Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Bombardier sees higher 2021 revenue as business jet travel rebounds; shares jump

08/05/2021 | 12:01pm EDT
FILE PHOTO: FILE PHOTO: Bombardier Global 7500 business jet is seen at the Asian Business Aviation Conference and Exhibition (ABACE) in Shanghai

(Reuters) - Bombardier Inc said on Thursday it would generate higher revenue and use less cash in 2021, helped by a rebound in business jet flights and demand for aircraft after the pandemic sapped orders last year, driving up its shares as much as 8%.

Supply chain challenges that have hit aerospace globally would not prevent Bombardier from meeting its 2021 target of 120 business jet deliveries, Chief Executive Éric Martel told reporters.

Bombardier is close to being sold out of all aircraft in 2021, with Martel telling analysts earlier he expects orders to pick up for the company's flagship Global 7500 jet "between now and year-end."

According to FlightAware data, business jet flights rose 23% in the week beginning July 21 over 2019 levels in the United States, the world's largest market for corporate aviation.

Separately, Bombardier also disclosed that the Royal Canadian Mounted Police would join a global investigation into suspected bribery related to decade-old sales of company jets to Garuda Indonesia.

Bombardier shares were last up 5% at C$1.58.

Rivals Textron and General Dynamics Corp's Gulfstream Aerospace are raising production to meet higher demand.

Asked whether Bombardier was also considering higher production rates, Martel said the company is instead focused on increasing its $10.7 billion order backlog.

Free cash flow usage for 2021, a metric closely watched by investors, is now expected to be better than $300 million, compared with previous guidance of $500 million.

Full-year revenue is expected to exceed $5.8 billion, up from more than $5.6 billion.

Business jet revenue for the three months ended June 30 jumped 50% to $1.5 billion, compared with the $1.3 billion that analysts were expecting, according to Refinitiv.

But Bombardier posted an adjusted net loss of $137 million, or 6 cents per share, for the second quarter.

Bombardier, the latest aerospace group to face scrutiny over past deals, has previously said the U.S. Department of Justice and Britain's Serious Fraud Office are investigating the acquisition and lease of its CRJ1000 aircraft to Garuda between 2011 and 2012.

"We are participating in the investigation, we support the investigation," Martel told reporters.

(Reporting by Sanjana Shivdas in Bengaluru and Allison Lampert in Montreal; Editing by Kirsten Donovan and Steve Orlofsky)

By Allison Lampert and Sanjana Shivdas

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BOMBARDIER INC. 0.98% 2.07 Delayed Quote.331.25%
PT. GARUDA INDONESIA (PERSERO) TBK -1.77% 222 End-of-day quote.-44.78%
Latest news "Companies"
03:46aSMART EY : Smart Eye
03:45aEuro zone inflation expectations hit highest level in years
03:44aNILÖRNGRUPPEN : Nilorn Interim Report Q3, 2021
03:44aBEKAERT : Purchase and sale of shares in the context of the liquidity agreement  22 Oct 2021
03:44aKNM BERHAD : OTHERSAward of Contract by Bechtel International, Inc. to KNM Group Berhad's Indirect Wholly-Owned Subsidiary, FBM Hudson Italiana SpA amounting to approximately RM111 million
03:44aESSITY AKTIEBOLAG : Press Release Interim Report Q3 2021
03:44aHENKEL : Digital talent program enters second round
03:44aPrime minister imran khan chaired a meeting on integrated agriculture and development plan for kpk, especially chashma right bank canal (crbc)
03:44aDACIAN GOLD : 2021 Annual Report
03:44aAMBUJA CEMENTS : Cement Foundation's Dadri team recognised for their contributions towards water conservation, sanitation and hygiene
Latest news "Companies"