May 7, 2020 / 10:03 AM / 3 months ago

Bombardier adjusted core profit falls as pandemic delays jet deliveries

May 7 (Reuters) - Bombardier Inc posted a 35.7% fall in adjusted core profit in the first quarter on Thursday as the Canadian plane and train maker was pounded by delayed deliveries of its business jets due to the COVID-19 pandemic.

Business jet deliveries are expected to fall this year as the pandemic keeps people under lockdown, disrupts global travel and slows down economic activity around the world.

The company said it expects business activity to hit a low point in the second quarter, before gradually recovering in the second half of the year.

“Bombardier has begun the gradual resumption of manufacturing operations at both Aviation and Transportation necessary to deliver on our strong rail backlog and to continue the production ramp-up of the Global 7500,” Chief Executive Eric Martel said in a statement.

Bombardier, which is expecting to be cash flow positive in 2020, reported negative free cash flow of $1.6 billion in the quarter ended March 31.

Adjusted earnings before interest, taxes, depreciation, and amortization fell to $171 million from $266 million a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D’Silva)

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