AUS
NZ
UK
CA
USA
IND
Summary
- The news of successful COVID-19 vaccine trials saw Bombardier stocks balloon by almost 90 per cent in November.
- Bombardier stocks have trended on the TSX almost continuously this year through the coronavirus pandemic.
- Its business aircraft manufacturing revenues increased by a 20 per cent YoY to US$ 1.4 billion in the third quarter of 2020.
Bombardier Inc (TSX: BBD.B) has sustained an almost continuous trending status on the Toronto Stock Exchange (TSX) this year through the staggering coronavirus pandemic. The high-volume trading activities went on while Bombardier’s business, like many other companies around the world, struggled under the COVID-inflicted unusual circumstances. But just as the onset of the pandemic sent its stock price plummeting around March-April, the hope of a potential vaccine for the virus saw its value swell once again around early November.
So, has Bombardier recovered from its bad times in 2020? Let’s dive into its profile to understand its performance of this year better.
Bombardier Inc Stock Performance (TSX:BBD.B)
The COVID outbreak this left many strong companies on crutches in nine months’ time. While Bombardier can blame the pandemic for some of its struggles, it had carried forward troubles from the previous year, such as the debt from the botched CSeries deal.
With the onset of the pandemic, though, Bombardier’s stock price tumbled to record lows, hitting its level of C$ 0.405 on April 3. The shares dropped by almost 75 per cent year-to-date.
The news of successful COVID-19 vaccine trials saw Bombardier stocks balloon after a long period in November, spiking by almost 90 per cent in that month. In December to date, the scrips deflated by over nine per cent.
Despite its active status, Bombardier stocks remain highly volatile and unpredictable, swinging between periods of highs and lows.
Bombardier’s Latest Financials
The Montreal-based company saw a five per cent year-over-year (YoY) slump in its total revenue of US$ 3.5 billion in the third quarter of 2020 but scored a 20 per cent YoY increase in its business aircraft manufacturing revenues of US$ 1.4 billion.
The company has a staggering debt of over US$4.5 billion.
©Kalkine Group Image
Bombardier’s cost control measures saw US company Spirit AeroSystems Holding Inc (NYSE:SPR) buy off its aerostructure wing, while the deal of its transportation segment with French buyer Alstom SA is expected to close by 2021 first quarter. And once this deal is complete, Bombardier will become a manufacturer of business aircraft solely.
The company’s transportation wing -- Bombardier Transportation – recently signed a deal with TransLink and is reportedly set to manufacture 205 rail cars for Vancouver’s SkyTrain network.
Bombardier is no more the major manufacturing giant it used to be. While the company’s future remains shrouded in uncertainty, a lot depends on how the firm adapts to the future of mobility and manage its debt.
