Bloomberg News

Bombardier Rises as Ilyushin Firms CSeries Order: Montreal Mover

February 20, 2013

Bombardier Inc. jumped the most in almost three months after the planemaker said Russia’s Ilyushin Finance Co. converted a letter of intent into an order for CSeries jets that could be worth at least $2.56 billion.

Bombardier’s widely traded Class B stock advanced 4.4 percent to C$4.28 at the Toronto close for its biggest single- day gain since Nov. 27. Most of the increase came in the last 20 minutes of trading, after Bombardier disclosed the order.

The deal includes a purchase agreement by Ilyushin to buy 32 units of the CS300 plane and options for another 10, Montreal-based Bombardier said today in a statement. It follows a letter of intent signed by Ilyushin in August 2011.

Bombardier continues to develop the CSeries, its largest jet ever, after saying in November that it would push back the maiden flight by six months because of unspecified issues with suppliers. The company now plans to conduct a first flight by June 30.

Based on list prices, Ilyushin’s firm order would be valued at about $2.56 billion, Bombardier said. That would increase to about $3.42 billion if Ilyushin exercises its 10 options.

United Technologies Corp.’s Pratt & Whitney unit said today Transport Canada certified the PW1500G engine that will power the CSeries. Bombardier is in the process of completing final assembly of the first CSeries flight test aircraft, Rob Dewar, vice president and general manager of the program, said in a statement.

Bombardier is scheduled to report fourth-quarter results tomorrow before the market opens.

To contact the reporter on this story: Frederic Tomesco in Montreal at tomesco@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus