Bombardier deep in the red

Bombardier deep in the red

The ailing canadian aircraft and train manufacturer bombardier closed the past fiscal year with deep red figures.

Fourth-quarter operating income was a loss of 1.7 billion dollars (1.6 billion euros), the company announced in montreal on thursday. In the corresponding period of the previous year, there had been a profit of 342 million dollars.

One of the reasons for the sharp decline is the high cost of the european railroad business. Bombardier initially did not respond to media reports that the division is to be sold off. Speculation about an imminent deal with the french company alstom had given the share price a strong boost the previous day.

Canadian income fell by two percent to 4.2 billion dollars in the three months to the end of december. In fiscal 2019, bombardier made a net loss of $1.6 billion, compared with a net profit of $318 million the previous year. Sales fell by three percent to 15.8 billion dollars.

Bombardier is in dire financial straits and had already announced before the presentation of the financial statements that it was pulling out of its last major aircraft program. Airbus and the canadian province of quebec take over bombardier’s remaining share in the joint ventures for the short- and medium-haul A220 jet.

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