NEWS
12/14/2016 20:13 EST | Updated 12/15/2017 00:12 EST

Bombardier issues strong guidance plan for 2017

MONTREAL — Bombardier Inc. (TSX:BBD.B) says its expects to achieve solid growth in 2017 thanks in large part to previously announced restructuring plans.

In its 2017 guidance released Wednesday, the The Montreal-based transportation giant said it expects earnings before interest and tax in the range of $530 million to $630 million, which represents a year-over-year improvement of about 50 per cent at the mid-point of the range.

The company said it also expects to spend $250 million-$300 million on restructuring to further improve efficiency and reduce costs.

Bombardier said its consolidated revenue in 2017 is expected to grow by low single digits, driven by growth in the rail business and the ramp up of the C Series aircraft program, and its cash flow usage to be in the range of $750 million to $1 billion.

"Our turnaround plan is in full motion and the early benefits can be seen in our 2016 results," said company president and CEO Alain Bellemare.

"We've set a strong foundation for growth, and our focus in 2017 will be on unleashing the value of our portfolio and creating shareholder value through solid execution."

Bombardier will further discuss its 2017 guidance on Thursday during its Investor Day in New York.

Prior to issuing its guidance, the company's shares dipped almost 1.5 per cent in Toronto to close at $1.91.