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An artist’s conception of Bombardier’s new C Series jetliner. Bombardier is being careful with cash because the aerospace division is ‘in a period of peak spend for several of our development programs,’ a spokeswoman said. Currently, the company is testing systems on the C Series, and hopes to take the first flight by the end of the year.
An artist’s conception of Bombardier’s new C Series jetliner. Bombardier is being careful with cash because the aerospace division is ‘in a period of peak spend for several of our development programs,’ a spokeswoman said. Currently, the company is testing systems on the C Series, and hopes to take the first flight by the end of the year.
(STR/REUTERS)

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With bad news priced in, Bombardier could surprise in 2013

Sean Silcoff

 — The Globe and Mail

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Disappointments are becoming a quarterly event for Bombardier Inc. Its third-quarter earnings announcement Wednesday was no exception.

Revenue for the period ended Sept. 30 was soft at $4.3-billion (U.S.), margins were anemic and cash flow fell well short of expectations, prompting Moody’s to downgrade Bombardier’s credit rating outlook to “negative” from “stable.” The biggest headline merely confirmed a disappointment everyone was expecting, as Bombardier delayed the first test flight of its new transcontinental C Series airliner by six months from its original December, 2012, target.