* Q2 EPS $0.08 vs $0.11 yr earlier
* Analysts had expected EPS $0.08
* Revenue down 16 pct
* Shares up 0.9 percent on the TSX (Adds details, analysts’ quotes. In U.S. dollars unless noted)
TORONTO, Sept 1 (Reuters) - Quarterly profit at Bombardier Inc (BBDb.TO) fell 27 percent on weakness in both its aerospace and train-making segments, but a significant reduction in business-jet cancellations pointed to a recovery in that sector.
Bombardier, the world’s No. 3 civil aircraft maker after Boeing (BA.N) and Airbus EAD.PA, said on Wednesday it had net income of $148 million, or 8 cents a share, in its second quarter, ended July 31. That was down from $202 million, or 11 cents a share, a year earlier.
Revenue at the company, which it also the world’s No. 1 train maker, fell 16 percent to $4.1 billion.
Analysts, on average, had expected earnings of 8 cents a share, on revenue of $4.51 billion, according to Thomson Reuters I/B/E/S.
“The weak sister again was aerospace and you want to see a turn there,” said Chris Sears, analyst at MacDougall, MacDougall & MacTier in Montreal.
“But for them to say they’ve received a significant reduction in jet cancellations, that’s something you want to see, and for them to say that they’re seeing signs of a recovery, that’s something we’ve been waiting for for a while.”
Revenue at the company’s aerospace segment fell to $2 billion from $2.4 billion a year earlier due to lower deliveries of business aircraft. The aerospace division recorded 29 net orders during the quarter.
Bombardier said order backlog in aerospace rose to $17.1 billion as of July 31, from $16.7 billion on Jan. 31, driven mainly by an order received for its C-Series aircraft.
Revenue at the train-making transportation division was $2.1 billion, down from $2.5 billion a year earlier.
“We’ve been largely focused on the cyclicality of the aviation group, specifically the biz jet recovery, but at the top line, it was the transportation group that came in a little bit below expectations,” said Scott Rattee, an analyst at Stonecap Securities.
“Net and net, I would be more concerned, except for the fact that quarter to quarter there are fluctuations in the transportation group having to do with revenues — large projects don’t necessarily fall neatly into any particular quarter.”
During the latest quarter, the transport division reported $4.3 billion in new orders compared with $3 billion a year earlier
Montreal-based Bombardier said its overall backlog was $47.4 billion as at July 31, compared with $43.8 billion on Jan. 31.
Aircraft deliveries fell to 46 in the latest quarter from 80 in the year-before quarter.
Bombardier’s class B shares, which have lost around 20 percent of their value in the past six months, were up 0.7 percent at C$4.48 on the Toronto Stock Exchange on Wednesday morning.
$1=$1.05 Canadian Reporting by John McCrank in Toronto and Bhaswati Mukhopadhyay in Bangalore; editing by Peter Galloway