Recession still hitting Bombardier
Aerospace giant Bombardier has said the recession is continuing to impact on its business, with 80 orders for business jets cancelled in the second quarter.
The Toronto-based aircraft manufacturer said it made a net profit of $202m (£125m) for the three months to July 31, down from $259m in the same period last year.
Revenues of $4.9bn were in line with a year ago, but the aerospace division’s its aerospace revenues fell to $2.4bn from $2.5bn, hurt by lower deliveries and selling prices for business aircraft.
It recorded a negative 38 orders in the period with 27 new orders of business aircraft and 15 new orders for commercial aircraft outweighed by 80 cancellations.
Aircraft deliveries in the quarter totalled 80, compared to 89 for the same period the previous year.
“We are taking the necessary actions to face the current difficult economic environment, which continues to have an impact on our results”, said Pierre Beaudoin, president and chief executive of Bombardier.
“The aerospace industry as a whole continues to experience challenging conditions. Nevertheless, Bombardier Aerospace increased its market share position in business aircraft.”
Business aircraft are a key part of Bombardier’s operation in Belfast.
Earlier this year Bombardier slashed close to 1,000 full-time and contract jobs.
However, the company has committed to building key components of its new C-Series planes in Belfast.