Bombardier: Q1 operating profit down - but stock rises

(CercleFinance.com) - On Monday Bombardier reported a decline in Q1 operating profit, despite improved sales and profit margins.


The Canadian aircraft manufacturer reported adjusted EBIT of 19 million dollars for the first three months of the year, less than a third of the 60 million dollars in Q1 2020.

Preliminary data also showed revenues that were up 18% to 1.3 billion dollars.

Bombardier - which has now fully refocused on business jets - estimates that its deliveries will reach 26 units in the current quarter and says it still plans to deliver between 110 and 120 aircraft this year.

The Montreal-based group also notes that its cost-cutting initiatives have begun to contribute to improved results, and that strong demand for its Global 7500 jets has also supported significant margin expansion.

Bombardier - which will release its final financial results on Thursday 6 May - was up 5% Monday on the Toronto Stock Exchange after the figures were released.


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