its order for three CSeries planes.
However, Cameron Doerksen of National Bank Financial said the move was immaterial.
We view managements confidence in its target at such a late stage in the safety-of-flight testing as a good sign, he wrote in a report.
Bombardier said tests on the critical fly-by-wire system have so far shown no surprises, but Doerksen said the risk of delay remains.
We would expect any potential delay to be minimal (i.e. not another six months).
Walter Spracklin of RBC Capital Markets described the results as reassuring.
Overall, investors should be very encouraged by these results, he wrote in a report.
He said the overall results were positive and the transportation division, which building trains, appears to have turned the corner as margins were 6.7 per cent, up from four per cent a year ago.
We were encouraged by the transportation margin expansion that occurred in the first quarter, he wrote.
This has been a problem areaand while indications were that issues have been resolvedthe margin expansion was excellent reaffirmation.
