Bombardier Profit Falls After Job-Cut Charge

May 30, 2006

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Bombardier's first-quarter earnings fell after a charge for job cuts at its train-making unit, but business jet deliveries and prices rose, the company said on Tuesday.

Bombardier, the world's third-largest civil aircraft maker, said it earned USD$24 million, in the quarter. That compares with a profit of USD$55 million a year earlier.

Bombardier took a USD$24 million charge for job cuts in the quarter, against an USD$8 million gain a year earlier.

Income from continuing operations before special items was USD$43 million, compared with USD$28 million a year earlier.

Revenue fell to USD$3.5 billion from USD$3.7 billion, mainly because of lower contributions from the UK and Germany in its train segment and fewer deliveries of regional jets.

Bombardier said it had cash and equivalents of USD$2.2 billion, after net payment of USD$321 million of long-term debt. Its order backlog was USD$32.3 billion.

In aerospace, earnings before financing income and expense and income taxes rose to USD$55 million from USDD$52 million. Business aircraft deliveries grew 23 percent in the quarter, largely because of the Learjet and Global families of aircraft.

Aerospace revenues were flat at USD$1.94 billion.

Bombardier delivered 77 aircraft in the quarter, down from 81 a year earlier. Business jet deliveries rose to 53 from 43, while regional aircraft deliveries fell to 24 from 38.