Bombardier’s quarterly earnings beat estimates of demand for enterprise jets

MONTREAL (Reuters) – Canada’s Bombardier Corp on Thursday reported better-than-expected quarterly earnings and better income, supported by demand for pricier enterprise jets regardless of provide chain pressures.

The Montreal-based enterprise jet maker reported a second-quarter revenue of $10 million from persevering with operations, in comparison with a lack of $109 million.

The jet makers’ outcomes have been buoyed by sturdy demand from the rich for personal flights over the previous few quarters, however firms are grappling with provide chain challenges which can be making it tough to ship the jets.

Final month, Plane maker Gulfstream Corp. Textron Inc raised its full-year earnings forecast primarily based on sturdy plane pricing.

Nonetheless, there are early indicators that demand could also be leveling off. Bombardier stated Thursday that the backlog on the finish of June was up simply 0.7% at $14.9 billion in comparison with the top of March.

On a share foundation, adjusted revenue for the quarter was 72 cents, in comparison with a lack of 48 cents within the prior 12 months. Analysts surveyed by Refinitiv had anticipated a revenue of 28 cents per share.

Income rose 8% to $1.68 billion, consistent with expectations.

Bombardier reported money burn of $222 million in comparison with free money circulate of $341 million a 12 months in the past, as a result of capital expenditures and a working capital buildup to help greater plane deliveries within the second half of 2023.

(Reporting by Alison Lambert in Montreal and Abhijith Janappavaram in Bengaluru; Modifying by Soumyadib Chakrabarti)