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Bombardier profit misses as pandemic weighs on transportation unit, jet deliveries
[MONTREAL] Plane and train maker Bombardier missed estimates for third-quarter profit on Thursday, hurt by weak performance in its aviation and transportation units due to coronavirus-led disruptions.
The Montreal-based company, which is in the process of closing a deal to sell its rail division to French train maker Alstom, said revenue from its transportation unit fell 2.5 per cent.
Business jet deliveries were also lower in the quarter, falling to 24 units from 31 a year earlier, but revenue from the business rose about 10 per cent as its flagship Global 7500 jet made up for a third of those deliveries.
Bombardier's EBITDA and margins took a hit on costs related to the Global 7500 jets and lower deliveries during the quarter.
Bombardier, which aims to break even on free cash flow in 2020, reported quarterly free cash flow of US$706 million.
The company reported adjusted earnings before interest, taxes, depreciation and amortisation of US$176 million for the quarter ended Sept 30, compared with US$255 million a year earlier.
Analysts on average were expecting Ebitda to be US$179.8 million, according to Refinitiv data.
Revenue fell 5.3 per cent to US$3.53 billion.