Bombardier Q1 hit by weaker aircraft sector

Bombardier Inc. on Wednesday posted lower first-quarter revenues and profits as the company said the poor economy hit its aerospace division.

The Montreal-based company said it made $158 million, or nine cents a share, on revenues of $4.5 billion in the quarter that ended April 30. In the same quarter of last year, the company made $229 million, or 12 cents a share, on revenue of $4.8 billion. All figures are in U.S. dollars.

"The severe recession affecting most economies worldwide has continued to have a negative impact on our first quarter financial results," said Bombardier president and CEO Pierre Beaudoin.

"At Bombardier Aerospace, although overall deliveries have held up relatively well during the quarter, cancellations in business aircraft have outpaced the level of new orders," Beaudoin said.

Customers ordered 20 business aircraft, but cancelled 61 other orders. A total of 50 commercial aircraft were ordered during the quarter.

Bombardier Aerospace posted revenue of $2.2 billion, down from $2.4 billion for the same period the previous year, although the company said revenues actually rose by $281 million after negative currency exchange is factored out.

"For the rail industry, the fundamentals remain strong and the recession is not currently expected to have a significant impact," said Beaudoin.