National & World News, Canada's Bombardier says it will cut 5,000 jobs

Postado Novembro 11, 2018

It also announced the sale of its aircraft's flight and technical training business to CAE, and the monetization of royalties for about US$800 million.

Bombardier workers in Northern Ireland and the Midlands face uncertainty after the Canadian company announced 5,000 job cuts globally on Thursday. About 2,000 other cuts will be overseas.

The company also said it was selling its Q400 turboprop program to a unit of Longview Aviation Capital for $300 million, confirming earlier reports, and its corporate aircraft training business to CAE Inc for $645 million.

Bombardier says it has "production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services".

"With our heavy investment cycle now completed, we continue to make solid progress executing our turnaround plan", Bombardier Inc. 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". "We understand that", he added, pledging continued support for the aerospace sector. 'And by and large, if you look at what we've done so far we positioned the company very well for the next phase'. President and CEO Alain Bellemare said in a statement. And the overhaul might not be over yet, with Bombardier saying it's exploring strategic options for its CRJ regional jet program.

Dropping the Q400 will allow Bombardier to zero in on producing its Global series of long-range business jets, including the Global 7500, whose first aircraft is slated for delivery next month.

Revenue in what was the company's third quarter totalled $3.64 billion, down from $3.84 billion a year ago.

For the full year, Bombardier expects revenues of approximately $16.5bn (£12.6bn).

Unable to recover the balance, the Canadian aircraft manufacturer made a decision to give up control (50.01 percent) of its subsidiary dedicated to the CSeries aircraft, now known as the A220, to the European Giant Airbus. That aircraft has since been renamed the Airbus A220. Most notably, the company sold control of its crown jewel, the CSeries jet program, to Airbus in a deal that closed on July 1.