Despite announcement of mass layoffs, Bombardier predicts 10% revenue boost for 2019,
Forecast comes despite stock dive
MONTREAL— Bombardier Inc. says its largest business jetliner, a massive rail backlog and aftermarket services will propel the plane-and-train maker to10 per cent revenue growth in 2019, roughly in line with analyst expectations.
The 2019 guidance comes in the wake of a 60 per cent stock dive over the past five months and recent restructuring plans that will see 5,000 employees — including 3,000 in Canada — lose their jobs over the next five years.
The Montreal-based company, which reports in U.S. dollars, forecasts total revenue of about $18 billion next year, as the freshly certified Global 7500 — its longest-range business jet — enters into service. The jetliner, sold out through 2021, will contribute to an expected $6.25 billion in business aircraft revenue. Both figures align roughly with analyst expectations, according to Thomson Reuters Eikon.
A $34-billion rail backlog will furnish more than 80 per cent of the railway division’s projected income of $9.5 billion for 2019. The company forecasts a 30 per cent surge to between $1.15 billion and $1.25 billion in total earnings before interest, tax and special items.
Bombardier estimates aftermarket revenue will grow to about $4 billion in 2019 from about $3.5 billion in 2018 as repairs and other services play out across its base of more than 100,000 rail cars, 4,700 business jets and 1,250 regional jets. Chief executive Alain Bellemare left the door open last month to more cuts down the line, following mass layoffs over the past three years that knocked off 14,500 positions around the world.