Bombardier beats earnings forecasts as jet sales rise, costs fall

(Reuters) - Canada's Bombardier Inc topped analysts' forecasts for quarterly earnings on Thursday, led by a fall in costs and stronger sales at its business jets and aircraft design and maintenance unit.

The plane and train manufacturer, in the midst of a five-year turnaround, is banking on its Global 7500 business jets to boost revenue and profitability by 2020. Bombardier had faced a cash crunch in 2015 after investing heavily to bring two new planes to market.

Results for the three months ended Dec. 31 showed revenue at the Montreal-based company's business aircraft unit climbed more than 3 percent to $1.5 billion.

 

Earnings before interest and taxation (EBIT), a closely watched measure of Bombardier's earnings, also beat analysts' estimates.

EBIT rose to $342 million in the December quarter, from $73 million a year earlier and above analysts' average expectation of $254.5 million, according to IBES data from Refinitiv.

The company also said that Caisse de depot et placement du Quebec, Canada's second-largest pension fund, will increase its minority stake in Bombardier's transportation unit by 2.5 percent to 30 percent.

Bombardier's quarterly net profit reached $55 million, compared with a $188 million net loss a year earlier when it made heavy investments. Excluding one-time items, the company earned 5 cents per share, beating analysts' estimates of 2 cents.

(Reporting by John Benny in Bengaluru; Editing by Sai Sachin Ravikumar)