Latest news with #ÉricMartel
Hamilton Spectator
01-05-2025
- Business
- Hamilton Spectator
Bombardier buoyant despite trade hurdles, forecasts big demand for business jets
MONTREAL - In the face of tariffs, trade uncertainty and a potential recession, Éric Martel is feeling upbeat. The CEO of Bombardier Inc. pointed on Thursday to the business jet maker's 'strong start to the year' and a bright financial outlook that foresees higher revenue, profits and plane deliveries this year. The Montreal-based company expects to crank out more than 150 aircraft in 2025 versus 146 last year. It also anticipates a revenue boost of at least seven per cent to more than US$9.25 billion and an adjusted earnings leap of 14 per cent to more than US$1.55 billion. The confident tone marks a striking change from three months ago, when Bombardier held off on giving financial guidance due to the uncertainty posed by U.S. President Donald Trump's tariff threats. 'We need to exercise caution until we see how this all unfolds,' Martel said on Feb. 6, adding that he was 'very disappointed' he could not provide targets. Since then, Bombardier has achieved 'tariff clarity,' he told analysts on a conference call Thursday. Its planes comply with the United States-Mexico-Canada Agreement, exempting them for now from 25 per cent tariffs, the chief executive said. 'The whole process has been taxing, if you'll pardon the pun.' Bombardier's book-to-bill ratio — a measure of orders received to sales completed, a key indicator of near-term demand for a company's services — dipped only slightly to 90 per cent in its latest quarter. Concern around 25 per cent duties on steel and aluminum imports into the U.S. have plagued the aerospace sector in recent months, but Martel said any extra costs were factored into its forecast. 'Bombardier and business aviation as a whole are resilient. There are dozens if not hundreds of major international trade deals to be done around the world in the immediate future,' he said. That doesn't mean there hasn't been turbulence — as recently as five weeks back. 'We had a number of order discussions stalled around the March time frame,' Martel said. 'Uncertainty caused a short speed bump as everyone involved in transactions slowed down a bit to reassess the situation.' Market concern has now zoomed out to the broader economic picture and the risk of sluggish demand for private jets whose list prices can range from US$26 million to US$78 million. 'So far, business jet flying activity and new jet demand have remained stable despite the global trade chaos,' said National Bank analyst Cameron Doerksen in a note to investors. In the meantime, Bombardier continues to invest in services — maintenance and repairs — which accounted for one-third of its revenue last quarter. The developments range from a bigger service centre in Abu Dhabi to enhanced interior refurbishment for planes in Singapore. Bombardier has roughly 5,000 planes in service across the globe, including about 2,000 Learjets, which it stopped producing in 2022. As for the company's budding defence division, the spectre of global conflict may work in its financial favour. 'The geopolitical tension that exists today, the pressure on most of the countries to increase their ... defence spending definitely is materializing,' Martel said. Bombardier announced in March an order from Australia for two Challenger 650 planes to be used for surveillance and reconnaissance. On Thursday, the company reported a first-quarter profit of US$44 million, down from US$110 million the year before. Chief financial officer Bart Demosky noted higher 'supplier-related costs' that will remain a headwind this year. Revenue in the three months ended March 31 rose 19 per cent to US$1.52 billion from US$1.28 billion in the same period a year earlier, Bombardier said. On an adjusted basis, it earned 61 cents US per share versus last year's 36 cents US per share. However, the outcome notched lower than analysts' expectations of 66 cents US per share, according to financial markets firm LSEG Data & Analytics. The company's order backlog ticked down one per cent to US$14.2 billion. This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX:BBD.B)
Hamilton Spectator
01-05-2025
- Business
- Hamilton Spectator
Bombardier reports $44 million Q1 profit, down from $110M a year earlier
MONTREAL - Bombardier Inc. reported a first-quarter profit of US$44 million, down from US$110 million a year earlier as its revenue rose. The Montreal-based private jet maker, which keeps its books in U.S. dollars, says the profit amounted to 37 cents US per diluted share for the quarter ended March 31 compared with a profit of US$1.02 per diluted share a year earlier. Revenue for the quarter totalled US$1.52 billion, up from US$1.28 billion in the first three months of 2024. On an adjusted basis, Bombardier says it earned 61 cents US$ per share in its latest quarter compared with an adjusted profit of 36 cents US per share a year earlier. The company's backlog was US$14.2 billion at March 31. Bombardier chief executive Éric Martel says the company has developed 'multiple scenarios' over the past few months as it navigates economic uncertainty and has 'everything in place to guide for a strong year in 2025.' This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX::BBD.B)
Toronto Star
01-05-2025
- Business
- Toronto Star
Bombardier reports $44 million Q1 profit, down from $110M a year earlier
