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Be the first with the news that moves the market- Bombardier (BBD.B) has revealed its revenues fell approximately C$2.1 billion in the second quarter, compared to the previous corresponding period
- Revenue went from approximately $5.72 billion in 2019’s June quarter to approximately $3.58 billion this year
- The drop in revenue was attributed to operational suspension resulting from the COVID-19 pandemic, as well as the virus’ ongoing impact on the industry
- The net loss for the quarter was $296 million, compared to a net loss of approximately $47.85 million in last year’s corresponding period
- Bombardier (BBD.B) is down 2.3 per cent and is trading at 42 cents per share at 2:45 pm EDT
Bombardier (BBD.B) has revealed its revenues fell approximately C$2.1 billion in the second quarter, compared to the previous corresponding period.
Revenue went from approximately $5.72 billion in 2019’s June quarter to approximately $3.58 billion this year. The company lost approximately $1.19 billion in revenue from its aviation business segment.
Bombardier put this down to a much lower level of production activity and deliveries, following operational suspension in Canada, Belfast and Mexico after the onset of the COVID-19 pandemic.
In the last weeks of April, the company resumed operations, delivering 20 business aircrafts during the quarter. In its train business operations were suspended throughout the business.
This led to a number of revised estimated on late-stage projects, primarily being developed at the company’s UK and Germany facilities.
This resulted an $800 million decrease in adjusted EBITDA across the business, from approximately $414 million last year to negative $424 million this year.
The net loss for the quarter was $296 million, compared to a net loss of approximately $47.85 million in last year’s corresponding period.
Eric Martel, President and CEO of Bombardier, said the company was continuing to take the correct actions to manage the impact of COVID-19 on the company while protecting the business for the long-term.
“We begin the second half of the year with our realigned to current market conditions and customer requirements.
“We’re also improved our liquidity position with solid cash management, cost reduction actions and a new secured credit facility, providing additional flexibility as we work to address our balance sheet challenges and close the sale of Bombardier Transportation and our aero structure business,” he said
Bombardier (BBD.B) is down 2.3 per cent and is trading at 42 cents per share at 2:45 pm EDT.
