This time it’s trouble in the rail business.
Despite repeated bailouts, Bombardier continues to struggle.
Their shares plunged 19% as of 9:32 eastern time, before recovering slightly to the still weak level of $1.99 as of this being written, still down 12.33%.
The company’s rail business is having serious problems, as noted by BNN Bloomberg:
“Additional outlays of as much as US$300 million are needed to complete late-stage train projects and meet delivery schedules, Bombardier said in an earnings release Thursday. The company predicted free cash flow usage of US$500 million, burning twice as much as the worst-case scenario in the previous forecast.”
Bombardier has failed to deliver on time in multiple contracts, including trains in Toronto, New York, and Switzerland.
Bombardier has also announced that they will be merging their three separate aerospace divisions into ‘Bombardier Aviation.’
Despite having received billions from Canadian taxpayers, Bombardier has paid out huge bonuses to their failing executives, have slashed jobs in Canada, and have sold off parts of their Canadian operations to foreign-owned companies.
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