Canadian Manufacturing

Bombardier expects to fall short of guidance, reassessing Airbus deal

The train and plane maker expects consolidated revenue of about $15.8 billion, short of expected $16.5 billion to $17 billion



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.

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

News from © Canadian Press Enterprises Inc. 2020

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