Bombardier Cuts 2019 Revenues Guidance
(RTTNews) - Bombardier Inc. (BBD_B.TO, BBD_A.TO) said that it now expects full year 2019 revenues to be about $17.0 billion, about $1.0 billion lower than originally anticipated, due to revised expectations at Transportation and Commercial Aircraft. The Year over year, the revised guidance represents approximately 10% organic growth over 2018, excluding currency effects and divestitures.
The revenue guidance change was reflected by a combination of about $250 million in lower revenues from the earlier than anticipated closing of the sale of Business Aircraft's training activities and the Q400 program - which is now expected to close mid-year; and about $750 million in lower revenues at Transportation, driven by production ramp-up adjustments and unfavourable currency impact.
The company now expects to report full year consolidated adjusted EBITDA of $1.50 billion-$1.65 billion, implying growth of almost 20% year over year. Consolidated adjusted EBIT guidance is also revised, and is now expected at $1.0 billion - $1.15 billion.
Bombardier now expects Transportation's revenues to be $750 million lower than its original full-year guidance, at approximately $8.75 billion. This reduction was hurt by approximately $500 million from slower production ramp-up, which defers revenues, and approximately $250 million of unfavourable currency impact at current rates.
Bombardier noted that it will release its complete first quarter 2019 financial results on May 2, 2019.
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