Bombardier, which has been spending heavily on its new CSeries jets program, said free cash flow usage dropped to US$490 million from US$808 million.
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Any further output cutbacks in business aircraft would amount to “fine tuning”, and would likely target the Lear 75, Bellemare said Friday.
Bombardier Inc. reported a wider-than-expected second-quarter loss amid rising costs for increased production of the new C Series airliner and warned that business-aircraft pricing remains under pressure.
The Canadian manufacturer says revenue contracted by $311 million year-on-year, to $4.31 billion, as a result of planned reductions in business aircraft deliveries.
The company says its C Series offers the best passenger experience, operating costs and environmental performance in the 100-to-150 seat class.
Bombardier swung to an adjusted loss of 6 cents a share in the second quarter, the company reported in a statement.
“This was a pivotal quarter for the CSeries as both variants are now certified and the program has begun generating revenue”, Bellemare said.
However, Bombardier CEO Alain Bellemare – who joined the company early a year ago as the CSeries program was mired in delays and cost overruns – said the company has made “very good progress” on its turnaround plan that included the delivery of the first CS100 to Swiss International Air Lines at the end of June.
Reaffirmed forecast Bombardier on Friday reaffirmed its full-year forecast.
Its C Series aircraft program is shifting from the development to revenue-generating phase, in what it describes as a “historic milestone” as it brings to market the first clean-sheet designed narrow-body aircraft in nearly three decades.
In July, Bombardier rival, São Paulo-based Brazilian aerospace conglomerate Embraer SA, underscored the soft market for business jets as it lowered its projections for executive-jet deliveries and revenue.
In an interview, Mr. Bellemare said the cut isn’t “material” to the CSeries backlog, which exceeds 300 firm orders and more than double that if purchase options are included. Bombardier, which reported its Second Quarter 2016 Results on Friday, always does so in U.S. dollars.
During the second quarter, Bombardier signed a firm order for 10 CRJ900 aircraft – worth $472m – with an undisclosed customer.
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Bombardier’s net loss according to generally accepted accounting principles was $490 million, or 24 cents a share, compared with net income of $125 million, or 6 cents, a year earlier.
