(Reuters) – Bombardier Inc is selling off its turboprop program and another non-core division to focus on its transportation and business jet units, the Canadian plane and train maker said on Thursday as it reported a key profit measure that beat analysts’ estimates.
Montreal-based Bombardier said it expects around $900 million in net proceeds from the sale of the turboprop program to Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc.
Bombardier is in the middle of a five-year turnaround plan through 2020, after spiraling investments in its CSeries jetliner led to a cash crunch in 2015. Earlier this year, the company sold a majority stake in its money-losing CSeries to Europe’s Airbus, which has pledged to boost sales and cut costs of the plane that has been renamed the A220.
The company said it forecast 2019 revenue to grow by 10 percent to $18 billion or more, driven by better deliveries of its Global 7500 business jet.
For the quarter ended Sept. 30, the company reported $267 million in earnings before interest and taxation, compared with $133 million in the same period a year earlier, which were restated due to accounting changes.
Analysts on average were expecting EBIT to be $245.90 million, according to I/B/E/S data from Refinitiv.
Net profit of $149 million, compared with a net loss of $100 million last year when the company was making heavy investments in various segments including planes.
Reporting by Nivedita Bhattacharjee and Allison Lampert; Editing by Saumyadeb Chakrabarty