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

  • Asian stocks lower after Wall Street falters

    Economic CTV News
    HONG KONG - Asian stocks are drifting lower on Thursday after a lacklustre performance on Wall Street. KEEPING SCORE: Tokyo's benchmark Nikkei 225 index dipped 0.3 per cent to 19,167.86 and South Korea's Kospi slipped 0.3 per cent to 2,161.05. Source
  • B.C. envoy says the window is open slightly for softwood lumber deal with U.S.

    Economic CTV News
    VICTORIA -- British Columbia's softwood trade envoy says there's a slight opportunity to quickly negotiate a new lumber agreement between Canada and the United States, but if a deal can't be reached by the summer or fall it could mean a lengthy fight. Source
  • Lululemon shares drop after weak outlook

    Economic CBC News
    Shares of Lululemon Athletica Inc. fell sharply in after-hours trading Wednesday after the athletic-inspired sportswear company delivered a weak outlook for the current quarter. The Vancouver-based company says it earned $136.1 million US, or 99 cents per share, for the three months that ended Jan. Source
  • Cenovus Energy buying most of ConocoPhillips's Canadian assets for $17.7B

    Economic CTV News
    CALGARY -- Cenovus Energy (TSX:CVE) announced Wednesday it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips, making the Houston-based company the latest international player to reduce its exposure to the oilsands. Source
  • Cenovus Energy buying most of ConocoPhillips' Canadian assets for $17.7B

    Economic CBC News
    Cenovus Energy of Calgary says it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips, making the Houston-based company the latest international player to exit the oilsands. Cenovus CEO Brian Ferguson is calling it a "transformational acquisition. Source
  • Canadian coal production hit three-decade low last year as demand wanes

    Economic CTV News
    CALGARY -- The National Energy Board says Canadian coal production dropped to a three-decade low last year as demand waned. Production came in at 60.4 million tonnes, a 12 per cent decline since 2013, and well off the peak of about 79 million tonnes reached in 1997, the NEB said Wednesday. Source
  • Etihad Airways responds to laptop ban with free iPad and Wi-Fi for 1st class

    Economic CBC News
    One Middle Eastern airline targeted by new U.S. rules banning computers on certain flights has responded by offering first and business class passengers complimentary use of a tablet computer with internet access while on board. Abu Dhabi-based Etihad Airways made the announcement on Wednesday, noting that so-called Premium passengers will be welcome to use the service as of Monday. Source
  • Sask. premier invites Calgary energy companies to move to Saskatchewan

    Economic CBC News
    Saskatchewan Premier Brad Wall is taking a turf war with Alberta to its economic heart, inviting energy companies based in Calgary to move their headquarters to his province. In a letter to Whitecap Resources, Wall offers to subsidize relocation costs, trim taxes and royalties and help find space in unused government buildings if the oil and gas firm moves to Saskatchewan. Source
  • Etihad to lend U.S.-bound passengers iPads as ban workaround

    Economic CTV News
    DUBAI, United Arab Emirates -- One Mideast airline affected by the ban on most electronics in the cabins of U.S.-bound flights will lend iPads to its top-paying travellers. Etihad Airways said on Wednesday that it will offer the tablets to U.S. Source
  • Bombardier senior execs earned nearly 50 per cent more in 2016

    Economic CTV News
    MONTREAL - Bombardier's senior executives saw their compensation rise by nearly 50 per cent last year at a time when it laid off thousands of workers, sought government aid and saw the first CSeries passenger jet take flight. Source