MONTREAL - Bombardier Inc. reported a first-quarter profit of US$44 million, down from US$110 million a year earlier as its revenue rose. The Montreal-based private jet maker, which keeps its books in U.S. dollars, says the profit amounted to 37 cents US per diluted share for the quarter ended March 31 compared with a profit of US$1.02 per diluted share a year earlier. Revenue for the quarter totalled US$1.52 billion, up from US$1.28 billion in the first three months of 2024. ARTICLE CONTINUES BELOW On an adjusted basis, Bombardier says it earned 61 cents US$ per share in its latest quarter compared with an adjusted profit of 36 cents US per share a year earlier. The company's backlog was US$14.2 billion at March 31. Bombardier chief executive Éric Martel says the company has developed 'multiple scenarios' over the past few months as it navigates economic uncertainty and has 'everything in place to guide for a strong year in 2025.' This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX::BBD.B)
Winnipeg Free Press
01-05-2025
- Business
- Winnipeg Free Press
Bombardier reports $44 million Q1 profit, down from $110M a year earlier
MONTREAL – Bombardier Inc. reported a first-quarter profit of US$44 million, down from US$110 million a year earlier as its revenue rose. The Montreal-based private jet maker, which keeps its books in U.S. dollars, says the profit amounted to 37 cents US per diluted share for the quarter ended March 31 compared with a profit of US$1.02 per diluted share a year earlier. Revenue for the quarter totalled US$1.52 billion, up from US$1.28 billion in the first three months of 2024. On an adjusted basis, Bombardier says it earned 61 cents US$ per share in its latest quarter compared with an adjusted profit of 36 cents US per share a year earlier. The company's backlog was US$14.2 billion at March 31. Bombardier chief executive Éric Martel says the company has developed 'multiple scenarios' over the past few months as it navigates economic uncertainty and has 'everything in place to guide for a strong year in 2025.' During Elections Get campaign news, insight, analysis and commentary delivered to your inbox during Canada's 2025 election. This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX::BBD.B)
Belfast Telegraph
29-04-2025
- Business
- Belfast Telegraph
2,000 Belfast jobs in limbo as potential owners stay silent after ‘definitive' deal to break up business
European manufacturer Airbus confirmed on Monday that it had reached 'definitive' agreement to acquire parts of the Spirit aerospace business which manufacture wings and the mid-fuselage for its A220. That will maintain the jobs of 1,400 people at Spirit in east Belfast, formerly Bombardier – but there is no confirmation of a buyer for other parts of the business, employing 2,000 people. Earlier this year, a US source identified Swiss company Montana Aerospace as a possible player. On Monday, a spokesperson said that as a listed company, it 'generally does not comment on rumours of possible acquisitions'. Last week, company accounts for Spirit AeroSystems in Belfast said that Boeing, which is taking over most of Spirit in a separate deal, would take over the remainder of the Belfast operation if no other buyer is found. But it did not return a request for comment on Monday when asked if it would soon confirm its intentions. Bombardier, the Canadian company which owned the former Shorts business before Spirit, was previously linked to a deal but referred on Monday to comments made by its CEO Éric Martel in February. At that time, he said: 'There's a possibility we could be part of that transaction but also have the option that if there's a credible buyer that would guarantee the delivery of our fuselages for the life of our programme, we are going to be comfortable with that solution also. Both scenarios remain on the table.' Stephen Kelly, chief executive of Manufacturing NI, said close integration of the sites was still possible, even if there is more than one buyer. 'There's no doubt about it that the business is going to be broken up in some form but that doesn't mean it can't continue to be significantly integrated…. 'Whether there will be two or multiple future owners it makes a lot of sense for integration to be maintained.' My preference was always to see a single buyer for the entire site – East Belfast DUP MP Gavin Robinson Unite the Union said it believed a total of 10,000 jobs in Ireland were dependent on the east Belfast firm, adding that the lack of buyer for its other Belfast sites meant there was an 'unprecedented' threat to the aerospace sector and wider economy. Unite's Sharon Graham said hundreds of 'highly skilled' workers were facing an uncertain future. She said: 'The UK Government must now intervene to secure not just the workers but the future of Northern Ireland aerospace.' Union colleague Susan Fitzgerald said: 'Aerospace is a critical and high-value sector at the heart of Northern Ireland's economy. Production at Spirit is central to that with a supply chain extending across the region, and indeed the whole island. 'The potential break-up of Spirit is not just a huge threat to our members' livelihoods, but is an unprecedented threat to Northern Ireland's economy and society.' Representatives of the workforce will travel to Westminster on Wednesday for meetings with ministers and MPs, the union said. East Belfast DUP MP Gavin Robinson said: 'My preference was always to see a single buyer for the entire site. The current deal still leaves significant uncertainty for those staff in the non-Airbus operations... it is important there is clarity quickly around the entire Belfast operation. This is significant employer, not just within east Belfast but Northern Ireland, with a highly skilled workforce. 'There is a continued need, however, to build on previous efforts to bring more investment to this sector.' Airbus said the deal reinforced its 'long-term commitment to the UK's aerospace sector and maintaining stability across the supply chain'. Work carried out by Spirit in Prestwick, Scotland, will also be transferred to Airbus, but will be operated as an affiliate business. Under the terms of the deal, expected to be completed later this year, Airbus will be compensated by payment of $439m from Spirit AeroSystems. Airbus is also acquiring other Spirit operations in Kansas in the US, Morocco and France.
