Bombardier Inc. lost as much as a quarter of its value and bonds plunged after the company cut its 2019 sales forecast amid new struggles at its train-making business.

A slower production ramp-up on some rail projects dented first-quarter sales and accounted for most of the $1 billion cut to the 2019 revenue outlook, Bombardier said in a statement Thursday. The timing of aircraft deliveries also hurt first-quarter results, though the company said it should be able to recover the shortfall during the rest of the year.

“We had a soft first quarter driven by the timing of aircraft deliveries, foreign-exchange headwind and a slower production ramp-up at Transportation,” which makes trains, Chief Executive Officer Alain Bellemare said in the statement.

The weaker forecast adds to the pressure on the rail-equipment division, Bombardier’s biggest, which has been plagued by missteps on high-profile projects in New York, Toronto and Europe. Bellemare, who is in the fourth year of a five-year turnaround plan, is counting on the business for about half of Bombardier sales as he pares the commercial-aircraft business to focus on making trains and private jets.

“This company has been in a state of constant restructuring, it’s been a consistent over promises under deliver,” said John O’Connell, CEO of Toronto-based investment manager Davis Rea Ltd. The timing of the forecast cut is “dodgy,” considering that Bombardier just did its liability management last month.

The company’s widely traded B shares sank 17 percent to C$2.43 at 9:34 a.m. in Toronto after sliding as much as 25 percent for the biggest intraday drop in five months. Bombardier had advanced 44 percent this year through Wednesday, compared with a 20 percent gain for a Standard & Poor’s index of Canadian industrial companies.

Bond Drop

Bombardier’s $2 billion in bonds due 2027 dropped as much as 3.1 percent, the most since they started trading in March. Notes due 2023 declined 3 cents to 101 cents on the dollar. The cost of insuring the company’s bonds in credit-default swaps markets for five years widened 66 basis points to 422 basis points, the most since Nov. 16, according to data provider CMA.

Sales from rail will be about $750 million lower for the year, as Bombardier seeks to better synchronize output with customer demand. Revenue will take an additional $250 million blow because of fewer aircraft deliveries, as the sale of Bombardier’s Q400 turboprop program closes by mid-year, more quickly than expected.

Earnings before interest and tax will be $1 billion to $1.15 billion, Bombardier said. The previous forecast was $1.15 billion to $1.25 billion.

The Montreal-based company will release its full first-quarter earnings report May 2.