The Successful Investor Hotline – Friday, July 31, 2015

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $1.75 and BBD.B $1.63, has denied media reports that it’s planning to merge its passenger-railcar business (Bombardier Transportation) with Germany-based Siemens AG. However, the company still plans to sell shares in Bombardier Transportation through an initial public offering later this year—though it will continue to own a majority stake. Bombardier will probably use the cash from this sale to pay down its $8.9-billion U.S. long-term debt, which is a high 315% of its $3.7-billion (Canadian) market cap. The company also said it would delay the launch of its new Global 7000 business jet for two years, to the second half of 2018. The company feels it needs the extra time to properly develop and test the plane. Meanwhile, if you exclude unusual items, Bombardier’s earnings fell 24.5% in the three months ended June 30, 2015, to $145 million from $192 million a year earlier (all amounts except share prices in U.S. dollars). Per-share profits fell 40.0%, to $0.06 from…