Bombardier Net Falls as Sales Decline in Train Division |
| bloomberg - Aug 9, 2012 |
Bombardier Inc. (BBD/B) profit dropped 14 percent in the second quarter as lower sales of locomotives and rail cars eroded growth generated by the aerospace business.
Net income dropped to $182 million, or 10 cents a share, Bombardier said in a statement. Sales of $4.17 billion trailed analysts’ average estimate of $4.6 billion as transportation revenue fell 30 percent.
Bombardier blamed the decline in its transportation business on the completion of some contracts, mostly in the Asia Pacific region and Europe. Quarterly orders tumbled 26 percent to $2.9 billion, and the business’s backlog slipped to $31.7 billion from the end of last year as the U.S dollar strengthened against the Brazilian real and the euro.
“Several new rolling stock contracts remained in the lower margin and revenue conversion start-up phase,” Walter Spracklin, an analyst with RBC Capital Markets in Toronto, said in a note to clients. Bombardier is still winning “sizable follow-on and new contracts” and benefiting from “resilient” rail-industry markets, he said.
Read Full Article from bloomberg
- Posted: 2012-08-09 16:05:25
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
