Bombardier Inc. reported a wider-than-expected fourth-quarter loss as revenue declined in the company’s two biggest units: business jets and trains.
Canada’s largest aerospace company posted an adjusted loss of 7 cents a share, after breaking even a year earlier, according to a statement Thursday. Analysts had predicted a loss of 3 cents, according to the average of estimates compiled by Bloomberg. Sales tumbled 13 percent to $4.38 billion, while analysts had anticipated $4.63 billion.
Chief Executive Officer Alain Bellemare has been stepping up efforts to reshape the manufacturer after shares fell to a 26-year low in 2016. He announced about 14,500 jobs last year to overcome cost overruns and a delay of more than two years on the $6 billion program to develop the C Series jetliner—a competitor to single-aisle planes from Boeing Co. and Airbus Group SE.
“As we begin 2017, we are confident in our strategy, our turnaround plan and in our ability to unleash the full value of the Bombardier portfolio,” Bellemare said in the statement.
Bombardier is ramping up output of its flagship C Series, which entered service in July and will probably contribute to losses for the first two years of production. The company generated $496 million in cash in the fourth quarter. Analysts had predicted $270 million.
The Montreal-based company reaffirmed its forecast that revenue will increase by a low-single-digit percentage in 2017, following two years of declines.