Weak Sales Could Delay Proposed New Jet

Article Excerpt

BOMBARDIER INC. (Toronto symbols BBD.MV.A $2.43 and BBD.SV.B $2.42; SI Rating: Extra risk) lost $9 million in its third fiscal quarter ended October 31, 2005, compared with a profit of $10 million a year earlier (all amounts except share price in U.S. dollars). On a per-share basis, the company lost $0.01 compared with nil. The latest results included $25 million to restructure Bombardier’s railcar division; the year-earlier period includes $43 million in one-time charges. Bombardier delivered 74 aircraft in the latest quarter, up from 69 a year earlier. But revenue fell 8.3%, to $3.3 billion from $3.6 billion. That’s because it’s selling more business jets, which cost less than its larger regional planes. Revenue at the rail unit fell 21%, but orders more than doubled. The company is still deciding whether to develop a new, larger regional jet. That would cost about $2 billion, and help Bombardier compete with Brazil’s Embraer, its chief rival. However, demand for the new plane could be…

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