By Ross Marowits, The Canadian Press <\/p>\n
MONTREAL - Canadian aerospace industry profits will decline through the end of 2013 because of a slowdown in new aircraft orders, uncertainty in Europe and a six-month delay in Bombardier's CSeries aircraft, the Conference Board of Canada said Wednesday. <\/p>\n
The think-tank expects industry profits will decline 30 per cent by the end of 2013 from the recent high of $710 million set in 2010. <\/p>\n
Pre-tax earnings are expected fall to $504 million next year before nearly recovering to this year's level of $614 million by 2017. <\/p>\n
Fierce competition and the strength of the Canadian dollar contribute to slim industry profit margins. <\/p>\n
Conference Board senior economist Maxim Armstrong says the industry's outlook mirrors global economic trends. <\/p>\n
\"The aerospace industry is still coping with the lingering effects of the 200809 recession,\" Armstrong wrote in the latest edition of the board's Industrial Outlook. <\/p>\n
\"While new orders indicate that the industry is showing signs of recovery, the financial turmoil in Europe is creating uncertainty and making the comeback difficult.\" <\/p>\n
Industry revenues surged last year but are expected to experience a correction in 2012. <\/p>\n
Lower sales in the first half of this year are expected to push industry revenues down 5.4 per cent to $14.9 billion this year, before rising each year to reach $18.5 billion in 2017. <\/p>\n
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Canadian aerospace profits expected to drop on lower sales: Conference Board<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Ross Marowits, The Canadian Press MONTREAL - Canadian aerospace industry profits will decline through the end of 2013 because of a slowdown in new aircraft orders, uncertainty in Europe and a six-month delay in Bombardier's CSeries aircraft, the Conference Board of Canada said Wednesday. The think-tank expects industry profits will decline 30 per cent by the end of 2013 from the recent high of $710 million set in 2010. Continue reading