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Bombardier Quarterly Profit Beats Estimates

Bombardier Inc., the world’s third- biggest commercial-jet maker, reported quarterly profit ahead of analysts’ estimates, bolstered by an increase in plane deliveries. Net income in the fiscal third quarter ended Oct. 31 increased to $192 million from $147 million a year earlier, Montreal-based Bombardier said today in a statement. Adjusted profit of 11 cents a share beat the 10-cent average estimate of 19 analysts surveyed by Bloomberg.

Bombardier is working to meet a 2013 target for the commercial debut of the C-Series jetliner while trimming output of its smaller CRJ regional jets as some airlines brace for weaker economic growth. The company, also one of the world’s biggest passenger-train makers, is facing market volatility in the U.S. and Europe, where the majority of rail sales occur.

“Holding off C-Series schedule pressure is foremost” among the company’s challenges, Joseph Nadol, a JPMorgan Chase & Co. analyst, said in a note to clients yesterday that previewed today’s results and an investor meeting scheduled for next week in New York. “Falling commercial aircraft demand, a more drawn- out bizjet recovery, and rail demand in Europe are others.”

Bombardier is seeking orders for its new C-Series airliner, which will compete against the smallest aircraft offered by Airbus SAS and Boeing Co. when it enters service. The company also needs to name a replacement for commercial aircraft unit President Gary Scott, who left in October for family reasons. Comments from aerospace chief Guy Hachey on Oct. 11 that Bombardier is “up against a wall” on the C-Series schedule has stoked speculation there may be a delay.

Source: www.bloomberg.com