Menu

Topics

Connect

Comments

Want to discuss? Please read our Commenting Policy first.

Bombardier’s shares plunge after it slashes earnings forecast for 2019

Bombardier Inc. says it expects its financial results for 2019 will fall short of its earlier guidance. Graham Hughes/The Canadian Press

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.

Story continues below advertisement

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.

Story continues below advertisement

The company is expected to release its fourth-quarter and full-year 2019 financial results on Feb. 13.

Advertisement

You are viewing an Accelerated Mobile Webpage.

View Original Article