The Canadian plane and train maker Bombardier on Thursday reported lower-than-expected revenue, hurt by weak demand in its rail and business aircraft units.
The company said revenue in the business aircraft division, which makes the Learjet, Global and Challenger business jets, fell 20.9 percent to US$1.65 billion in the fourth quarter.
Bombardier delivered 163 business jets in 2016, down 36 from a year earlier.
Revenue in the transportation business - the train-making division - fell 10 percent to $1.95bn in the quarter. The company’s order intake in the business fell 3.4 percent to $8.5bn in 2016.
Bombardier, which has struggled in recent years with cost overruns in its CSeries commercial jet programme, said it delivered 86 commercial aircraft in 2016, compared with 76 in 2015.
The Canadian government agreed last week to provide aid for Bombardier’s CSeries jet and the Global 7000 business jet programmes.
Net loss attributable to Bombardier shareholders narrowed to $251m, or 12 cents per share, in the fourth quarter ended Dec. 31, from $679m, or 31 cents per share, a year earlier. Excluding items, the company lost 7 cents per share.
Bombardier took charges of $30m in the latest quarter compared with $673m in the prior-year quarter.
The Montreal-headquartered Bombardier, which is in the middle of a five-year turnaround plan to improve results, reported a 12.7 per cent fall in revenue to $4.38bn.
Analysts on average had estimated a 3 cent loss on revenue of $4.64bn, according to Reuters.
* Reuters
