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Bombardier profits fall but revenue remains steady

Bombardier Inc. said that its profits fell by 25 percent during the third quarter, triggered by harsh economic conditions.

The company’s CEO, Pierre Beaudoin, says that economic conditions remain difficult and it has affected its activities and financial results, especially for the company’s aerospace division.

Beaudoin also said that its rail division has continued to improve its revenues, profitability, and order intake. 

The company said that earnings of Bombardier shareholders fell by $167 million, which marked a decrease compared to last year’s quarter earnings.

The revenue had little movement and remained at $4.6 billion.

Bombardier said it delivered 61 aircraft this quarter, a decrease compared to 80 in 2008. However, the company said that it has received and order for 22 jets from American Eagle—a solid order, which the company hopes to gain momentum from.

“This would be a major order for us at any time, but achieving it during the prevailing tough economic times makes it all the more significant,” explained Gary Scott, president of Bombardier’s commercial aircraft unit.

Last week, the company announced that there will be about 700 layoffs, but they promised to decrease that number by this week.