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MONTREAL - Bombardier (TSX:BBD.B) may have to revise its business jet forecasts after an industry association said its deliveries continued to fall in the third quarter.
The Montreal-based manufacturer delivered 36 business jets during the third quarter, down nearly 37 per cent from the 57 aircraft shipped a year ago, according to the General Aviation Manufacturers Association.
Corresponding revenues fell to US$1.02 billion from $1.42 billion.
Third-quarter shipments marked a deterioration from year-over-year declines in the first half of the year. Bombardier had delivered 50 planes in the second quarter, down 25.4 per cent from the year-ago period. It sent 54 planes in the first quarter, a drop of 19.4 per cent.
During the first three quarters of 2009, the industry delivered 615 business jets, down 37.7 per cent from 988 in 2008.
Bombardier spokeswoman Danielle Boudreau said its lower shipments were expected because of weak economic conditions this year and comparisons to a strong period in 2008.
"Last year was a record year so definitely we were expecting a decline this year," she said in an interview.
Bombardier said it expects business jet deliveries will decrease by 25 per cent this year.
It is in the process of laying off 4,360 employees as it reduces production of business and commercial aircraft. Regional jets, which are sold to airlines, are estimated to account for 1,200 of the layoffs.
The manufacturer has yet to forecast deliveries in 2010, but some industry observers have suggested it may have to further reduce production rates.
Boudreau said a deliveries forecast for next year may not be available when the company reports its quarterly results Dec. 3.
She noted that among all manufacturers, Bombardier has come out on top again in terms of revenues and units for the eight business jet segments in which it competes. It doesn't make ultra-light planes.
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