UPDATE 4-Bombardier posts loss, says business jet demand weak; stock down

Fri Aug 5, 2016 12:35pm EDT
 
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* Quarterly loss bigger than expected

* CEO says significant softness in business jet market

* CEO says talks with federal government ongoing (Adds analyst comment)

By Allison Lampert

MONTREAL, Aug 5 (Reuters) - Canadian plane and train maker Bombardier Inc on Friday reported a bigger-than-expected quarterly loss as it delivered fewer business jets and warned of weakness in the market for smaller corporate planes.

The results showed Montreal-headquartered Bombardier faces pressure in its higher-margin business jet segment because of a downturn in global demand, even as it works to win customers for its new CSeries program of narrow body aircraft.

"Business jet weakness is a source of concern to us and has the potential to materially slow down the pace of restructuring progress if it worsens," said an analyst following the company who asked not be identified.

Bombardier shares dropped 1.26 percent to C$1.97 in Toronto.

Business jets revenue declined nearly 19 percent in the second quarter. The sector, a key source of cash flow, accounted for more than a third of total revenue.   Continued...