UPDATE 3-Bombardier profit rises, more job cuts planned

* Q4 EPS $0.17 vs $0.12 a year earlier

* Cutting 10 percent of 30,000 aerospace jobs

* Business plane deliveries seen 25 percent lower

* Shares up 10 percent as transportation revenue rises (Adds detail from conference call, updates stock price. In U.S. dollars unless noted)

By Susan Taylor

OTTAWA, April 2 (Reuters) - Bombardier Inc (BBDb.TO) reported a 42 percent jump in quarterly profit on Thursday on a strong performance by its transportation arm even as recession led the company to scale back expected business-jet deliveries and announce sweeping job cuts in its aerospace unit.

Shares of Bombardier climbed 10 percent after the world's No. 1 passenger train maker and No. 3 civil aircraft manufacturer said transportation revenues rose 12.5 percent in the quarter ended Jan. 31, offsetting a drop by its aerospace unit. Earnings for the quarter easily topped the average estimate of analysts.

The Montreal-based company said it would lay off 3,000 workers in Canada, Northern Ireland, United States and Mexico at the end of 2009, resulting in severance costs of about $30 million. The cuts are on top of nearly 1,400 layoffs announced Feb. 5 when the company said it would reduce Learjet and Challenger plane production.

"It appears that while the aerospace group is looking at a difficult market over the next year or two, the transportation business is moving from strength to strength," said Dundee Capital Markets analyst Richard Stoneman.

As evidence, he pointed to the company's announcement on Thursday that it had won a 188 million euro ($249 million) order from National Express in England to supply and maintain 30 Electrostar trains.

Demand for business planes deteriorated rapidly in the last six months of 2008 and is likely to remain weak for the foreseeable future, Bombardier said.

"The extent and the severity of the global downturn are unknown and the situation remains volatile," Chief Executive Pierre Beaudoin said during a conference call.

The company now expects to deliver 25 percent fewer business planes this fiscal year, but repeated its forecast for a 10 percent increase in commercial plane delivery.

PROFIT, SALES HIGHER

Net income rose 42 percent to $309 million, or 17 cents a share, in the fourth quarter ended Jan. 31 from $218 million, or 12 cents, a year earlier.

Revenue rose to $5.4 billion from $5.3 billion.