The news sent its shares tumbling on the Nasdaq -- it was down about 18 percent in mid-morning trade.

Bombardier now expects its 2019 earnings to fall in the range of US $1.2-$1.3 billion, down from its previous forecast of $1.5-1.65 billion, mainly due to problems in its transportation division.

The group expects to pour an additional $250-300 million into the division in order to wrap up a number of "late-stage, legacy projects" and protect the delivery schedule for other rail contracts.

In the quarter ending June 30, Bombardier suffered losses of US $36 million, or four cents a share, after logging a $70 million profit in the same quarter a year ago.

That loss far exceeded the expectations of analysts, who had counted on a loss of one cent per share.

Revenue was up one percent at more than $4.3 billion.

During the second quarter, Bombardier concluded the sale of its Q Series turboprop line to a Canadian investment fund and also said it would sell its CRJ Series regional jet program to Mitsubishi Heavy Industries for $550 million.

Both lines were seen as underperformers.

The group had already ceded a majority stake in its medium-range C Series jetliners to Airbus.

"We are very happy with our continued momentum in aerospace, where our transformation is progressing ahead of plan," Bombardier CEO Alain Bellemare said in a statement.

"We have successfully addressed our underperforming commercial aircraft programs and are now fully focused on business aviation," he added.