bombardiers jet group flies cover for profits
Amsnow
In the fourth quarter, sales of Bombardier's Canadair Regional Jet accounted for the bulk of revenues and profits.
Fourth-quarter revenues at the recreational products division, which makes snowmobiles, all-terrain vehicles, personal watercraft and outboard motors, rose 21 percent.
Bombardier Aerospace revenues were up 7 percent from a year earlier, mainly because of a change in the mix of new aircraft deliveries and higher sales of used aircraft.
The company delivered 127 aircraft in the quarter, down from 131 a year earlier. That number included 51 business aircraft, 75 regional aircraft and one amphibious plane.
For the year, Bombardier delivered 370 aircraft, as it did in the previous year. It expects to deliver the same number this fiscal year, including 145 of its 50-seat jets, 45 70-seaters, 35 turboprops and 140 business jets.
The stock hit a 52-week low of C$9.19 in early November, mainly on concerns that a slumping airline sector in the wake of the Sept. 11 attacks would crimp aircraft sales.
Commenting on the company's results, President and Chief Executive Officer, Robert E. Brown stated: "We had a strong fourth quarter, which allowed us to meet our targeted year-end results… For the fiscal year, in spite of the slowing economy and the aftermath of Sept. 11 events, Bombardier has increased its revenues by 36% and its income before special items, income taxes and goodwill amortization by 17%. These results show that the actions we took to protect Bombardier's interests were the right ones. We moved rapidly to make a number of difficult but necessary decisions: modifying the production rate of most of our aircraft programs, adjusting our employment levels and significantly reducing Bombardier Capital's risk profile by withdrawing from retail loan portfolios. We also improved our geographic and product diversification with the acquisition of… assets related to the Evinrude and Johnson outboard engines.
"Our performance demonstrates once again how the diversity of our markets and of our products and services, along with our operational efficiency, constitute a sound approach to alleviate the impact of negative economic cycles… With our backlog of orders in aerospace and transportation, our performance in recreational products, our focused strategy in financial services and the consolidation of our leadership in all our activities, we are facing the future with confidence and determination."