Bombardier's commercial aviation division in £186m return to profits
Bombardier's commercial aircraft division has reported a pre-tax profit of $226m (£186m) in the second quarter of 2019, reversing a $668m (£550m) loss posted in the same period last year, as it continued its move away from the sector.
Announcing a 9% rise in consolidated revenues to $4.3bn (£3.9bn), the Canadian group's chief executive Alain Bellemare said the strategy of offloading its loss-making commercial aviation interests was paying off.
Bombardier sold 50.1% of its C-series programme, now the A220, to Airbus 13 months ago. And in recent months, it has moved to off-load its Q400 and CRJ aircraft programmes, ultimately taking it closer to a complete exit from commercial aviation. The complete wings and fuselage components for the A220 are exclusively made within Bombardier's Northern Ireland operation.
In May, the group announced its plan to sell its aerostructures and engineering services operation in Belfast and Morocco, as part of the move to focus the company on trains and business jets. Last Friday, Bombardier said revenues within its aerostructures and engineering services division grew 24% year-over-year to $565m (£465m) as a result of the ramp-up of the A220 and Global 7500 business jet programmes.
"The corporation continues to pursue the divestiture of its Belfast and Morocco aerostructures businesses as it focuses its aerostructures activities around the core capabilities in Montreal, Mexico and the newly acquired Global 7500 wing operations in Texas," said the company. In June, Bombardier confirmed that it will sell its regional jet programme to Japanese group Mitsubishi Heavy Industries. The central fuselage of the CRJ aircraft series is designed and manufactured in Belfast.
Commenting on the performance, Mr Bellemare said: "With the closing of Q400 transaction and the agreement to sell the CRJ programme, our three under-performing commercial aircraft programmes have been successfully addressed.
"This allows us to full focus on business aviation."
Bombardier's business aircraft division also announced a profit of $84m (£69m) in the second quarter, down 22% from $108m (£89m) from the same period in 2018.