Bombardier plans to increase production by 12% in 2023
Bombardier is getting ready to increase deliveries for mor than 12% in 2023 till expected 136 airplanes and forecasts income increase for more than 10% till 7.6 billion USD, announced company’s management publishing results for 2022. During conversation with analysts President and Chief Executive Officer Eric Martel said that “company is working in winning situation that allows us to remain predictable” and added that 2023 seams to be very good for new achievements.
Martel said that production goals take account of potential risks related to supply chain and potential recession but he also marked that underrun in amount of 14.8 billion USD that has increased by 2.6 billion USD in 2022 is very solid. “Now, when we see that the market is becoming stable we are not going to inflate our rates, – Executive Officer marked. – We are going to adhere plan and guarantee that our production will not be subject to risk”.
He added that supply chain becomes better and better and though it still requires increased attention situation becomes more controlled. Martel said that the year started with stability and some additional business growth in Asia. Company plans to deliver 20 airplanes in the first quarter.
As to 2022 company confirmed own preliminary results published in January according to which deliveries reached 123 business-jets but income – 6.9 billion USD. In 2022 were delivered by three airplanes more than in 2021 and income increased by 14%. Adjusted EBITDA jumped till 930 million USD that is by 45% more.
Jump of the incomes became result of combination of airplanes’ deliveries that had tendency to higher level of product portfolio including 70 Global, 50 Challenger and three Learjet 75 in 2022 as compared to 66 Global, 44 Challenger and 10 Learjet one year earlier. Also stimulating results became 22% growth of the sales of aftersales service to 1.5 billion USD. Martel named results “strong positive culmination of the strong year”.
It is important to mark that Bombardier continued to annul debt, covering 1.1 billion USD more that means reduction by 15% and bringing total number to 40% from December 2020. Annual saving only at the expense of the debt reduction last year makes 80 million USD according to Bombardier estimations.