Yahoo Finance UPDATE 2-Bombardier sees strong 2024 revenue, boosted by higher deliveries
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Bombardier expects revenue of $8.4-8.6 billion in 2024
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Supply chain improving but still some issues
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Aftermarket services division sees record revenues in Q4
(Adds comments from analyst call in paragraphs 4-5, 10)
By Abhijith Ganapavaram and Allison Lampert
Feb 8 (Reuters) - Canada's Bombardier forecast 2024 revenue above analysts' estimates on Thursday, saying it expects to deliver more aircraft than last year on the back of sustained demand for private air travel.
Business jet makers have been boosted in the last two years by a switch to private flying during the pandemic, which allowed companies such as Bombardier to increase prices. But supply chain challenges, labour shortages and softening global economic growth remain headwinds.
The Montreal-based company expects to see margin expansion in 2024 and 2025, and predicted revenue this year of $8.4-8.6 billion, above analysts' expectations of $8.27 billion, according to LSEG data.
Bombardier CEO Eric Martel told analysts that, while the supply chain has improved, the company had to slow some production to allow suppliers to get back on track.
“Some of the significant suppliers, I would say, are still in a catch-up mode, but we have less issues,” Martel said.
Bombardier expects to deliver between 150 and 155 jets this year, compared with 138 last year. Free cash flow is expected to be $100 million to $400 million, versus $257 million in 2023.
Bombardier reported a lower fourth-quarter adjusted net income of $135 million, down from $205 million a year earlier, amid lingering supply snags.
On a per share basis, adjusted profit was $1.37, one cent below Wall Street expectations.
Revenue rose 15.3% to $3.06 billion in the quarter through December, beating estimates of $2.88 billion, helped by higher deliveries and record revenues from aftermarket services.
Chief Financial Officer Bart Demosky told analysts he sees another year of double-digit aftermarket growth in 2024.
Free cash flow from continuing operations rose to $646 million, below expectations of $672 million. (Reporting by Abhijith Ganapavaram in Bengaluru and Allison Lampert in Montreal; Editing by Krishna Chandra Eluri and Kylie MacLellan)
