Bombardier to cut 5,000 jobs

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

Bombardier said that 3,000 of the job cuts will happen in Canada over the next 18 months and will save the company $250 million US a year in salary and benefit expenses.

The company said the jobs will be eliminated over the next 12 to 18 months and save the company about $250 million a year by 2021.

The sale is expected to be announced with Bombardier's earnings on Thursday, the person said, asking not to be identified because of the sensitivity of the matter.

Bellemare said at the time the company was committed to the Q400 and CRJ.

The Montreal-based company manufactures roughly 28 to 30 Q400 aircraft annually at its Downsview property in Toronto, land that the company sold earlier this year to the Public Sector Pension Investment Board. In total sales to CAE are $800 million and are expected to be finalized by the middle of next year.

Bombardier said it would try to turn its money-losing regional jet program around by slashing costs, and boosting volumes, but would also explore strategic options for the program. In a conference call with investors this morning, John Di Bert, the chief financial officer of Bombardier said that the announced actions were created to show that the company's focus was on efforts to grow earning and cashflows saying: "We continue taking concrete actions to reshape Bombardier's portfolio". The ATO will focus on systems design and engineering, including applying experience from Bombardier's aerospace programmes to its rail transportation business.

The company said it reached definitive agreements for the sale of non-core assets and the monetization of royalties, which is expected to generate approximately $900 million in net proceeds, increasing financial flexibility as it approaches the final deleveraging phase of its turnaround plan.

Curtis says the deal, which is slated to close in the second half of 2019, positions Longview to more than triple its annual revenue to $1 billion.

In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg.

CAE president Marc Parent said in a statement its purchase of Bombardier's flight training wing "represents a win-win for both companies, resulting in enhanced core focus".

In the third quarter, the commercial aircraft business recorded a loss of US$9 million before interest, taxes and special items.

Related:

Comments


Other news