Bombardier profit beats estimates but cash flow misses; shares fall

Canada's Bombardier on Thursday reported a quarterly profit that beat expectations, boosted by demand for flying and maintaining private jets, but its free cash flow missed estimates, and its shares closed down 8.49%. The Montreal-based business jet maker reported a Q2 profit of $10m from continuing operations, compared with a loss of $109m in the year-earlier period. Results of corporate jet makers have been powered by demand for private flying over the last few quarters, but companies are wrestling with supply chain challenges. Bombardier reported a cash burn of $222m compared with positive free cash flow of $341m in the same period a year ago, due partly to a build-up in working capital to support higher deliveries. Analysts polled by Refinitiv had expected negative free cash usage of $171m. CEO Eric Martel told reporters Bombardier sees opportunities with fleet operators including key customer VistaJet, part of Dubai-based Vista Global Holding Ltd. An auditor raised a red flag about VistaJet several months ago but Martel said he did not have concerns about the company which has a subscription membership model that makes jets available on short notice without ownership, unlike some rivals that sell shares or fractions in private planes.<br/>