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Bombardier maintains annual guidance in Q2 results despite strike delays
July 25, 2024 By The Canadian Press
Bombardier Global 7500. (Photo: Bombardier) Bombardier Inc. is playing catch-up after a strike in early July but doesn’t expect the 11 days of lost production to affect its annual guidance, the manufacturer said.
“Negotiations are getting more complex and frankly harder,” chief executive Éric Martel said Thursday on an analyst call after releasing second-quarter results.
“We came to a fair solution that supports our people as well as the company’s long-term goals.”
The company says it delivered 39 aircraft for the quarter and remains on track to reach its planned guidance for the year.
“As we move through the third and fourth quarter, we are working to address a bit of scheduled pressure,” said Martel.
Along with labour issues, supply chains continue to be a headwind, he said.
Despite the challenges, the company reported a profit of US$19 million, up from a loss of US$35 million a year earlier, as its revenue grew 32 per cent, including services revenue up 18 per cent compared with a year ago.
The Montreal-based aircraft maker, which keeps its books in U.S. dollars, says the profit amounted to 12 cents US per diluted share for the quarter ended June 30, up from a loss of 44 cents US per diluted share in the same quarter last year.
Demand was driven by rising interest in the Middle East, Asia Pacific and other emerging markets, while it was steady in North America.
“We saw some softness in some traditional regions, but we’re ready to close deals and seize opportunities in emerging regions,” said Martel.
Revenue totalled US$2.20 billion, up from US$1.68 billion.
On an adjusted basis, Bombardier says it earned US$1.04 per diluted share, up from an adjusted profit of 72 cents US per diluted share a year earlier.
Bombardier says its order backlog stood at US$14.9 billion at June 30, up from US$14.2 billion at Dec. 31, 2023.
The stable backlog, despite a meaningful uptick in deliveries was a key takeaway from results, said RBC analyst James McGarragle in a note.
He said it “points to a robust demand backdrop which we believe positions Bombardier well to execute on its 2025 targets.”
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This report by The Canadian Press was first published July 25, 2024.
