Bombardier fourth-quarter EBIT surges as costs fall

Reuters 

(Reuters) - Canadian plane and Inc reported an increase in a closely watched measure of earnings in the fourth quarter, led by a fall in costs and stronger sales.

The company said on Thursday its earnings before interest and taxation (EBIT) rose to $342 million in the three months ended Dec. 31, from $73 million a year earlier. Analysts on average had expected EBIT of $254.5 million, according to IBES data from Refinitiv.

Bombardier's net profit reached $55 million, compared with a $188 million net loss a year earlier when it made heavy investments in various businesses including planes.

The Montreal-based manufacturer is in the midst of a five-year turnaround aimed at cutting costs and boosting profitability, after years of investments in two aircraft programs that pushed it to the brink of bankruptcy in 2015.

(Reporting by in Bengaluru)

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First Published: Thu, February 14 2019. 16:48 IST