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3: Bombardier (Shorts)

Plane maker suffers in a turbulent market

Monday, 23 April 2007

The results for the year 2005/6 showed a slight deterioration in the aerospace company’s profit after tax due principally to the continued uncertainty in the regional aircraft market.

This reduction was partly offset by an improving market for business jets, which continued last year with Bombardier recording the third consecutive year increase in deliveries of business aircraft.

Bombardier-Shorts in Belfast plays a major role in all of the Canadian parent company’s business jet families including the newest intercontinental Bombardier Challenger 605 which had its first delivery last January.

Demand continued to increase too for the compa-ny’s cost-efficient 78-seat Q400 turboprop. During the year Belfast acquired significant new work on the Q400 fuselage after work was transferred from overseas.

The regional jet market continued to be challenging.

Last year Bombardier realigned production rates of the CRJ700 and 900 regional jets with current market demand. This led to a reduction in manpower both in Belfast and Canada.

But the recent launch of the 100-seat CRJ1000, in which Belfast hopes to be involved, is a vote of confidence in this market.

The Belfast plant is continuing to focus on improving its competitiveness and is implementing lean manufacturing to help it do this.

As part of developing its capabilities, it has introduced a new advanced composite process in Dunmurry and opened a new repair plant as part of its expanding customer support business. In December it announced its leadership of the wing structures team in a major national research and development programme which is aimed at developing technologies to lead to a new generation of aircraft wings.

The company’s Belfast plant is now involved in 11 different fuselage programmes, in addition to engine nacelles and other aircraft structures.

Bombardier says it continues to explore other opportunities. It may develop a new family of aircraft, the C Series.

Profile

Vice-president and general manager: Michael Ryan

Employment: 5,330

Turnover: £447.1m

Profit: £37.3m

Airport Road, Belfast BT3 9DZ Tel: 028 9045 8444 Fax: 028 9073 3396

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