- Quebec jet maker takes $4.9 billion loss as CSeries drags
- Barrick, BlackBerry, Nortel also posted big losses since '07
Bombardier Inc.’s third-quarter slump is among the worst reported by a Canadian company since 2007, according to data compiled by Bloomberg.
The Montreal-based company lost $4.9 billion, the third-worst loss by a Canadian company since the third quarter of 2007, after writing down its CSeries jetliner, which has been plagued by delays and bleeding cash. The Quebec government will pay as much as $1.3 billion to help bail out the aerospace maker and take a 49.5 percent stake in the CSeries program.
“For a major Canadian company, this is right up there,” said David Cockfield, a fund manager at Northland Wealth Management in Toronto. His firm manages about C$325 million ($247 million), including some preferred shares of Bombardier. “It is a big number.”
Bombardier trails only Barrick Gold Corp., the world’s largest producer of the metal, which posted a $8.56 billion loss in the second quarter of 2013 and a $5.35 billion plunge in the third quarter of 2009.
Bombardier is the second-worst performing stock in the benchmark Standard & Poor’s/TSX Composite Index this year with a 67 percent retreat. Barrick has lost 17 percent in the same period. Bombardier shares fell 14 percent to C$1.38 at 3:15 p.m.
The declines by Bombardier and Barrick pale in comparison with a $19.4 billion plunge at Nortel Networks Corp. in July 2001, among the worst in corporate history at that time.