New orders lift Bombardier’s outlook

Article Excerpt

BOMBARDIER INC. (Toronto symbols BBD.A $2.40 and BBD.B $2.34; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $4.1 billion; Price-to-sales ratio: 0.3; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) is the world’s third-largest maker of commercial aircraft, after Boeing (No.1) and Airbus (No. 2). It’s also a leading maker of commuter trains. The company recently announced that India-based SpiceJet Airlines has agreed to buy 25 of its Q400 turboprop aircraft. If that client exercises its option for an additional 25 planes, the entire order would be worth $1.7 billion U.S. Bombardier has yet to announce delivery dates for those planes. The company has also won a multi-year contract to build and maintain 750 passenger rail cars for the public transit operator in the southwest region of the U.K. That deal is worth $1.1 billion U.S. Bombardier will deliver those trains from mid-2019 to the end of 2020. Bombardier Inc. is still a hold. hold…