CANADA's bombardier has reported third-quarter results that beat analysts' estimates, helped by robust demand for its pricier business jets and aftermarket services.
Corporate jet makers continue battling supply chain challenges to meet demand from wealthy buyers, following a surge in orders and private flying during the pandemic.
But economic headwinds, and recent signs of flattening demand are raising investor concerns, even as some plane makers aim to produce more jets, reports Reuters.
North American flight activity fell 4.2 per cent in September 2023 compared with the same month a year earlier, according to Argus International.
Bombardier Chief Executive Eric Martel told reporters that the company is planning for more deliveries in 2024, without disclosing a specific figure, compared with this year's target of more than 138 aircraft.
Montreal-based Bombardier is targeting deliveries of 150 jets for 2025.
Bombardier's order backlog fell to US$14.7 billion at the end of the third quarter, from $14.9 billion at the end of the second quarter. It has increased inventories to support higher deliveries compared with 123 in 2022.
'Supply chain is difficult, but we are not using it as an excuse for missing our commitments,' CFO Bart Demosky told an analyst call.
Last month, Cessna business jet maker Textron (TXT.N) raised its annual profit outlook and said it expects higher deliveries in 2024 as supply chain improves.
Bombardier generated $80 million in free cash, a metric closely watched by investors, in the third quarter, compared with $52 million a year earlier.
Revenue from Bombardier's aftermarket business, which provides maintenance services, rose 11 per cent to $414 million. The company posted revenue of $1.86 billion beating expectations of $1.75 billion, as it delivered six more business jets in the quarter than a year earlier.
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Corporate jet makers continue battling supply chain challenges to meet demand from wealthy buyers, following a surge in orders and private flying during the pandemic.
But economic headwinds, and recent signs of flattening demand are raising investor concerns, even as some plane makers aim to produce more jets, reports Reuters.
North American flight activity fell 4.2 per cent in September 2023 compared with the same month a year earlier, according to Argus International.
Bombardier Chief Executive Eric Martel told reporters that the company is planning for more deliveries in 2024, without disclosing a specific figure, compared with this year's target of more than 138 aircraft.
Montreal-based Bombardier is targeting deliveries of 150 jets for 2025.
Bombardier's order backlog fell to US$14.7 billion at the end of the third quarter, from $14.9 billion at the end of the second quarter. It has increased inventories to support higher deliveries compared with 123 in 2022.
'Supply chain is difficult, but we are not using it as an excuse for missing our commitments,' CFO Bart Demosky told an analyst call.
Last month, Cessna business jet maker Textron (TXT.N) raised its annual profit outlook and said it expects higher deliveries in 2024 as supply chain improves.
Bombardier generated $80 million in free cash, a metric closely watched by investors, in the third quarter, compared with $52 million a year earlier.
Revenue from Bombardier's aftermarket business, which provides maintenance services, rose 11 per cent to $414 million. The company posted revenue of $1.86 billion beating expectations of $1.75 billion, as it delivered six more business jets in the quarter than a year earlier.
SeaNews Turkey
