Senior managers at Bombardier Aerospace must be very glad to put the summer of 2014 behind them. As we head into Q4, the ill-fated CSeries is flying again, the company’s restructure has been completed and its production rates have ramped up.
Bombardier’s Q3 results, published yesterday (October 30), reveal that its aerospace division achieved revenues of $2.6bn, a whopping 29 per cent higher than Q3 2013 – outstripping the group’s overall growth in revenues of 20 per cent year on year.
The results also confirmed that production rates have increased by more than 57 per cent since 2013, with the OEM delivering 71 aircraft during July, August and September compared with 45 the previous year.
Demand for Bombardier aircraft is on the up too, with the OEM receiving close to three times the number of orders in Q3 2014 as it did in 2013 – 76 compared with 26 – and a growing backlog that has reached $37.9bn, up from $31.1bn at the end of 2013.
The most notable order of Q3 came from a subsidiary of lessor Macquarie AirFinance which signed a deal for 40 CS300 aircraft and a further 10 options.
The agreement takes the number of firm orders for the CSeries up to 243, which may go some way to alleviate the disappointment of having Swedish carrier and lessor Braathens back out of being the CSeries launch customer.
In announcing its Q3 results, Bombardier also confirmed that the reorganisation of its aerospace division, announced at the end of July, has taken place.
The restructure has seen the division split into business aircraft, commercial aircraft and aerostructures and engineering, which will design and develop advanced composite and metallic structures for civil aircraft.
Reductions in headcount made during October cost the firm $63m, making a significant dent in its Q3 operating profits but which will result in annual cost savings of $200m, according to the OEM.
“Our new lighter structure will result in a more nimble organisation with the added benefit of reduced costs. This, in combination with our investments in new products, will ensure our market leadership and improved execution on our order backlog,” said Pierre Beaudoin, Bombardier’s president and CEO.
With the CSeries test programme back on track, the launch of two new business aircraft and a new leaner, meaner business structure, it seems that Bombardier Aerospace’s future is looking brighter.