Bombardier Aerospace has announced losses of C$24.8 million on C$2.68 billion revenues in the quarter ended July 31. “Overall revenues have increased, reflecting a higher level of activities in the transportation sector, as well as growth in the recreational products sector. However, second quarter earnings have been negatively impacted by lower business aircraft deliveries, which is affected by the persistent weakness of the U.S. economy,” said ceo Robert Brown.

The company said that one-time charges in used aircraft, combined with the residual impact of May’s Mirabel and Montréal strikes, have further lowered its margins. “As evidence of this decline,” added Brown, “in the first half of August, we received cancellations for four Challengers and four Learjet 45s.”

During the same period last year, Bombardier Aerospace showed C$329.1 million profit on C$2.72 billion revenues. “Under these circumstances and given our view that the difficult economic situation will continue to impact the business jet market to the end of the year, we had no choice but to revise our financial targets for the fiscal year. We promptly informed the market in accordance with our disclosure policy. This, combined with the one-time charges, led us to reduce net earnings to $0.70 per share, as compared to our previous guidance of $0.89,” he added.