Salem Radio Network News Monday, November 30, 2020

Business

Bombardier profit misses as pandemic weighs on transportation unit, jet deliveries

(Reuters) – Plane and train maker Bombardier Inc missed estimates for third-quarter profit on Thursday, hurt by weak performance in its aviation and transportation units due to coronavirus-led disruptions.

The Montreal-based company, which is in the process of closing a deal to sell its rail division to French train maker Alstom SA, said revenue from its transportation unit fell 2.5%.

Business jet deliveries were also lower in the quarter, falling to 24 units from 31 a year earlier, but revenue from the business rose about 10% as its flagship Global 7500 jet made up for a third of those deliveries.

Bombardier’s EBITDA and margins took a hit on costs related to the Global 7500 jets and lower deliveries during the quarter.

Bombardier, which aims to break even on free cash flow in 2020, reported quarterly free cash flow of $706 million.

The company reported adjusted earnings before interest, taxes, depreciation and amortization of $176 million for the quarter ended Sept. 30, compared with $255 million a year earlier.

Analysts on average were expecting EBITDA to be $179.8 million, according to Refinitiv data.

Revenue fell 5.3% to $3.53 billion.

(Reporting By Allison Lampert in Montreal and Sanjana Shivdas in Bengaluru; Editing by Aditya Soni and Anil D’Silva)

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