Bombardier Blames Loss on Airlines
Bombardier Inc. reported Wednesday a loss in the latest quarter and posted lower revenue as tough conditions continued in the aircraft industry.
The company said "there is no doubt the financial distress facing some of our airline customers had an impact on our results." It noted that four of its airline customers are under bankruptcy protection.
The Montreal-based maker of aircraft and trains said it lost $9 million, or 1 cent a share, on revenue of $3.34 billion in the fiscal third quarter ended Oct. 31.
Analysts were expecting earnings of 2 cents a share, according to Thomson Financial.
In the same period a year earlier, it earned $10 million, rounded to nothing per share, on revenue of $3.61 billion.
Items related to the restructuring of the company's rail segment lowered earnings by $25 million in the latest quarter and $51 million a year ago.
Bombardier said the restructuring of its rail division is progressing as planned, with work force reductions totaling 5,500 at the end of the quarter.
The company's order backlog fell to $30.7 billion on Oct. 31 from $31.5 billion on Jan. 31, mainly due to the weakening of the euro and the pound compared with the U.S. dollar.
Bombardier delivered 74 aircraft in the latest quarter, compared with 69 a year earlier.
General Electric said Wednesday that it will sell 38 million shares of life- and mortgage-insurer Genworth Financial Inc. as it exits the insurance business.
The offering, GE's third this year, will be priced at the close of trading today, the company said in a statement. The shares were valued at $1.29 billion based on Genworth's closing price Wednesday.
GE chief executive Jeffrey Immelt is divesting insurance businesses to focus on faster-growing areas, such as consumer finance and health care. The company raised a total of $4.96 billion in March and September through share sales of Genworth. The new sale will bring its holding to less than 20 percent from 27 percent, GE spokesman Russell Wilkerson said.
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