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Bombardier issues profit warning as business jet production slows

MONTREAL plane and train maker Bombardier said a cut in production of its Global 5000 and Global 6000 business jets will reduce revenue in 2016.

But it expects its liquidity position to be strong because of cash from Quebec government pension fund manager Caisse de depot et placement du Quebec as well as other provincial subsidies.



But the company said its 2016 earnings before interest and tax would also be hurt due to the CSeries passenger jet programme ramp-up.



Certification for the narrow-body, medium-range CSeries jets was "very close", but no new orders were imminent, Reuters reported.



Bombardier said last week it had finished flight testing of the aircraft due to enter service with Lufthansa subsidiary SWISS in the first half of 2016.



Bombardier's jet programme is already billions of dollars over budget and has left the company owing US$9 billion.



The provincial government agreed to inject $1 billion into the CSeries programme last month, while Caisse said last week that it would buy a 30 per cent stake in Bombardier's rail business for $1.5 billion.
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