Bombardier cuts revenue expectations, increases cash use guidance on lower 2016 C Series deliveries
Bombardier announced (06-Sep-2016) cutting planned C Series deliveries for 2016 from 15 to seven aircraft will result in lower revenues at Bombardier Commercial Aircraft for 2016, without affecting EBIT materially. On a consolidated basis, 2016 revenues and EBIT guidance are reaffirmed. Guidance adjustments as a result of the delay include:
- Bombardier now expects to be close to the lower end of the USD16.5 to USD17.5 billion revenue guidance range;
- Free cash flow usage is expected to be in the range of USD1.15 to USD1.45 billion (previous forecast: USD1.0 billion to USD1.3 billion);
- EBIT is expected to be at the upper end of the USD200 to USD400 million range.
Bombardier also stated it expects to end 2016 with a strong liquidity position and remains on track to achieve both its 2018 cash flow neutral goal and its 2020 turn-around plan objectives. [more - original PR]