Bombardier rail division drives Q2 improvement; profit, revenue above estimates
An increase in revenue at Bombardier Transportation steers profits forward in Q2, while commercial aircraft and business aircraft divisions slide back
PHOTO: Bombardier
MONTREAL – An increase in revenue at Bombardier Inc.’s rail division helped the company achieve a second-quarter profit of US$70 million and adjusted earnings that were ahead of analyst estimates.
The Montreal-based company’s overall revenue was up three per cent at US$4.26 billion, compared with US$4.14 billion in last year’s second quarter.
Most of the improvement was due to an 11 per cent increase in revenue at Bombardier Transportation, which accounted for US$2.26 billion of the total. Revenue fell at Bombardier’s commercial aircraft and business aircraft divisions.
Net income, which Bombardier reports in U.S. currency, was equal to two cents per share and compared with a year-earlier loss of $243 million or 11 cents per share
On an adjusted basis, Bombardier earned US$87 million or three cents per share.
Analysts had estimated one cent per share of net income and an adjusted loss of one cent per share, according to Thomson Reuters Eikon.
Bombardier concluded a number of key strategic actions in the quarter, including closing the Airbus partnership deal.
Under the partnership, the European aircraft manufacturer acquired a majority 50.01 per cent stake in the C Series commercial jet program effective July 1.
Airbus has since renamed the two models of C Series passenger jets as the A220-100 and A220-300.
