Bombardier Inc Chief Executive Officer Eric Martel said on Tuesday the company's defense business involving special mission business jets could grow to a possible $1 billion in annual revenues from a 'fraction' of it right now. "Today it's a fraction ... and we can see this growing quite significantly to become a billion, maybe even bigger than that," Martel said at Aero Montreal's international aerospace forum. Martel did not specify a timeframe and the company does not disclose current revenues for its defense business.
(Reuters) -Business jet maker Bombardier Inc on Thursday reported a smaller second-quarter loss and forecast better-than-expected annual free cash flow, helped by strong demand for private flying, but said it faces supply chain pressures. Montreal-based Bombardier now expects 2022 free cash flow of more than $515 million, compared with its earlier forecast of over $50 million, as orders surge. Business jet makers see strong demand for planes and aftermarket services, as private flying in the key U.S. market remains above pre-pandemic levels and Asia recovers, but supply chain constraints are putting pressure on deliveries.
Bombardier Inc shares fell as much as 17.4% on Monday as workers on a key business jet program walked off the job for a day and amid a broader selloff in global markets. The workers are mostly on the company's strong-selling Challenger business jet family, which accounted for just over a third of the company's plane deliveries in 2021. Bombardier has said it would put a contingency plan in place to reduce the impact on operations from the strike.