Bombardier delays business jet, but CSeries on track

Despite the higher deliveries, Bellemare said the entry into service of the company’s new Global 7000 business jet would be pushed back to second half of 2018.

On an adjusted basis, Bombardier said it earned $145 million or six cents per share, down from $192 million or 10 cents per share a year ago. “We are taking specific action, including the launch of our Bombardier transformation plan, a disciplined approach to cash management, and the strengthening of our leadership team to reshape the company and ensure our long-term success”, the newly-appointed chief said. While Arment estimates development costs of the Global 7000 and 8000 at $1 billion to $1.5 billion, Bombardier hasn’t provided a definitive figure.

The company said earlier this month that it was conducting a “full review” of the Global 7000 and 8000 program, including its schedule. But in May Bombardier said it would cut production of Global 5000 and 6000 jets, citing weak demand from China, Latin America and Russian Federation.

It followed speculation that Bombardier Inc was exploring options about how it could raise money from Bombardier Transportation in order to offset “challenges” within its aircraft business, Bombardier Aerospace. Bombardier did not say what had caused the schedule change, or when the companion Global 8000 would be finished.

The company delivered 47 business aircraft in the quarter, which was nine more than the 38 it delivered in the same period a year ago.

“The Corporation intends to file the required documentation with applicable securities regulators during the fourth quarter of this year, subject to market conditions, with the primary listing venue likely to be Germany, where the business segment is headquartered”, Bombardier said. Revenues for its business jet division increased 12 per cent compared to the same quarter last year, but the company received only 8 new orders, compared to 30 last year. Siemens, meanwhile, is set to report earnings on Wednesday that analysts expect will show a profit decline of about 25 per cent.

Bombardier poured more cold water on the rumours on Wednesday telling CBC News via email that there is no deal in the offing.