Bombardier, Inc. (TSX:BBD.B) released its earnings on Friday and reported a quarterly profit, beating analyst forecasts. The company said it expected earnings before interest and taxes to beat its own projections in 2017. Adjusted net income was announced at $39 million for the quarter - $0.02 per share. Revenue fell to $4.1 billion – down 5%. Free cash flow was reported at $570 million in the quarter and $1.2 billion for the year.
The stock has risen 11% so far in 2017 and 22% year over year. It was priced at $2.41 before the beginning of Friday’s trading session. The company has faced questions over the progress of its CSeries and Global 7000 luxury aircraft, but sales saw a boost aided by an increase in production. Though there were several positives, Bombardier still reported a $296 million dollar second-quarter loss due to restructuring costs – representing a loss of $0.13 per share.
This month it was reported that Bombardier and German conglomerate Siemens were in advanced talks to combine rail operations. The agreement could be announced in early August as the Siemens advisory board will hold a meeting on August 2. Leaked details suggest that Bombardier would take more than a 50% stake in joint rolling stock operation, while Siemens would take an 80% stake in a joint venture for signaling technology.
Investors will be keeping an eye on the share price to see how it responds to these earnings on the last trading day of the week.
