UPDATE 5-Bombardier to list rail unit; sees cuts in business jet output
* Bombardier expects IPO of rail unit in fourth quarter
* Q1 earnings ex items $0.09/shr vs est. $0.05/shr
* Faced weakness in business aircraft market in Q1 (Adds details from interview with CEO, closing stock price)
By Allison Lampert and Allison Martell
MONTREAL/TORONTO, May 7 (Reuters) - Bombardier Inc outlined plans on Thursday to list a minority stake in its rail unit as it reported a quarterly profit that topped market expectations but also warned it may cut production of its profitable Global business jets.
The company expects to launch an initial public offering of the rail division in the fourth quarter with the main listing likely to be in Germany, where the business is headquartered.
Reuters reported in April that Bombardier was looking to raise cash from the rail business, Bombardier Transportation, as it grappled with cost overruns in its aircraft business. It acquired a large chunk of the business through its purchase of Adtranz from DaimlerChrysler in 2001.
The company warned it may reduce production of its largest business jets, the Global 5000 and Global 6000, because of weak demand.
While earnings from business jets were steady in the first quarter, net orders dropped to 19 from 46 a year earlier. On a conference call, Chief Executive Alain Bellemare said the weakness was in the Global large-jet program. Continued...