The Montreal, Canada-based plane and train manufacturer saw revenues slip 6.7 percent year-over-year to $4.31 billion due to tepid demand for business jets and startup costs related to production of its new C Series commercial aircraft.
Bombardier Inc. posted a $490 million loss in second quarter 2016 compared with a $125 million profit the previous year, according to the company’s most recent financial statements.
The Montreal, Canada-based plane and train manufacturer, which reports earnings in U.S. dollars, reported a loss per diluted share (EPS) of $0.24 compared with a $0.06 per share gain in second quarter 2015 as revenues slipped 6.7 percent year-over-year to $4.31 billion.
Bombardier attributed the loss primarily to tepid demand for business jets and startup costs related to production of its new C Series commercial aircraft.
After several missteps saw the company fall into considerable debt, Bombardier brought in Alain Bellemare in early 2015 to serve as chief executive officer and oversee a turnaround program aimed at returning the company to profitability.
Bellemare reorganized company management, cut costs, and pursued new orders for the C Series aircraft, which promises greater fuel efficiency and operating performance compared with rival offerings from Boeing and Airbus.
“We continue to make very good progress executing our turnaround plan,” Bellemare said of the second quarter results. “We delivered on our financial commitments, achieved our program milestones and positioned Bombardier to meet both our full year guidance and 2020 goals.
“This was a pivotal quarter for the C Series as both variants are now certified and the program has begun generating revenue,” he added. “Having firmly placed Bombardier on a path to profitable earnings growth and cash generation, we remain focused on delivering customer and shareholder value by improving productivity, executing flawlessly on our programs and applying a disciplined and proactive approach to our portfolio.”
Bombardier reports $490m loss in Q2 2016
