Bombardier Q2 net loss widens while revenues plunge due to COVID-19
August 6, 2020 by The Canadian Press
MONTREAL – Bombardier Inc. says its net loss surged to US$223 million in the second quarter on a big drop in revenues due to pandemic-related disruptions.
The Montreal-based transportation company, which reports in U.S. dollars, says it lost 13 cents per diluted share, compared with a loss of four cents per share or $36 million a year earlier.
The adjusted loss was $631 million or 30 cents per share, versus a loss of $47 million or four cents per share in the second quarter of 2019.
Revenues for the three months ended June 30 plunged 37 per cent to $2.7 billion from $4.3 billion a year ago, reflecting lower production activity and deliveries as operations were temporarily suspended for several weeks due to the global COVID-19 pandemic.
Bombardier was expected to lose 11 cents per share in adjusted profits on $2.48 billion of revenues, according to financial data firm Refinitiv.
The company, which will focus on business aircraft after the sale of its railway operations to Alstom are completed, says early trends are encouraging from new interest in private air travel.
“Bombardier continues to take the right actions to manage the impact of the ongoing public health crisis while protecting the business for the long-term,” stated CEO Eric Martel.
“We begin the second half of the year with our global operations safely and successfully resumed and our production rates and workforce realigned to current market conditions and customer requirements.”