Bombardier posts revenue loss yet reaffirms 2017 outlook
Bombardier's full-year revenue fell by US$1.8 billion from 2015 to $16.34 billion last year.
MONTREAL — Bombardier Inc. says it had a US$981 million net loss last year.
That was an improvement over 2015, when the Montreal-based company’s full-year loss was more than five times bigger at US$5.34 billion.
The company also affirmed its guidance for 2017 and highlighted positive performance markers as it continues to executes its turnaround plan.
“Our turnaround plan is in full motion,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “In 2016, Bombardier delivered on its financial commitments. We met our program milestones and we’ve positioned the Company to achieve all of the financial goals in our five-year turnaround plan, including being cash flow break-even in 2018.”
Its full-year revenue — reported in U.S. currency — fell by $1.8 billion from 2015 to $16.34 billion last year.
Bombardier Aerospace, which is the world’s third-biggest aircraft manufacturer, has been struggling to launch its new generation of commercial jets — the CSeries — after more than a decade of preparations.
Meanwhile, the Bombardier Transportation mass transit division has been embroiled in a highly public dispute over a contract for a new rail line being constructed through mid-town Toronto.
The company is also the focus of a recently filed complaint at the World Trade Organization, after Brazil and its largest aircraft manufacturer accused the Canadian and Quebec governments of providing unfair financial assistance to Bombardier.
For the fourth quarter ended Dec. 31, Bombardier had a net loss of $259 million or 12 cents per share. That compared with a much bigger net loss of $677 million or 31 cents per share in the fourth quarter of 2015.
Fourth-quarter revenue was down 12.7 per cent to $4.38 billion from $5 billion a year earlier.
“As we begin 2017, we are confident in our strategy, our turnaround plan and in our ability to unleash the full value of the Bombardier portfolio,” Bellemare continued. “We remain focused on improving operational efficiency, flawlessly ramping up our new programs and maintaining a disciplined and proactive approach to deliver value to customers and shareholders in any market environment.”