OTTAWA, June 26 /CNW Telbec/ - Canada's aerospace industry is expected to
post a modest profit of $620 million in 2009, despite declining demand for
business jets, according to the Conference Board's Canadian Industrial
Outlook: Canada's Aerospace Product Manufacturing Industry - Spring 2009.
"Although the aerospace industry is being affected by the recession, it
is currently faring better than many other industries," said Valerie Poulin,
Economist. "However, the industry's customers are beginning to rethink or even
cancel orders due to a decline in air travel and their difficulties raising
credit to pay for new jets. The next 12 months will shape the industry's
Despite recent cancellations, the backlog of orders, which is equivalent
to nearly two years of production, is still just below the industry all-time
high. Industry production is expected to slow in the next two years, but
output will still outperform the rest of the manufacturing sector. After an
increase of more than 10 per cent in 2008, production growth is expected to
slow to 1.7 per cent this year and decline slightly in 2010.
Profits fell to $592 million in 2008 and should remain relatively stable
over the next two years. Profit levels are expected to grow steadily beginning
in 2011. However, profit margins remain slim-they fell to a low of 2.7 per
cent in 2008-and expected to average only three per cent annually over the
next five years.
Canadian Industrial Outlook: Canada's Aerospace Product Manufacturing
Industry-Spring 2009 is sponsored by the Aerospace Industries Association of
Canada, the national trade association representing Canada's aerospace
manufacturing and services sector.
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