Bombardier slashes earnings forecast on challenging rail projects

Bombardier slashes earnings forecast on challenging rail projects

Canadian plane and train maker Bombardier Inc said on Thursday it expects full-year results to be lower than previously forecast, hurt partly by challenging rail projects.

Bombardier now expects 2019 adjusted earnings before interest and taxes (EBIT) to be about $400 million, compared with a previously forecast range of between $700 million and $800 million.

The company said it also expects the timing of milestone payments and new orders at its Transportation unit to weigh on 2019 results.

Bombardier also said it was reassessing its ongoing participation in a venture controlled by Airbus that runs the A220 jetliner programme, which Airbus bought from Bombardier in 2018.

Airbus said it remains committed to funding the A220 jetliner.

“Airbus’ position is unchanged. Airbus remains committed to the success of the A220 programme and will continue to fund the programme on its way to breakeven,” an Airbus spokesman said by email.

More to come …

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