Washington - Bombardier Inc Thursday reported higher-than- expected quarterly profits as train sales in Europe rose, but announced 3,000 job cuts in its aerospace unit.

Bombardier said it would slash 10 per cent of aerospace jobs because the demand for business jets had "deteriorated rapidly" and was expected to remain weak. The job cuts would take place by the end of the year at its facilities in the United States, Canada, Mexico and Northern Ireland.

Severance costs will total about 30 million dollars. The company laid off 1,360 people in February.

The world's third-largest aircraft producer said it was "revising downward all of its business and regional jets production rates and implementing measures to meet the continuing challenges facing the aviation industry."

While revenue from its aerospace unit fell 4 per cent, Bombardier was compensated by rising sales of trains in Britain, the Netherlands, France, Germany and Spain.

However, Bombardier's net income rose to 309 million dollars for the three months ended January 31, from 218 million dollars a year earlier, the Montreal-based company said in a statement. Its sales increased 3 per cent to 5.43 billion dollars.

"During the past year, we more than held our own as the world's financial markets tumbled and the global economy weakened. In fact, we reached a milestone with net income rising to 1 billion dollars, for the first time in our history," said chief executive Pierre Beaudoin in a statement.

"There is no doubt that we are going through challenging times and our business environment is changing fast." he said.

Bombardier also announced Thursday that it had won an order of about 188 million euros (249 million dollars) from Lloyds TSB and London Eastern Railways for 30 four-car trains and a three-year maintenance agreement. (dpa)