Shares in Bombardier Inc. plunged more than 30 per cent after it said it expects its financial results for 2019 will fall short of its earlier guidance.
The company says the miss is mainly due to actions taken to resolve challenging rail projects, the timing of milestone payments and new orders and the delivery of four business jets slipping into the first quarter of 2020.
The stock was down 57 cents at $1.22 in early trading on the Toronto Stock Exchange.
READ MORE: New York City pulls 300 Bombardier subway cars amid safety concerns
Bombardier says it expects consolidated revenue for 2019 to total about $15.8 billion and consolidated adjusted earnings before interest, taxes, depreciation and amortization of about $830 million.
In October, the company had said it expected revenue between $16.5 billion and $17 billion for the year and adjusted earnings before interest, taxes, depreciation and amortization between $1.2 billion and $1.3 billion.
READ MORE: Bombardier joint venture awarded $427M high-speed train contract in China
Bombardier also says it is reassessing its partnership with Airbus regarding the A220, which was called the C Series before it gave up a controlling stake in the program in 2018 to the European aircraft maker.
The company is expected to release its fourth-quarter and full-year 2019 financial results on Feb. 13.
- A ‘zombie’ virus is raging among raccoons. What to know
- N.S. couple felt they won ‘doctor lottery’ after years on wait-list. Now they’re back on it
- ‘Summer of discontent’ coming over public service in-office order: unions
- Canadian diplomat, RCMP officer praised sanctioned Haitian businessman: Emails
Comments