Nov 3, 2022
Bombardier says it's prepared for unstable market ahead, reports US$27M Q3 profit
The Canadian Press
A growing backlog proves Bombardier is well-positioned to manage downturn: CEO
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Bombardier Inc. says it is prepared for an unstable market ahead as the aircraft manufacturer reported a third-quarter profit compared with a loss a year earlier.
Chief executive Eric Martel told a conference call to discuss the Montreal-based company's latest results Thursday that it is "well-equipped" for any market condition ahead.
"All in all, we are well-positioned to maintain our growth curve steadily as outlined in our investor data this year toward 2025," he said.
Chief financial officer Bart Demosky said that it was an "exciting time" for the company despite a possible recession, as an increased number of backlogged orders have provided "predictability and viability" into 2023.
The company said its plan for expansion will continue as normal, with a 15 to 20 per cent production increase next year.
The maker of private jets, which keeps its books in U.S. dollars, said Thursday its net income amounted to US$27 million or 20 cents per diluted share for the quarter ended Sept. 30. The results compared with a loss of US$377 million or US$3.98 per diluted share in the third quarter of 2021.
Debt repayment remains the top priority, said Martel, as Bombardier paid off $100 million in debt, well ahead of 2025 net debt objectives.
The aircraft manufacturer's gross debt has been reduced to $6.2 billion, and the company is now approaching annualized savings of $300 million in cash interest via debt reduction actions, Demosky said.
"We have remained active on debt management since our last earnings call," Demosky said. "We are not done here, and we expect to continue being active and opportunistic on our debt repayment in the coming quarters."
Revenue for the quarter totalled US$1.46 billion, up from US$1.45 billion in the same quarter last year.
On an adjusted basis, Bombardier said it lost 10 cents per share in its latest quarter compared with an adjusted loss of US$1.05 per share a year earlier.
Analysts on average had expected a loss of 48 cents per share and $1.6 billion in revenue, according to estimates compiled by financial markets data firm Refinitiv.
"We are in a great place entering Q4, and we are absolutely on track to meet or exceed our 2022 full-year guidance," Demosky said.
This report by The Canadian Press was first published Nov. 3, 2022.
