Bombardier collapses in the Stock Exchange after cutting annual estimates
Budget forecasts for the quarterly report marked a sharp reduction in revenues
After the release of the preliminary results for the first quarter of 2019, yesterday the Bombardier stock collapsed on the Stock Exchange, losing 18% of its value compared to the opening. The reason is due to the fact that the Canadian aerospace and transport company has cut expectations for the whole year, due to the expected revenues which are down 11% annually, which will turn into a 5% contraction compared to the same first quarter of 2018. An important false step for Bombardier which would be due to slower production, unfavorable currency exchange rates and a reduction in aircraft deliveries and orders, especially due to the Ethiopian Airlines Boeing B-737 MAX 8 accident which caused a worldwide downturn in requests for new aircraft.
If Bombardier's estimates were to be confirmed, these would cause a slowdown in the economic and financial recovery of the company that is preparing in 2020 to conclude the five-year plan launched by the management in 2015 to save it from bankruptcy.
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