Profit at Canada's Bombardier nearly doubled in the fourth quarter, as the result of increased deliveries of business and regional jets and an income tax benefit.
Bombardier, the world's biggest passenger train maker and No. 3 civil aircraft manufacturer, said on Thursday it earned USD$218 million in the quarter ended January 31. That was up from a profit of USD$112 million a year earlier.
The profit margin in Bombardier's aerospace group rose to 6.7 percent from 4.8 percent a year earlier.
The Montreal-based company said it expects to hit its target of 8 percent in fiscal 2009, a year earlier than planned, though that advance stems largely from an accounting change.
Revenue rose 19.2 percent to USD$5.27 billion from USD$4.42 billion, mainly on stronger business and regional jet deliveries.
Bombardier's order backlog at January 31 was at record levels, reaching USD$22.7 billion in aerospace, up 72 percent from $13.2 billion.
Jacques Klavafian, an analyst at Research Capital, said he expects Bombardier to boost its aerospace backlog further this year, with a book-to-build ratio of more than 1.5-to-1.
"We believe the higher aerospace backlog will help margins, partially offset by a strong Canadian dollar," he said in a research note.
Aircraft deliveries rose to 361 for the year from 326 a year earlier, aided by a surge in business jet business. In the quarter, deliveries rose to 115 from 101.
Bombardier expects deliveries to increase this year for business jets, and to be flat for regional jets.
In the regional jet sector, the main competitor has traditionally been Brazil's Embraer, but the Canadian firm will face a new rival by 2013 when Mitsubishi Heavy Industries rolls out what would be Japan's first passenger jet.
The 70- to 90-seat Mitsubishi aircraft would compete with Bombardier's flagship regional jet offering.
"We think we have the experience and know-how to remain the leader in this industry. It may mean additional investment," Pierre Beduin, president of Bombardier Aerospace, said on Thursday.
Bombardier did not offer an update on progress in its search for launch customers for its 110- to 130-seat CSeries airliner, which would enter service by 2013 in a market sector dominated by Boeing and Airbus.
There has been speculation it may want to make a big splash for the USD$3.2 billion CSeries development plan by unveiling orders at the Farnborough International Air Show in mid-July.
Meantime, the company expects to expand its role in China's plane and train industries through joint ventures and other arrangements with Chinese firms.
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