Bombardier Inc., the world’s third- biggest commercial jet maker, said quarterly profit rose 53 percent as sales advanced, and predicted customers for regional jets will hold back amid “economic uncertainty.”
Net income in the three months through July increased to $211 million, from $138 million a year earlier, Montreal-based Bombardier said today in a statement. Adjusted profit of 12 cents a share beat the 10-cent average estimate of 17 analysts surveyed by Bloomberg. Sales gained 17 percent to $4.7 billion.
Bombardier said it’s watching market volatility in the U.S. and Europe, and predicted a “continued lower level of advances from customers than initially anticipated” for this year. Bombardier won 43 net orders for its new CSeries airliner, which will compete against the smallest aircraft offered by Airbus SAS and Boeing Co. (BA) when it enters service in 2013.
“We delivered good results for the second quarter with increased revenues, profitability and EPS,” Chief Executive Officer Pierre Beaudoin said in the statement.
Sales at the aerospace unit rose to $2.1 billion from $1.9 billion, while earnings before interest and tax rose to $105 million. The backlog, or number of unfilled orders, increased to $23 billion compared with $21.1 billion at the end of April.
The company announced its ninth order for the CSeries two weeks ago, from Russian leasing company Ilyushin Finance Co., even as Delta Air Lines Inc. postponed plans to buy 100 jets from either Bombardier or rival Embraer SA until next year.
Gary Scott, Bombardier’s commercial aircraft president, is retiring Oct. 1 to deal with a family member’s illness. The business will be headed by Guy Hachey, president of the aerospace division, until a successor is named, Bombardier said last week.
Sales at the transportation unit, which makes subway cars and locomotives, rose 26 percent to $2.7 billion. The division’s earnings before interest and tax rose to $191 million. The order backlog stood at $33.9 billion at the end of July, compared with $34 billion on April 30.
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