Bombardier, which has been spending heavily to bring its new CSeries jet into service, used $808 million in free cash flow in the quarter, up from $424 million a year earlier.
Bombardier is targeting annual sales of $2 billion to $3 billion from the Global 7000 and 8000 programs over a five-year period following the aircraft’s entry into service, according to a March 2014 presentation to investors.
The company said it is working to implement a transformation plan aimed at improving costs and bolster its cash position.
The first of the 7,300nm (13,520km)-range business jets will now be delivered in the second half of 2018 rather than in 2016 as originally scheduled. “These challenges have impacted the programme schedule”, Bellemare says, though adding, “I am confident in our performance of the aircraft and our ability to deliver to the revised schedule”.
Some analysts had suggested a delay was likely, as the plane has yet to make its first flight.
Bombardier announced plans in May to cut about 1,750 business-aircraft jobs due to a slowdown in production of the Global 5000 and 6000 models.
It followed speculation that Bombardier Inc was exploring options about how it could raise money from Bombardier Transportation in order to offset “challenges” within its aircraft business, Bombardier Aerospace.
MONTREAL-Bombardier released its second-quarter results July 30 amid reports – which it subsequently denied – that Siemens and the Canadian transport giant were in preliminary talks surrounding the merger of their rail divisions. Bombardier has not announced a new firm order for the CSeries since last September.
Net income was $125 million, down from $155 million in the second quarter of 2014. One analyst valued Bombardier’s rail assets at roughly $5 billion.
Bombardier in May said it would spin off part of its rail business, a move aimed at shoring up the company’s balance sheet. That compared with a profit of eight cents per share a year ago. Siemens, meanwhile, is set to report earnings on Wednesday that analysts expect will show a profit decline of about 25 per cent.
Bombardier’s shares closed at C$1.95 on the Toronto Stock Exchange on Wednesday.
