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Bombardier quarterly earnings increase

Last Thursday, Bombardier announced that the company’s quarterly earnings doubled, boosted by an 8 percent increase in revenue, but new orders decreased due to unstable economic conditions that cripple demand.

The Montreal-based aircraft manufacturer’s income rose from $91 million to $245 million through the January and October. During the same time frame, revenue ascended from $4.2 billion to $4.6 billion. Bombardier stated that it has achieved its ideal aerospace profit margin before interest and taxes. Currently, the company is aiming for a 12 percent increase by the fiscal year of 2013.

“The surprise out of this is that they’ve opted to increase the target on margins,” commented Richard Stoneman—an analyst from Dundee Securities Corp. Stoneman continues, “That suggests that earnings are going to increase.”

But Bombardier is also aware of the difficulties and challenges set for the company in 2009. As asserted by Pierre Beaudoin, a chief executive from Bombardier, “Although it is too early to assess the severity and duration of the economic slowdown and its potential impact on both businesses, we are confident in our future, having taken significant steps in the past few years to strengthen our operations and financial position.”