Canada's Bombardier profit drops on lower transportation demand

FILE PHOTO: Bombardier’s logo is seen on the building of the company’s service centre at Biggin Hill, Britain March 5, 2018. REUTERS/Peter Nicholls

(Reuters) – Plane and train maker Bombardier Inc BBDb.TO posted a 31% fall in third-quarter profit on Thursday, hurt by weak performance of its transportation unit due to COVID-19-driven disruptions.

The Montreal-based company, which is in the process of closing a deal to sell its rail division to French train maker Alstom SA ALSO.PA, said revenue at its transportation unit fell 2.5%.

Business jet deliveries were also lower in the quarter, falling to 24 units from 31 a year earlier.

Bombardier, which aims to break even on free cash flow in 2020, reported quarterly free cash flow of $706 million.

The company reported adjusted earnings before interest, taxes, depreciation and amortization of $176 million for the quarter ended Sept. 30, compared with $255 million a year earlier.

Revenue fell to $3.53 billion from $3.72 billion.

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