What happened?

There are several reasons for the drop:

  • Most important: Bombardier said it is rethinking the JV with Airbus, seen as the lifeline of its delayed and over-budget jetliner program – costs with the new A220 plane (previously known as C-series) are rising, and break-even may be later than expected
  • The company issued a profit warning for FY19 results, due to challenges in the rail unit, which is the earnings and cash-flow driver. Revenue for 4Q19 is now expected at $4.2bn, below the lowest analyst estimate. Importantly, the free cash flow burn should be $1.2bn, double of expectations. Also this sets the tone for 2020…
  • Moody’s placed the B3 rating on negative outlook

 

 

 

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