UPDATE 3-Bombardier's 2018 revenue forecast disappoints, shares fall

From Reuters - December 14, 2017

(Reuters) - Bombardier Inc said on Thursday it was hopeful that it might turn free cash flow positive next year even as the ailing company forecast 2018 revenue that fell far short of expectations.

Shares in Bombardier were down 1.9 percent in late morning trading on the Toronto Stock Exchange.

The loss-making plane and train maker said it expected to deliver 25 more commercial aircraft next year, compared with 2017 projections.

The turnaround story continues to unfold as laid out by management, which incrementally continues on the path to rebuilding credibility, AltaCorp Capital analyst Chris Murray wrote in a note.

Bombardier is in the middle of a five-year turnaround plan to cut costs and boost margins after years of heavy investments in two aircraft programs pushed it to the brink of bankruptcy in 2015.

In October, the company agreed to sell a controlling stake in its CSeries jetliner program - struggling with ballooning costs and delays - to Airbus SE.

Bombardier said on Thursday that it expects free cash flow to breakeven in 2018, plus or minus $150 million, and earnings before interest, tax and special items between $800 million and $900 million.


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