Bombardier shares drop after it says revenue will fall short
Shares in Bombardier Inc. plunged more than 30 per cent in early trading
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, and closed at $1.39.
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.