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.

Pre-tax earnings are expected fall to $504 million next year before nearly recovering to this year's level of $614 million by 2017.

Fierce competition and the strength of the Canadian dollar contribute to slim industry profit margins.

Conference Board senior economist Maxim Armstrong says the industry's outlook mirrors global economic trends.

"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.

"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."

Industry revenues surged last year but are expected to experience a correction in 2012.

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.

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Canadian aerospace profits expected to drop on lower sales: Conference Board