Bombardier beats Street, Q1 profits increase 13% on improved plane demand

Aircraft maker Bombardier (TSE:BBD) announced Wednesday a 13% increase in its first quarter profit, largely attributed to strong growth in demand for business and commercial aircraft.
The Montreal, Quebec-based company posted a net income for the three months ending April 30 of $220 million, or $0.12 per share, compared to the previous year's $195 million, or $0.11 per share.
Total revenues from the company were $4.7 billion, a 9% rise from $4.3 billion a year earlier.
Analysts estimated earnings per share of $0.10, on revenue of $4.49 billion.
Sales from the company's aerospace division were $2.2 billion, a 10% jump from the year before, resulting from strong increases in orders and deliveries of commercial aircrafts, the company said.
Bombardier, whose backlog for its aerospace business rose 10% between January 31 and the end of the first quarter to $21.1 billion, said it received 86 aircraft orders, including four amphibious aircrafts, five commercial planes and 77 business jets, 50 of which are for NetJets Inc, a contract worth $2.8 billion. 77 business jet orders was up from a mere six a year earlier.
"Bombardier Aerospace has started to benefit from a stronger business aircraft market, especially at the high end," said president and CEO, Pierre Beaudoin.
In terms of commercial aircrafts, the company delivered 23 compared to 16 a year earlier, but only saw five new orders in the quarter.
"Our commercial aircraft segment, although slower to recover, is seeing an improved level of interest from customers," added Beaudoin.
Meanwhile, the transportation unit, the company's Berlin, Germany-based rail business, brought in $2.5 billion in sales, up from $2.3 billion a year ago, as it posted new orders worth $1.2 billion in the latest quarter.
This included a $278 million deal with the Government of South Australia for the supply and maintenance of its electric trains.
The third largest commercial plane maker in the world saw its shares rise more than 5% on the Toronto Stock Exchange on Wednesday, to trade at $7.1 as of 9:39am EST.