Bombardier Shares Drop Again

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.

Spencer Fernando

Photo – YouTube

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niclal
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niclal

Citizen dollars are NOT there to bail out incompetent corporations

Pancakerachelcorrie
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Pancakerachelcorrie

The cult of political corporations has to come to an end or canada will be a colony of china or saudi arabia

Donald O'Kane
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Donald O'Kane

DO NOT BAIL THEM OUT AGAIN!!! They care more about giving their executives large bonuses than they do about meeting their deadlines or their employees!

NancyW
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NancyW

Since 1966 Canada has also been “helping out” always struggling Bombardier, by now we should probably own them, except we have not had a competent Canadian government to run a business and should not have to own them either, Other good Canadian businesses have closed, left or sold out to foreigners, but are not “saved” with Canadian taxes, or CPP invested money to actually help Canadians, or make this given tax money into loans as some times they have done or actually force them to have good business sense management that earns their too high salaries never mind the huge… Read more »