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RCO





Joined: 02 Mar 2009
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Location: Ontario

PostPosted: Thu Nov 08, 2018 9:18 am    Post subject: Bombardier to sell off businesses and cut 5000 jobs Reply with quote

( so much for corporate welfare being a success in Canada , how much off our money have these guys been given ? yet they still cut 5000 jobs anyways )



Bombardier is selling off two businesses and cutting 5,000 jobs

Company to focus on transportation and business jet units



Bombardier Inc is selling off its turboprop program and another non-core division to focus on its transportation and business jet units.Canadian Press



Reuters

Nivedita Bhattacharjee and Allison Lampert


November 8, 2018
7:39 AM EST

Filed under
Transportation
〉 Airlines


Bombardier Inc said on Thursday it would sell two of its units for US$900 million and cut about 5,000 jobs, as the Canadian plane and train maker reins in costs and focuses on its core transportation and business jet units.

The moves come at a time when the company is working through a five-year restructuring program through 2020 aimed at growing revenue and profit. Earlier this year, Bombardier sold a majority stake in its money-losing CSeries to Europe’s Airbus, which has pledged to boost sales and cut costs of the plane that has been renamed the A220.

“With today’s announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio,” Chief Executive Officer Alain Bellemare said.


Montreal-based Bombardier said it will sell its turboprop program to a subsidiary of Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc.

It also announced sweeping changes to its business operations, which the company said were aimed at “optimizing production and management processes, flattening management structures and further reducing indirect costs.”


The company said it forecast 2019 revenue to grow by 10 per cent to US$18 billion or more, driven by a pickup in deliveries of its Global 7500 business jets.

For the quarter ended Sept. 30, Bombardier reported US$267 million in earnings before interest and taxation, compared with US$133 million in the same period a year earlier, which were restated due to accounting changes.

Net profit of US$149 million compared with a net loss of US$100 million last year when the company was making heavy investments in various segments including planes. Adjusted earnings per share of 4 cents beat estimates of 2 cents a share as per I/B/E/S data from Refinitiv.


https://business.financialpost.com/transportation/airlines/update-1-bombardier-ebit-more-than-doubles-to-sell-two-businesses


Last edited by RCO on Thu Nov 08, 2018 9:21 am; edited 1 time in total
RCO





Joined: 02 Mar 2009
Posts: 9175
Reputation: 300.7Reputation: 300.7
votes: 3
Location: Ontario

PostPosted: Thu Nov 08, 2018 9:19 am    Post subject: Reply with quote

( this article seems to indicate its 3000 jobs in Canada , 2500 in quebec and 500 in other provinces )



Bombardier cutting 5,000 jobs, selling Q Series aircraft


Montreal-based company said the measures will result in $250M in annual savings


CBC News · Posted: Nov 08, 2018 6:47 AM ET | Last Updated: 20 minutes ago


Bombardier, based in Montreal, is cutting 5,000 jobs, and has introduced other measures such as the sale of its Q Series turboprop aircraft program. (Ryan Remiorz/Canadian Press)


187 comments


Bombardier has announced measures that will result in 5,000 job losses, half of which will be in Quebec, over the next 12 to 18 months.

The Montreal-based company said Thursday morning the measures will result in $250 million in annual savings. It also announced it will sell its Q Series turboprop aircraft program to Longview Aviation Capital for $300 million.


The carrier reached another agreement to sell its business aircraft flight and technical training unit, which is run out of Montreal, Quebec City and Dallas, to another Montreal multinational, CAE.

Bombardier is also selling training services to CAE for $645 million. The transactions with CAE will total $800 million in revenue for Bombardier and are expected to be finalized by mid-2019.

Bombardier said the deals with Longview and CAE will amount to $900 million in net proceeds.

The company's third-quarter revenues reached $3.6 billion US, a 48 per cent increase compared to its earnings for the same period last year.

Bombardier CEO Alain Bellemare said the cuts and sales are necessary, and the company would continue to "streamline" its operations.

John Di Bert, Bombardier's chief financial officer, said in a conference call with investors Thursday morning that "the actions announced this morning demonstrate our focused efforts to grow earnings and cashflows."

"We continue taking concrete actions to reshape Bombardier's portfolio."

'Unfortunate and distressing': union

Bombardier spokesperson Simon Letendre confirmed another 500 jobs will be cut in the rest of Canada, on top of the 2,500 in Quebec. The company has 70,000 employees worldwide.

David Chartrand, Quebec co-ordinator for the International Association of Machinists and Aerospace Workers, said Thursday's announcement was "unfortunate and distressing," speaking to Radio-Canada's radio morning show host Alain Gravel on Thursday.

"The biggest frustration is that Bombardier has once again announced major cuts just before the holidays," said Chartrand.

He said he wants the company to give more details about which employees will be affected. About 20,000 people work for Bombardier in Quebec, he said.

"That's 20,000 employees with question marks in their mind."

Chartrand said the pattern of deals Bombardier has made over the past few years, including handing over its C Series airliner to Airbus and selling the Q400 facilities, indicates it may be shedding its commercial aircraft operations to focus on its business fleet.

"That is definitely one of the questions we will be asking the company."

Chartrand said he hopes the union can reach a deal with CAE that would be similar to the deal struck with Airbus: for the CAE to hire Bombardier employees and keep their seniority.

Quebec Economy Minister Pierre Fitzgibbon said the government will look into ways to help workers affected by the cuts, as well as, "if necessary," how it could support projects from other Quebec companies that could create jobs.


https://www.cbc.ca/news/canada/montreal/bombardier-cutting-5000-jobs-q-series-1.4896753
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Bombardier to sell off businesses and cut 5000 jobs

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