Bombardier sells aerostructures business to Spirit AeroSystems, reports Q3 loss
Spirit will pay US$500 million in cash.
MONTREAL—Bombardier Inc. has signed a deal to sell its aerostructures business to Spirit AeroSystems Holding Inc.
Under the agreement, Spirit will pay US$500 million in cash and assume liabilities with a total carrying value of more than US$700 million, including government refundable advances and pension obligations.
Spirit is expected to continue to supply structural aircraft components and spare parts for Bombardier Aviation’s Learjet, Challenger and Global families of aircraft.
News of the sale came as Bombardier, which keeps its books in U.S. dollars, reported a loss of US$91 million or six cents per diluted share on $3.72 billion in revenue in its third quarter. That compared with a profit of $149 million or four cents per share on $3.64 billion in revenue a year ago.
On an adjusted basis, Bombardier says it lost four cents per share in its most recent quarter compared with an adjusted profit of four cents per share in the same quarter last year.
Analysts on average had expected a loss of three cents per share, according to financial markets data firm Refinitiv.