English: Bombardier CSeries mockup Italiano: Modello dimostrativo del Bombardier CSeries (Photo credit: Wikipedia)
BBD.B : TSX : $4.64
Shares of Bombardier were higher after press reports indicated that EasyJet is on the verge of a large new order that may include BBD’s CSeries commercial jets. As reported by LesEchos, the British company, which reported a significant improvement in half-yearly results, is preparing a new giant order of more than 100 aircraft in the coming weeks, which would incorporate Airbus A320 or Boeing 737, as well as Bombardier CSeries. “Our future order will focus on Airbus or Boeing, but also on Bombardier,” said Carolyn McCall, Executive Director, at the presentation of the half-year results.
Recently, BBD reported its Q1/13 report where the company reiterated its 2013 and 2014 guidance.
Key points include: BBD expects 190 business jet deliveries, up from 179 in 2012, and 55 regional airliners, an increase from 50 units in 2012.
BBD’s Q1/13 business jet orders of only 27 units were on the low side.
Canaccord s Analyst David Tyerman think this is temporary. Management reiterated that it is cautiously optimistic about order prospects
given the company’s pipeline, especially in larger aircraft types. Regional airliner orders were very weak in Q1/13, with no regional jets ordered and only four turboprop orders secured. However, as with business jets, these orders are lumpy.
BBD continues to believe it has a good shot at larger U.S. airline orders as those airlines up-gauge smaller regional jets. In addition, the company is positioned to capture further orders from Garuda from option conversion and Russia, China and Africa hold some promise.
