Bombardier expected to release weak results

MONTREAL - Bombardier ends a difficult fiscal year today when it releases what are expected to be weak financial results that could be overshadowed by layoffs.

See Full Article

The Montreal-based aircraft maker could be poised to have lost more than US$4 billion in 2015 on lower sales and charges. Adjusted profits, excluding one-time items, are forecast to drop in half in both the fourth quarter and over the full year, according to analysts polled by Thomson Reuters.

Bombardier (TSX:BBD.B) is forecast to earn US$37.3 million - or two cents per share - in adjusted profits on US$5.48 billion of sales in the quarter, and US$342.2 million - or 17 cents per share - on US$18.78 billion of revenues for the year.

Uncertainty about the company's future has caused deep anxiety among employees, says union representative Dave Chartrand.

"I've rarely seen the membership on the floor, when you walk around, be as concerned and as worried as they are right now," he said in an interview.

A production rate cut for the Q400 turboprop is seen as a possibility, mainly affecting workers in Toronto and Mexico.

"That shouldn't come as a surprise for anyone considering when you look at the order book," said Chris Murray of AltaCorp Capital, adding other aircraft programs have already been hit or are stable enough to avoid cuts.

Industry analysts will be looking for Bombardier to answer questions about the expected demand in 2016 for the plane, along with other commercial and business aircraft.

Walter Spracklin of RBC Capital Markets said Bombardier could announce a one-for-10 reverse stock split that would push the battered stock above the $1 threshold.

He doesn't foresee learning much more about a possible financial aid package from Ottawa.

Economic Development Minister Navdeep Bains said that the government continues to evaluate Bombardier's business case.

"We want to make sure we look at the long-term perspective of the sector and the economy as well and that's how we will be making our decisions," he said in Ottawa.



Advertisements

Latest Economic News

  • Quebec's construction sector hit by mass walkout

    Economic CTV News
    MONTREAL - A union alliance representing about 175,000 Quebec construction workers has launched an unlimited general strike. The walkout began after construction companies and labour federations continued to negotiate ahead of a strike deadline of midnight Tuesday, but were unable to sign new collective agreements. Source
  • BMO's Q2 net income up 28 per cent to $1.25 billion, dividend going up

    Economic CTV News
    TORONTO -- The Bank of Montreal (TSX:BMO) says its second-quarter net income grew by 28 per cent to $1.25 billion on higher profits from its wealth management and capital markets divisions. The Toronto-based bank also says its quarterly dividend will rise by two cents to 90 cents per share, payable on Aug. Source
  • Bitcoin 'mania' grows, as virtual currency passes $2,000 US mark

    Economic CBC News
    Bitcoin, the decentralized digital currency with global name recognition, has jumped in value once again. The value of the cryptocurrency surged past $2,000 US on May 20, according to data from institutional digital currency exchange GDAX. Source
  • Toronto tech firms seeing more interest from U.S. job seekers — and not just because of Trump

    Economic CBC News
    Last month, Roy Pereira, CEO of Toronto startup zoom.ai, received so many applications for a software engineering position from U.S.-based job seekers that he thought they were fake. "I thought it was maybe bots spamming us," he remembered, noting only about one per cent of the company's past applications had come from the States. Source
  • 'Bitcoin is a classic mania': Value of cryptocurrency surges 400% in a year

    Economic CBC News
    Bitcoin, the decentralized digital currency with global name recognition, has jumped in value once again. The value of the cryptocurrency surged past $2,000 US on May 20, according to data from institutional digital currency exchange GDAX. Source
  • Bank of Canada expected to stick with interest rate despite strong economy

    Economic CTV News
    OTTAWA - The Bank of Canada is expected to stick with its benchmark interest rate today even though the economy is off to a stronger-than-expected start in 2017. Analysts widely predict governor Stephen Poloz to keep the rate locked at its very low level of 0.5 per cent as uncertainty continues to swirl around the U.S. Source
  • China stocks fall after rating cut as other Asian markets post gains

    Economic CTV News
    BEIJING - Chinese stocks sank Wednesday after Moody's cut Beijing's government debt rating and other Asian markets rose following Wall Street's advance. KEEPING SCORE: The Shanghai Composite Index lost 0.6 per cent to 3042.24 points and Hong Kong's Hang Seng shed 0.1 per cent to 25,369.93. Source
  • Moody's cuts China rating over rising debt, slowing growth

    Economic CTV News
    BEIJING - China has criticized a decision by the Moody's rating agency to cut its rating for Chinese government debt and defended Beijing's finances and economic reforms. A finance ministry statement complained Moody's used "inappropriate methods" when it cut Beijing's credit rating and overestimated the scale of its economic difficulties. Source
  • Alberta government introduces bill to cap electricity rates to stop price spikes

    Economic CTV News
    EDMONTON -- Electricity rates in Alberta would be capped under legislation the provincial government introduced Tuesday, a move it says will protect customers from major price spikes. The government says the four-year cap of 6.8 cents per kilowatt hour is expected to be in place by June 1. Source
  • Toronto stock index climbs on banks, industrials

    Economic CBC News
    Canada's main stock index eked out a moderate gain Tuesday as financial stocks got a boost ahead of Canadian bank earnings this week. The Toronto Stock Exchange's S&P/TSX composite index climbed 18.48 points to 15,476.94, also helped by a rise in industrials and utilities stocks. Source