(Reuters) -Private jet maker Bombardier (OTC:BDRBF) Inc on Thursday reported a smaller second-quarter loss, helped by demand from wealthy travelers and lower interest expenses.
Bombardier now expects 2022 free cash flow of more than $515 million, compared with its earlier forecast of over $50 million, due in part to a swelling order book.
Business jet makers are reporting strong demand for planes and aftermarket services, as private flying in the key U.S. market remains above pre-pandemic levels, but supply chain constraints are limiting production.
“Supply chain pressure is contributing to keeping our aircraft delivery ramp up at a conservative and steady pace, in line with our 2025 projections” Chief Executive Eric Martel said in a statement.
Bombardier’s second-quarter free cash flow from continuing operations, a metric closely watched by investors, was $341 million, compared with $91 million, a year earlier.
Bombardier reported improved margins while its order backlog rose by 37% on an annual basis to $14.7 billion.
Despite strong demand, there are early signs of a calming market. U.S. business jet traffic flattened in July compared with a year earlier, according to FlightAware data, while brokers report more choices of preowned aircraft.
“Following several quarters of growth and improvement in market conditions, the second quarter of 2022 has begun to show signs of stabilization in overall industry conditions,” Bombardier said in a financial filing.
The Montreal-based company’s adjusted loss per share narrowed to 48 cents per share, from a loss of $1.49 per share a year earlier. Analysts on average were expecting a loss of 48 cents per share, according to Refinitiv data.
Revenue rose to $1.56 billion from $1.52 billion for the quarter ended June 30.
The company said it paid off $373 million of debt in the second quarter and reported long term debt of $6.28 billion.
Source:reuters