Aerospace industry reaches new production high in 2008

    OTTAWA, June 18 /CNW Telbec/ - Canada's aerospace industry will post its
highest profit level in five years this year, as production is expected to
surpass its previous peak, according to the Conference Board's Canadian
Industrial Outlook: Canada's Aerospace Product Manufacturing Industry - Spring
    "The global aerospace industry is hanging tough despite the slowing U.S.
economy, and Canada is landing its share of the market," said Valerie Poulin,
Economist. "In both the business and commercial jet markets, the Canadian
industry is benefiting from healthy economic growth in emerging markets and
increasing global demand for air transportation."
    Rising costs and declining prices have limited the aerospace industry's
profit growth in recent years. But production has been growing at a healthy
pace since 2004, and this year it is expected to surpass the industry's
pre-9/11 peak. As a result, profits are expected to reach $533 million this
year, their highest level since 2003. From 2009 to 2012, double-digit profit
growth is forecast each year, but margins will remain thin by the industry's
historical levels.
    Two volatile factors-record oil prices and the strong Canadian
dollar-pose risks to the industry. Fuel costs threaten the profitability of
airline carriers, which in turn affects their investment in new aircraft,
although fuel prices are spurring some airlines to invest in even more
fuel-efficient planes. The value of the loonie, meanwhile, makes Canadian
production less competitive compared to other manufacturing locations. As a
result, future production-including components of Bombardier's planned CSeries
100-to-149 seat jets being considered for launch this year-may move to other

For further information:

For further information: Brent Dowdall, Media Relations, (613) 526-3090
ext. 448,

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