Montreal-based Bombardier also announced the sale of "non-core assets" of a total of $ 900 millionCanadian aircraft and transport companies…
Montreal-based Bombardier also announced the sale of “non-core assets” of a total of $ 900 million
Canadian aircraft and transport companies Bombardier will cut 5000 jobs globally and sell off its aging turboprops line in an effort to “streamline” the business, announced the fighting company on Thursday.
The reduction of seven percent of the workforce throughout the organization will occur over the next 1
2 to 18 months, while the major space technology members are redistributed to their business segments.
The cuts will be concentrated in the space industry and will affect 3,000 workers in Canada, spokesman Simon Letendre told AFP. Bombardier has had to slash more than 15,000 jobs in its space and railway departments around the world since 2015.
The Montreal-based group also announced the sale of “non-core assets” a total of about 900 million dollars, including the Q series turboprop aircraft and the De Havilland brand sold for about $ 300 million to a Canadian investment fund.
Flight simulator and training company CAE has agreed to download Bombardier’s commercial aircraft, which is expected to generate royalties of $ 800 million.
The restructuring announcement came when the company reported a net income of $ 167 million in the third quarter, compared with a loss of $ 11 million a year earlier.
“We continue to make solid progress implementing our plan for reconstruction,” said Bombardier’s chief Alain Bellemare about the restructuring work.
“Today’s announcements have triggered the next round of action required to free Bombardier’s portfolio’s full potential,” he said in a statement, adding that the company “will continue to be proactive to focus and streamline the organization.”  analyst in a conference call, Bellemare was positive about the company’s prospects.
“We are going through a major conversion,” he said. “And, in general, if you look at what we’ve done so far, we’ve placed the company very well for the next phase.”
Good news about profit
The decision to sell Q series was made “because we think there is a better owner than us to keep this program going.”
He said he hoped “to see more moves from suppliers to reduce costs” on his second regional flight, the CRJ CRJ series and Q400 deliveries for the quarter amounted to only five aircraft while the net process was 11.  The company’s new Global 7500 aircraft – the largest and longest range of business rays on the market – has now been certified Flight-worthy, which paves the way for its commissioning in December.
Excluding non-recurring items and individual items, Bombardier left quarterly earnings of four cents per share over consensus of analysts who expected a profit of two cents.
The strong profit came despite sales decline in the quarter by five percent from the same period a year ago to $ 3.6 billion.
Bombardier expects revenues of around $ 16.5 billion throughout the year, at the low part of its direction.
To make the difference, the Canadian aircraft manufacturer had decided to give up the control (50.01 percent) of its subsidiary dedicated to the CSeries aircraft, now known as A220, to European giant Airbus in exchange for using Airbus sales and marketing action to lift the CSeries sales. The transaction was completed in July.
The partnership also provided a way to avoid heavy duty imposed by the US Commerce Department as a result of a trade complaint from US competitor Boeing, by building CSeries aircraft for the US market on the Airbus Mobile, Alabama plant.
Bellemare was aboard 2015 to crush the company that was in serious financial problems with the CSeries program. The Quebec government had to save 2015 with an interest rate of $ 1 billion in exchange for a 16.44 share in CSeries, leaving Bombardier with 33.55 percent ownership.
CSeries, when officially launched in 2016, was the first new design in the 100 to 150 seat category in more than 25 years.
Airbus says the third quarter’s profit more than triple to 957 million euros