Shares of Bombardier Inc. (TSX: BBD.B) rose slightly higher in early trading on Thursday, following the announcement of its plan to sell its aerostructures business to Spirit AeroSystems Holding, Inc. and reporting its Q3 2019 loss.
Spirit is buying the division for $500 million (USD) in cash and assume liabilities with a total carrying value of more than $700 million. Spirit will continue to supply structural aircraft components and spare parts for Bombardier Aviation’s Learjet, Challenger and Global aircraft families.
Meanwhile, Bombardier reported a loss of $91 million (or six cents per diluted share) on $3.72 billion in revenue in its third quarter. This is compared with a profit of $149 million (or four cents per share) on $3.64 billion in revenue last year.
Shares were up around 8% following the market’s open.