* Says CSeries tests progressing well
* Adjusted net income $156 mln vs $150 mln year earlier
* First-qtr revenue rises 25 pct
* Free cash flow usage $590 mln vs $695 mln a year earlier
By Bhaswati Mukhopadhyay and Solarina Ho
May 9 Bombardier Inc, the world's No.
4 commercial aircraft maker, said its CSeries jetliner was on
track to make its first flight in June as it reported a 25
percent jump in first-quarter revenue on robust growth at its
Earnings per share were in line with consensus, but analysts
said the details of the results were better than expected and
bode well for Bombardier's outlook and share price, which rose
more than 5.4 percent to C$4.46 in early trading on the Toronto
The new CSeries - Bombardier's ticket into the larger
commercial jet market - is a single-aisle plane with seating for
up to 160 passengers.
It represents the Canadian company's attempt to break into
the lower end of the lucrative 100-to-200-seat aircraft market
dominated by Boeing Co and Airbus.
Bombardier said on Thursday it had commitments for 388
CSeries aircraft as of March 31, including 145 firm orders from
nine customers in eight countries.
This update reflected a small order cancellation for three
CSeries planes due to the financial difficulties of an
undisclosed customer. National Bank Financial analyst Cameron
Doerksen called the change "immaterial" for the program.
The CSeries tests are progressing well, Chief Executive
Pierre Beaudoin said in a statement.
The aircraft claims a 15 percent cash operating cost
advantage and 20 percent fuel burn advantage over the Boeing and
Airbus models. Its airframe is lighter as well.
"We believe (CSeries progress) will continue to help to lift
sentiment - particularly if it is matched with new orders going
into the Paris Air Show next month," analyst Walter Spracklin of
RBC Capital Markets said in a note to clients.
The Montreal-based company is under pressure to meet its
targets of 300 firm orders and 20 customers by mid-2014.
Bombardier, which is also the world's biggest train
manufacturer, reported a 5 percent drop in first-quarter net
profit to $148 million, or 8 cents per share.
On an adjusted basis, net income rose 4 percent to $156
million, or 8 cents per share, in line with analysts' average
estimate, according to Thomson Reuters I/B/E/S.
Total revenue rose to $4.3 billion.
Revenue in Bombardier's aerospace unit, which makes
business, commercial and amphibious aircraft, jumped 53 percent
to $2.3 billion. Bombardier said backlog at the aerospace unit
was $32 billion as of March 31, compared with $32.9 billion as
of Dec. 31.
Bombardier delivered a total of 53 aircraft in the quarter,
up from 37 a year earlier.
Revenue in the transportation unit, which makes trains, rose
15 percent to $2.1 billion.
The company said it expected an increase in transportation
revenue over the course of the year, but did not provide a
Bombardier said the order backlog in its transportation unit
was $31.0 billion as of March 31, compared with $32.0 billion as
at Dec. 31.
Free cash flow usage fell to $590 million from $695 million
a year earlier. Bombardier defines free cash flow usage as cash
flow from operating activities less net additions to property,
plant and equipment and intangible assets.