The Story of Bombardier’s First Quarter Cash Burn
High Cash Burn Alert!
Bombardier’s First-Quarter Cash Burn
Bombardier, the Canadian planemaker, revealed an alarming rise in cash burn for the first quarter this year. The company reported a staggering $387 million cash burn, a significant jump from the $247 million recorded in the same period last year.
Rivalry in the Skies!
Competition with General Dynamics
The pressure is on as Bombardier faces off against rival General Dynamics’ Gulfstream. Gulfstream recently received certification for its luxurious G700 jet, intensifying the competition in the business jet market.
Ups and Downs in Demand!
The Rollercoaster of Demand
Despite recent fluctuations in private flying demand, business jet manufacturers like Bombardier are reporting resilient interest in their aircraft. The industry has seen a leveling off in private flying after a surge during the pandemic.
Deliveries Galore!
A Bounty of Deliveries
Bombardier proudly announced 20 aircraft deliveries in the first quarter, signaling a promising outlook for the year ahead with projections to deliver 150 to 155 jets. However, revenue dipped by 12% to $1.3 billion due to the delivery of lower-priced aircraft.
Orders On the Rise!
Skyrocketing Orders
Despite the revenue dip, orders for Bombardier’s jets surged by 60% in the first quarter, boosting the company’s backlog to an impressive $14.9 billion. Revenue from the services business also saw a healthy 13% increase to $477 million.
Numbers Game
Profit and Loss Updates
On the flip side, quarterly profit took a hit, dropping to $110 million from $302 million. Adjusted profit per share also declined to 36 cents compared to $1.06 in the previous year.
Overall, Bombardier’s journey in the first quarter showcases a mix of challenges and triumphs as they navigate the volatile skies of the business jet market.
