Bombardier Q4 adjusted income falls, misses analyst estimates

MONTREAL – Bombardier Inc. (TSX:BBD.B) reports it had US$129 million of adjusted net income, or seven cents per share, in the fourth quarter — down from $181 million for a year earlier and four cents below estimates.

The Montreal-based aerospace and rail equipment manufacturer says its revenue was up year-over-year, rising to US$5.3 billion for the three months ended Dec. 31, up from $4.6 billion a year earlier

Bombardier’s revenue was slightly better than expected but earnings missed the general estimate of 11 cents per share, according to data compiled by Thomson Reuters.

The company’s net income under standard accounting, before adjustments, was $97 million or five cents per share, which compared with a year-earlier loss of $4 million or one cent per share.

The results are the first since the company again delayed the entry into service of its CSeries commercial aircraft by up to two years from the original date to the second half of 2015 and announced the layoff of 1,700 aerospace workers in North America.

Analysts have raised concerns about whether the delay will cause a cash crunch for the Montreal-based company and force it to issue more shares or seek more funding.

Following an order last weekend for three CS300 aircraft from an existing unnamed customer, Bombardier has booked orders and commitments for 445 CSeries aircraft, including firm orders for 201 CSeries aircraft from 17 customers. Bombardier aims to have at least 300 firm orders by first delivery.

On the rail side of the business, Bombardier Transportation has announced several contracts, including a US$1.6-billion deal to supply trains and a depot for London’s transportation system and a US$2.7-billion contract to supply rail cars to be manufactured in India for Australia’s State of Queensland.

Analysts expect the company will benefit from several opportunities around the world throughout 2014, including six new projects in Mexico.

The world’s only manufacturer of both planes and trains has nearly 72,000 employees around the world