Bombardier’s recently published first quarter results for 2003 reported a marked drop in revenue and income. The aerospace division earned revenues of C$2.4 billion, compared with C$2.7 billion for the same period last year. Ceo Paul Tellier said: “This first quarter has been extremely difficult and I am not satisfied with our results. The decline in the business aircraft market, unfavourable economic conditions and the continued uncertainty in the commercial aviation industry remain concerns.”

The company’s order backlog is now $17.1 billion, compared with $23 billion for the same period last year. Bombardier puts this down to higher deliveries versus orders received, as well as a negative foreign exchange adjustment of approximately $260 million relating to a lower effective exchange rate for the US dollar compared to the Canadian dollar.

Aircraft deliveries totalled 63, compared to 65 in the first quarter of the previous fiscal year. This number includes deliveries of 16 business aircraft and 47 regional aircraft. The aerospace division also reported a loss of $7 million in income, compared with a $158 million gain last year.

“I spent my first three months at Bombardier working closely with the financial community to address the liquidity issue and ensure more flexibility for the corporation going forward,” said Tellier.

“Our financial bank covenant has been amended, our equity issue was overwhelmingly successful and a sound action plan was put into place to divert assets.”