Bombardier Reports Quarterly Loss
August 5, 2016
Bombardier swung to a second quarter net loss as business jet revenue fell on lower production.
The Montreal-based plane and train maker posted a net loss of USD$490 million for the quarter ended June 30, compared with a profit of USD$125 million a year earlier.
Consolidated revenue fell 6.7 percent to USD$4.31 billion.
While revenue from commercial aircraft was up 28 percent at USD$764 million, business aircraft revenue was down 19 percent at USD$1.47 billion as it scaled back production.
The company delivered 27 commercial and 42 business aircraft in the three months.
During the quarter Bombardier agreed a USD$1 billion investment by the Government of Quebec in return for a 49.5 percent equity stake in a newly created limited partnership.
Brazil said last month it may launch a trade challenge against Canada over state funding of the CSeries.
Bombardier delivered the first CSeries aircraft, a CS100, to Swiss International Air Lines on June 29. It entered commercial service on July 15, 2016.