Bombardier down US$1B

Bombardier Inc. is cutting its financial guidance for the year due to lower expectations at its transportation business and commercial aircraft division.

The company, which keeps its books in U.S. dollars, says it now expects full-year revenues to be approximately US$17 billion, roughly $1 billion lower than originally anticipated.

Bombardier says revenue at its commercial aircraft business is expected to be about $250 million lower due to an earlier than anticipated closing of the sale of its business aircraft training business and the Q400 program.

Transportation revenue is expected to be about $750 million lower due to what it said was production ramp-up adjustments and unfavourable currency impact.

Bombardier's expectations for adjusted earnings before interest and taxes were also reduced by about $150 million due to the transportation division.

Adjusted EBIT is now expected to come in between $1 billion and $1.15 billion compared with earlier expectations for between $1.15 billion and $1.25 billion.

Bombardier is expected to release its full first-quarter financial results on May 2.

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