Bombardier Ascending On Turnaround That Includes Plans For Alabama Plant

By Frederic Tomesco

Bombardier Inc. climbed after the highest cash flow in seven years bolstered prospects for the company’s turnaround plan.

Free cash flow increased 76 percent to $872 million in the fourth quarter, Canada’s biggest aerospace company said Thursday as it reported earnings. That exceeded analysts’ expectations for the closely watched figure.

The improving results underscore progress under Chief Executive Officer Alain Bellemare after two aircraft-development programs left Bombardier awash in debt. Having shored up liquidity, cut thousands of jobs and agreed to team with Airbus SE on the C Series jetliner, Bellemare now is working to push the company’s next big revenue generator — the Global 7000 business jet — into service late this year.The earnings report was “well ahead of expectations across all segments,” Fadi Chamoun, a BMO Capital Markets analyst, said in a note to clients. “We sense there is greater demand momentum in business aviation and opportunities for growth beyond what is currently reflected in our forecast.”

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