Bombardier expects to fall short of guidance, reassessing Airbus deal
By CP STAFF
Industry Aerospace Manufacturing aerospace airbus Bombardier manufacturingExpects consolidated revenue of about $15.8 billion, short of expected $16.5 billion to $17 billion.
Exterior shot of the CS300. PHOTO: BOMBARDIER
MONTREAL — Bombardier Inc. says 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.
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.
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.
Shares in Bombardier plunged more than 30% after the announcement.
The stock was down 57 cents at $1.22 in early trading on the Toronto Stock Exchange.
The company is expected to release its fourth-quarter and full-year 2019 financial results on Feb. 13.
