Bombardier to cut 5,000 jobs, sell units; share dive on cash flow worries
Photo: economictimes.indiatimes.com

Bombardier to cut 5,000 jobs, sell units; share dive on cash flow worries

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By Allison Lampert and Nivedita Bhattacharjee (Reuters) - Bombardier Inc said on Thursday it would sell two businesses for around $900 million and cut 5,000 jobs and as it expands its stronger corporate jet and rail divisions, but the company's shares fell as much as 26 percent on a disappointing free cash flow forecast. The Canadian plane and train maker said it would only be able to meet its 2018 free cash flow estimate by using $635 million in proceeds from the sale of a Toronto plant earlier this year.

Analysts had expected Montreal-based Bombardier to achieve its target of roughly breaking even on cash without relying on those proceeds.

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