Bombardier’s third-quarter 2017 results – positive outlook for C Series

Bombardier, the Canadian plane and train manufacturer has released third-quarter 2017 financial results, revealing revenues of US$3.8 billion, EBIT before special items of US$165 million and an 8.8 percent EBIT margin for its Business Aircraft sector. Commercial Aircraft EBIT before special terms was as anticipated, in relation the C Series ramp-up plan, at US$495 million.
The company is on track to deliver 135 Business Aircraft by year end, having delivered 31 during the quarter. The Global 7000 aircraft is on schedule for entry-into-service for the second half of 2018. Results show the Business Aircraft sector is on target for an 8 percent EBIT margin before special items for the full year.
October 16 saw the announcement of the partnership with Airbus for the C Series which is anticipated will double the value of the program. 16 aircraft from the Commercial Aircraft division were delivered during the quarter (4 CRJ Series, 7 Q400s and 5 C Series.) Total deliveries including turboprops reached 39 aircraft, with results on track for the delivery of 50 aircraft for the full year.
The company received its largest-ever order for turboprop planes, with SpiceJet placing a firm order for 25 Q400s and purchase rights for another 25 Q400s, at a list price valued of US$1.7 billion.
Further engine delivery delays from Pratt & Whitney have impacted full-year C Series aircraft deliveries, the result being that 8-10 C Series aircraft should be delivered in the final quarter. Overall, revenue for the Commercial Aircraft sector is now estimated at US$2.5 billion for the full year.
The C Series program is gaining greater market acceptance, with one European customer signing a Letter of Intent (LOI) for up to 61 of the new jets – 31 on firm order and options for an additional 30, valued at US$2.4 billion at list price. The LOI is subject to the execution of definitive agreements between both parties, which is expected before year end.
Bombardier also released its 20-year Market Forecast for 2017-2036 for the segment of the market that includes the CRJ Series, Q400 and C Series aircraft. The Company expects this segment of the market, currently at 6,900 aircraft, to double by 2036 to 14,250, driven by fleet retirement and market growth.