Bombardier Is Facing Pressure To Pay Down Its Debt
Bombardier Inc (BBDb.TO) shares fell 37% today...
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(Reuters) - Bombardier Inc (BBDb.TO) shares fell 37% on Thursday after the company warned its 2019 profits would be lower because of problematic rail contracts and said it might have to write down the value of a plane partnership (CSeries/A220) with Airbus (AIR.PA).
Bombardier, which sold control of the A220 narrowbody jet to Airbus in 2018 as part of a long-running drive to put it on a solid financial footing, said the venture needed more investment and might be subject to a writedown during fourth quarter results next month.
Free cash flow, a metric closely watched by investors, is expected to be negative $1.2 billion in 2019, compared with the previously forecast negative $500 million.
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Questions over the company's stake in the A220 come as Bombardier is facing pressure to pay down its debt and bolster its rail unit, said a source familiar with the company's thinking....