Bombardier is predicting lower than expected results for its first quarter 2019. The Canadian firm says revenue at its commercial aircraft business is expected to be about $250 million lower, coming in at $1.15 billion.
The lower estimate is due to an earlier than anticipated closing of the sale of its business aircraft training business and the Q400 program, the company said.
Transportation revenue is expected to be about $750 million lower, coming in at $8.7 billion due to what it said was production ramp-up adjustments and unfavourable currency impact.
Meanwhile, Bombardier's business aircraft division is expected to receive no change, staying put at $6.25 billion. Business aircraft deliveries for the quarter totalled 24 aircraft (two light, 14 medium, and eight large jets).
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.
“We had a soft first quarter driven by the timing of aircraft deliveries, foreign exchange headwind and a slower production ramp-up at Transportation,” said Alain Bellemare, president and chief executive officer, Bombardier. “We expect to recover and meet our aircraft delivery and financial performance targets for the year in our aerospace businesses. At Transportation, we are adjusting our 2019 guidance to reflect both changes to our production ramp up and cost pressure from a few challenging legacy projects as we continue to drive our transformation.”
Aerostructures and Engineering Services guidance remains unchanged for the year, as the integration of the Global 7500 wing operations is progressing on plan, with revenues ranging between $2.25 billion and $2.50 billion, and approximately 7.5% adjusted EBIT margi