Bombardier profit rises as train unit grows

Thu Aug 1, 2013 6:52am EDT
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(Reuters) - Canadian aircraft and train maker Bombardier Inc (BBDb.TO: Quote) reported a 22 percent rise in second-quarter profit, helped mainly by growth in its train business.

Net profit rose to $180 million, or 10 cents per share, from $147 million, or 8 cents per share, a year earlier.

On an adjusted basis, the company earned 9 cents per share.

Revenue rose 8 percent to $4.43 billion.

Bombardier has twice delayed the maiden flight of its highly anticipated CSeries jetliner, casting doubt on the company's ambitious target to put the plane into service by mid-2014.

"We're now in the final testing stage in preparation for first flight in the coming weeks," Chief Executive Pierre Beaudoin said on Thursday.

The $3.4 billion CSeries program is Bombardier's ticket to the larger commercial jet market dominated by Boeing Co (BA.N: Quote) and Airbus EAD.PA. The aircraft is a single-aisle plane with seating for up to 160 passengers.

Revenue in Bombardier's aerospace unit was flat at $2.3 billion in the second quarter. The backlog at the division was $33.4 billion as of June 30, compared with $32.9 billion at the end of December.

Bombardier, the world's largest trainmaker, said revenue in the division rose 22 percent to $2.2 billion. The order backlog in the transportation unit was $32.1 billion as of June 30, compared with $32.0 billion at the end December.

(Reporting by Solarina Ho in Toronto and Bhaswati Mukhopadhyay in Bangalore; Editing by Ted Kerr)

Bombardier unveils its CSeries aircraft at a news conference at its assembly facility in Mirabel, Quebec, March 7, 2013. REUTERS/Christinne Muschi