Post says Bombardier wins analyst praisePost says Bombardier wins analyst praise
2008-09-05 09:19 ET - In the News
The Financial Post reports in its Friday edition that Bombardier's aerospace division got most of the glory for the company's better-than-expected third-quarter earnings Thursday. The Post's David Pett writes that according to new research at UBS, it is Bombardier Transportation that will likely drive strong shareholder value in the years to come. It says the Transportion unit will ride the rails of red-hot demand for train transportation across the globe. Bombardier swung to a second-quarter profit of $246-million, or 14 cents a share, compared with a loss of $71-million (five cents) this time last year. Analysts had expected 11 cents per share. Aerospace was applauded for the high level of new orders and deliveries, despite the present challenges in the airline industry, while Transportation got quieter praise. Shares in Bombardier closed at $7.81, down 59 cents despite the positive results, mainly on the basis of overall negative sentiment that has seen global markets plunge in recent days. In his report on rail transportation, UBS analyst Fadi Chamoun said Bombardier Transportation is at the "heart of a rail renaissance" being driven by higher fuel prices and industrialization in emerging markets.