Deals
Bombardier Sinks Most Since 2015 as Hopes Dim for Turnaround
- CEO says rail unit’s capital needs are pressuring cash flow
- Company to slash payroll 7% and sell turboprop, training units
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Bombardier Inc. tumbled the most in more than three years as disappointing cash-flow forecasts sowed doubts about Chief Executive Officer Alain Bellemare’s turnaround of the debt-laden maker of trains and aircraft.
The company will only be able to attain its target of breaking even on a cash-flow basis this year by including the proceeds from a $635 million land sale in Toronto. Next year’s outlook for breaking even, plus or minus $250 million, frustrates expectations for a significant improvement, said Nick Heymann, an analyst at William Blair in New York.