Bombardier Inc Cuts Back On CSeries Delivery Forecast
Bombardier Inc made the decision to more than half its CSeries aircraft delivery forecast for the year, stating that it projected its full-year revenue to be on the lower end of its previously mentioned range.
Naming engine delivery deferrals by its supplier Pratt & Whitney as a reason, the company cut its CSeries delivery forecast to 7 from 15 aircraft.
The Canadian airplane and train maker presently anticipates being in close proximity to the lower end of the US $16.5-bliion to $17.5-billion revenue range for the full year.
Fred Cromer, President, Bombardier Commercial Aircraft stated, “We are working very closely with Pratt & Whitney to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives.”
“We are very confident in our production ramp-up plan, including our ability to meet our production goal of 90 to 120 aircraft per year by 2020.”
The company has fought to acquire new orders for its CSeries plane with the financial improbability weighing on potential clients.
On a consolidated basis, the company confirmed its 2016 revenue and earnings before interest and tax (EBIT) guidance.
Last week, Bombardier claimed that it received the final installment of the US $1-billion in federal aid from the province of Quebec for the CSeries program, suffering from years of delay and billions of dollars over budget.