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Aug 5 (Reuters) – Bombardier Inc (BBDb.TO) said on Thursday it would generate higher revenues and use less cash in 2021, helped by a rebound in business jet flights and demand for planes after the pandemic squeezed orders last year, pushing its shares up to 8%.
Montreal-based Bombardier now expects to peak its previous delivery forecast of 110 to 120 business jets, after beating analysts’ estimates for quarterly revenue due to higher deliveries and demand. after-sales service.
The aircraft maker has said it is set to be sold on all planes in 2021, with chief executive Eric Martel expecting orders to resume for the company’s flagship jet, the Global 7500 , which costs $ 73 million “by the end of the year.”
According to data from FlightAware, business jet flights increased 23% in the week starting July 21 from 2019 levels in the United States, the world’s largest market for corporate aviation. ‘business. Read more
Separately, Bombardier also revealed that the Royal Canadian Mounted Police are joining a global investigation into suspicions of corruption linked to ten-year-old sales of business jets to Garuda Indonesia (GIAA.JK).
Bombardier shares climbed 6% for the last time to C $ 1.59.
Rivals Textron (TXT.N) and Gulfstream Aerospace of General Dynamics Corp are increasing production to meet higher demand. Read more
Asked by analysts whether Bombardier was also considering higher production rates, Martel said the company was instead focusing on growing its order book by $ 10.7 billion.
Free cash flow usage for 2021, a metric closely watched by investors, is now expected to be above $ 300 million, down from a previous forecast of $ 500 million.
Annual revenue is expected to exceed $ 5.8 billion, compared to more than $ 5.6 billion.
Business jet revenues for the three months ending June 30 jumped 50% to $ 1.5 billion, from $ 1.3 billion expected by analysts, according to Refinitiv.
But Bombardier posted an adjusted net loss of $ 137 million, or 6 cents per share, for the second quarter.
Bombardier, the latest aerospace group to come under close scrutiny of past deals, previously said the Justice Department and Britain’s Serious Fraud Office were investigating the acquisition and lease of its CRJ1000 aircraft at Garuda between 2011 and 2012. read more
Bombardier is cooperating “with all investigating authorities,” said a spokesperson.
Reporting by Sanjana Shivdas in Bengaluru and Allison Lampert in Montreal; Editing by Saumyadeb Chakrabarty, Mike Harrison and Kirsten Donovan
Our Standards: Thomson Reuters Trust Principles.
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