A leaner Bombardier has managed to reverse a huge second-quarter loss from last year, thanks in part to strong aftermarket sales relating to its commercial and business aircraft activities.
In its final quarterly segmentation before it becomes part of Bombardier Aviation, Bombardier Commercial Aircraft (BCA) reported a pre-tax profit (EBIT) of $226 million, from a $668 million loss in Q2 2018.
BCA’s EBIT for the half year was $41 million, which Bombardier chief financial officer John Di Bert said resulted from “solid aftermarket growth as well as from the positive RVGs [residual value guarantees] settlement gains, which are not expected to occur in the second half."
The Q2 2019 profit included the sale of Bombardier’s Q Series aircraft programme to Longview Aviation Capital for $298 million.
That deal included aftermarket operations and assets related to the Q400 program.
Bombardier aims to sell the remaining part of its regional jet program--the CRJ family--to Mitsubishi Heavy Industries (MHI) for a cash consideration of $550 million in the first half of 2020.
Pursuant to the agreement, MHI will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ series aircraft.
The CRJ production facility in Mirabel, Québec will remain with Bombardier, which will continue to supply components and spare parts, as well as assemble the current CRJ backlog of 41 aircraft on behalf of MHI.
Within Bombardier’s business aircraft segment, which should soon form almost the entirety of its aviation activities, aftermarket revenues rose 3.6% compared with the prior-year period.
During the quarter Bombardier announced a new Dubai line maintenance station to enhance service capabilities in the Middle East.