First-quarter earnings fell at Bombardier Inc after the company took a charge for job cuts at its train-making unit, and disappointing overall results sent its share price down 15 percent on May 30.
Bombardier, the world's third-largest civil aircraft maker and No 1 manufacturer of trains, earned $24 million, or 1 cent a share, in the quarter ended April 30. That compares with a profit of $55 million, or 3 cents a share, a year earlier.
Bombardier took a $24-million charge for job cuts in the quarter, whereas it had an $8-million gain a year earlier.
Income from continuing operations before special items was $43 million, or 2 cents a share, compared with $28 million, or 1 cent a share, a year earlier. Analysts had expected Bombardier to earn 3 cents a share, before special items, according to Reuters Research.
Bombardier's class B shares fell 60 Canadian cents or 15 percent to C$3.37 in early trading on the Toronto Stock Exchange. Claude Proulx, analyst at BMO Nesbitt Burns, downgraded his rating on Bombardier shares to underperform, citing flat results in the aerospace segment and a marginal improvement in the rail-making unit.
Bombardier said it had cash and equivalents of $2.2 billion, after net payment of $321 million of long-term debt. Its order backlog was $32.3 billion. In aerospace, earnings before financing income and expense and income taxes rose to $55 million from $52 million.
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