Business & GA, Commercial

Bombardier Aerospace Sees 29 Percent Revenue Increase, Workforce Reduction for Q3 2013

By Juliet Van Wagenen | October 31, 2014
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[Avionics Today 10-31-2014] Bombardier Aerospace’s revenues increased by 29 percent to reach $2.6 billion for the three-month period ended Sept. 30, 2014, compared to $2 billion for the same period last fiscal year.

Financing income and income taxes (EBIT) totaled $74 million, or 2.9 percent of revenues, for the third quarter, compared to $86 million, or 4.3 percent, for the same period last fiscal year. Bombardier Aerospace delivered a total of 71 aircraft during the third quarter, compared to 45 for the same period 2013.

In September, the CSeries aircraft resumed flight testing with more than 120 hours of flight recorded since then by two Flight Test Vehicles (FTV). FTV2 is now operating its fly-by-wire in normal mode and flight testing continues as planned. The Entry-Into-Service (EIS) for the CS100 aircraft is targeted for the second half of 2015 and the CS300 aircraft’s EIS will follow approximately six months afterwards.
 
Commercial aircraft received a firm order for 40 CS300 aircraft with options for an additional 10 CS300 aircraft from a wholly owned affiliate of Macquarie AirFinance. The firm order is valued at $3.1 billion based on list price. Furthermore, subsequent to the end of the quarter, the company launched the new Challenger 650 aircraft; its EIS is scheduled for 2015.

As part of the new organizational structure announced on July 23, a workforce reduction took place over the past weeks and a restructuring charge of $63 million was recorded as a special item. This workforce reduction is expected to generate approximately $200 million in annual cost savings.

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