UPDATE 4-Bombardier says lower jet production to hurt revenue in 2016
* Expects liquidity position to be strong in 2016
* EBIT will be hurt in 2016
* Sees $25 bln rev by 2020 (Adds quotes from Bombardier executives, asset manager)
By Allison Lampert and Allison Martell
MONTREAL/NEW YORK Nov 24 (Reuters) - Canada's Bombardier Inc warned on Tuesday a previously announced business jet production cut will drive down revenue in 2016, but said its long-delayed CSeries program will help sales at the plane and train maker top $25 billion by 2020.
The Montreal-based company, which posted revenue of $20.1 billion last year, said it will have improved liquidity next year because of cash from Quebec's public pension fund and the provincial government, even as its 2016 earnings before interest and tax (EBIT) take a hit from CSeries ramp-up costs.
But Bombardier sees EBIT margins rising back into the 7 to 8 percent range by 2020 and said it plans to start reducing debt starting in 2019 and 2020.
"This is a long-cycle business," chief executive Alain Bellemare told analysts and shareholders at the company's investor day in New York. "Today we might look a bit challenged, but we're turning this around."
Bombardier stock, which has lost 70 percent of its value this year as of Monday's close, dropped about 2 percent in Toronto trading on Tuesday afternoon, as investors questioned Bellemare's plan. Continued...