Canada’s Bombardier cuts full-year profit, revenue forecast

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Canada's Bombardier cuts full-year profit, revenue forecast

FILE PHOTO: Logo of Bombardier is seen at an office building in Zurich, Switzerland, February 28, 2019. REUTERS/Arnd Wiegmann/File Photo

(Reuters) – Canada’s Bombardier Inc cut its full-year profit and revenue forecast on Thursday, as delays in some large projects hit its dominant transportation unit that makes rail cars.

The plane-and-train maker is nearing the end of a five-year turnaround plan after a round of heavy investment in plane production that drove the company to the brink of bankruptcy in 2015.

Bombardier cut its 2019 revenue estimate by $1 billion to $17 billion, while adjusted core earnings are expected to be in the range of $1.50 billion to $1.65 billion, compared with its prior expectation of $1.65 billion to $1.8 billion.

Montreal-based Bombardier also said it expects to deliver only 30 commercial planes, compared with 35 it had previously forecast, as the sale of its Q400 aircraft unit is now anticipated to close mid-year.

The company also forecast lower-than-expected adjusted core earnings, operating earnings and revenue for the first quarter, due to timing of aircraft deliveries, slower project ramp up at its transportation business and unfavorable currency swings.

Bombardier now expects revenue of about $3.5 billion for the three months to March 31, well below analysts’ estimate of $4.03 billion, according to IBES data from Refinitiv.

Adjusted core earnings and operating earnings are expected to be about $265 million and $170 million, respectively, compared with estimates of $334.97 million and $230.45 million.

Reporting by Arathy S Nair in Bengaluru; Editing by Anil D’Silva