By Emily Jackson, Financial Post; August 1, 2019
Bombardier Inc. shares nosedived after it lowered its financial forecasts for the second time this year due to persistent challenges in its rail division, a move that left analysts questioning the latest assurances from the plane and train manufacturer after a series of disappointments.
The Montreal-based company said Thursday it needs to invest an additional US$250 to $300 million in its train division in order to complete five major projects that have already been delayed significantly. As such, it expects to burn through $500 million in cash in 2019, at least twice as much than previously predicted when it lowered its guidance in April.