UPDATE 2-Bombardier revenue rises; CSeries faces delivery delay
* 2nd-qtr net earnings/shr $0.10 vs $0.08 year earlier
* Revenue rises 8 pct
* Entry-into-service expected 12 months from first flight
By Solarina Ho
Aug 1 (Reuters) - Canadian plane and train maker Bombardier Inc reported a 22 percent rise in second-quarter profit on Thursday as its train business grew, but pushed back the date when its all-new C-Series plane will be ready for delivery.
Bombardier Inc, the world's fourth largest planemaker and largest trainmaker, insisted the new plane would still enter service a year from the first flight. It has already pushed back that first flight three times and now says it is due to fly in the coming weeks.
"So we have a delay of two months from first flight, the entry into service will be two months delayed." Chief Executive Pierre Beaudoin said on a conference call with analysts and media.
The $3.4 billion CSeries program is Bombardier's ticket to the larger commercial jet market dominated by Boeing Co and Airbus. The CSeries is a single-aisle aircraft family with seating for up to 160 passengers.
Many industry observers have been skeptical about the company's target to put the plane into service by mid-2014, although Lufthansa, the CSeries launch customer, said last week it was not overly concerned by the latest delay.
"We have some buffer for introduction of the aircraft," said Nils Haupt, a spokesman for Lufthansa. "We think that we will have the aircraft in service in the second half of 2014. So that's what we still think."
Bombardier shares were little changed at C$4.95 after rising more than 2 percent earlier. The shares are up some 25 percent since the company unveiled the CSeries test plane in early March.
Bombardier executives said the three delays, one from last year and two in 2013, have not had a material impact on costs.
Bombardier's second-quarter net profit rose to $180 million, or 10 cents per share, from $147 million, or 8 cents per share, a year earlier. Adjusted to exclude one-off items, the company reported income of $158 million, or 9 cents per share.
Revenue rose 8 percent to $4.43 billion.
"While there are clearly still risks to the CSeries program that will likely keep the stock fairly volatile, the fundamentals in the business jet market and increasingly for transportation are positive," said Cameron Doerksen, an analyst with National Bank Financial.
The company reported a record order backlog of $65.5 billion at the end of June.
Revenue in Bombardier's aerospace unit was flat at $2.26 billion in the quarter. The backlog was $33.4 billion as of June 30, compared with $32.9 billion at the end of December.
It delivered 57 aircraft during the quarter, compared with 62 during the same period a year ago.
Revenue in the transportation unit, which makes trains, rose 22 percent to $2.18 billion. The order backlog in the unit was $32.1 billion as of June 30, compared with $32.0 billion at the end December.
- Radar showed missing plane may have turned back: Malaysia military
- Malaysian jetliner may have turned back before vanishing |
- Malaysian plane presumed crashed; questions over false IDs |
- Malaysian jet's disappearance among rarest of aviation disasters