Bombardier to delay Global 7000 business jet after profit falls
High U.S. dollar cuts second-quarter profit to $125M US or 6 cents a share
Bombardier Inc. says the debut of its new Global 7000 business jet will be delayed until 2018.
The company had expected the long-range business aircraft to enter service in next year.
The plane and train maker, which keeps its books in U.S. dollars, said the profit amounted to six cents per share for the quarter ended June 30. That compared with a profit of eight cents per share a year ago.
Revenue totalled $4.6 billion for the quarter, compared with $4.9 billion in the same quarter last year.
However, excluding the impact of foreign exchange, it said revenue was up two per cent.
On an adjusted basis, Bombardier said it earned $145 million or six cents per share, down from $192 million or 10 cents per share a year ago.
CSeries in testing
Bombardier has been under pressure in recent months as it has struggled to develop its new CSeries aircraft.
The company said Thursday that C Series flight testing is progressing rapidly with over 2,000 hours completed and performance exceeding targets.
The aircraft is on track to enter into service in the first half of 2016, Bombardier said.
Bombardier chief executive Alain Bellemare said the financial results were in line with the company's plan.
"After five months on the job, I have a better understanding of our challenges and opportunities," Bellemare said in a statement.
"We are taking specific action, including the launch of our Bombardier transformation plan, a disciplined approach to cash management, and the strengthening of our leadership team to reshape the company and ensure our long-term success."