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Bombardier Inc
Symbol BBD
Shares Issued 1,443,802,535
Close 2014-09-16 C$ 3.67
Market Cap C$ 5,298,755,303
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Globe/wire say more delay seen for Bombardier CSeries

2014-09-17 09:26 ET - In the News

The Globe and Mail reports in its Wednesday edition Bombardier may not get its CSeries jet in service by the second half of 2015, according to nine analysts, investors and consultants tracking the program. A Bloomberg dispatch to The Globe says initial delivery of the planemaker's biggest-ever model will probably be postponed for a third time, pushing the commercial debut to 2016. Another delay would heighten the threat of a liquidity crunch, according to bond researcher Gimme Credit, because Bombardier has $750-million in U.S. dollar-denominated debt due in January, 2016. Shipping aircraft on schedule is crucial because buyers usually pay most of the purchase price at delivery. "There's a risk that the ramp-up may be slower in coming than the company was anticipating, which would affect cash flow," said Evan Mann, a Gimme Credit analyst who has an underperform rating on Bombardier's bonds. "If that happens, it seems more likely to me they may need to raise more money." Richard Aboulafia at Teal Group told Bloomberg: "They're being borderline delusional if they think they're going to meet the 2015 target. That's not going to happen. If it's the first half of 2016, I will call that a strategic victory."

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