(Reuters) – Bombardier (OTC:) reported higher first-quarter cash burn on Thursday as the Canadian planemaker builds up inventory to support increased production of business jets amid resilient demand for private flying.
Cash burn for the quarter through March was $387 million, compared with $247 million a year earlier.
The Montreal-based company is facing pressure from rival General Dynamics (NYSE:)’ Gulfstream, which had its flagship G700 luxury jet certified last month by the U.S. Federal Aviation Administration.
Business jet makers are reporting sustained demand for their aircraft, although industry data shows private flying has been leveling off after years of growth spurred by the pandemic.
Bombardier on Thursday reported 20 aircraft deliveries in the first quarter, which it said will put it on track to handover 150 to 155 jets this year.
Revenue, however, declined 12% to $1.3 billion in the quarter due to the delivery of less pricier aircraft. But orders for Bombardier’s jets rose 60% in the first quarter, pushing the company’s backlog to $14.9 billion.
Revenue from the company’s services business rose 13% to $477 million.
Quarterly profit fell to $110 million from $302 million. On a per share basis, adjusted profit was 36 cents, compared with $1.06 a year earlier.
