Bombardier Suffers From Airline Weakness

Article Excerpt

BOMBARDIER INC. (Toronto symbols BBD.A $3.91 and BBD.B $3.90; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Extra risk) is the world’s third-largest maker of commercial passenger aircraft behind Boeing and Airbus. The aerospace unit supplies roughly 55% of Bombardier’s revenue, and 60% of its profit. The remaining revenue and earnings come from Bombardier’s transportation division, which is the world’s largest maker of passenger railway cars. Overseas customers account for 95% of Bombardier’s total revenue. In its third fiscal quarter ended October 31, 2006, Bombardier earned $0.03 a share (total $53 million) from continuing operations (all amounts except share price in U.S. dollars). It lost nil per share ($1 million) in the year-earlier quarter, which included a $25 million pre-tax restructuring charge. Revenue rose 3.0%, to $3.4 billion from $3.3 billion. The company delivered 73 aircraft in the most recent quarter compared with 74 a year earlier. However, a strike cut deliveries of its fast-selling business jets by 13% in the quarter. Bombardier…

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