A Bombardier-built double-decker train in Zurich, Switzerland. Picture: REUTERS/ARND WIEGMANN
The maker of business jets and trains recorded a $435m charge in its rail business during the second quarter, mainly related to costs for several late-stage projects in the UK and Germany. Corporate aeroplane makers are reporting an uptick in interest as demand for private flights improves, though this has not yet translated into aircraft orders, Bombardier CEO Eric Martel told analysts.
Bombardier said it used free cash of about $1.04bn in the quarter ended June 30, up from $429m a year earlier, but better than analysts' expectation of $1.47bn. CFO John Di Bert says the company still aims to break even on free cash flow in 2020, “assuming operations continue to stabilise”.