Turboprop, Bizjet Sales Up As RJ Sales Fall Further

After recent financial troubles, the skies are looking a little brighter for Canada's Bombardier -- as long as the company's bizjets and regional turboprops are flying there. The company announced last week it returned to profitability in the fourth quarter of FY2005.

For the quarter ending January 31, profits rose to $86 million US, up from $56 million for the same period a year before. That helped Bombardier record a profit of $249 million for 2005 -- a much-needed improvement over the $85 million the company lost in 2004.

"When we spoke at this time last year we said we should be profitable this year," Bombardier chief executive Laurent Beaudoin told industry analysts last week. "Well, I am glad to say we are back to profitability and looking forward to improve further from here."

While sales of the company's CRJ-series of regional jet offerings continue to decline (a scenario that likely will not be helped by recent NTSB recommendations concerning electrical fires on the CRJ-200), the business jet versions of those aircraft -- as well as the company's Global Express megajet and Learjets -- continue to be popular, according to the Montreal Gazette.

Furthermore, sales of the Q300 turboprop (above) -- a modernized variant of the venerable Dash-8 -- spiked in 2005, as well.

Bombardier Aerospace delivered 337 aircraft in all during FY2005, up from 329 the previous year. Regional aircraft decreased 26 percent, but business aircraft shot up by 45 percent. Net orders taken during the year also increased by 36 percent, to 210 units.

While admitting the company expects CRJ sales to decline further this year, Bombardier Aerospace president Pierre Beaudoin said he expects about the same number of deliveries in 2006. Bombardier also recently had to take back 100 regional jets, due to continued tough times for North American airlines -- its primary market.

Corporate jets will again help overcome that discrepancy, Beaudoin said. A stretched version of the Q300 is also reportedly in the works, for customers in China and the Middle East.

It's important to note that Bombardier doesn't just make planes; the company also expects profits to grow in 2006 from its recently overhauled rail operation.

FMI: www.bombardier.com