Bombardier cutting 5,000 jobs

Gladys Abbott
November 11, 2018

The previous forecast excluded those funds.

Bombardier is targeting to achieve free cash flow generation in the range of $250 million to $500 million, which is anticipated to be offset by the $250 million restructuring charge mentioned above, as well as a $250 million contingency to reflect the working capital volatility as the Company progresses through its intense growth phase at Business Aircraft and Transportation. Ferguson said: "Transportation will generate nearly all of cash flow as aerospace. will be flat at best during 2018". Earlier this year, it sold a majority stake in its money-losing CSeries jet to Europe's Airbus.

About 2,500 Bombardier workers will be laid off in Quebec and 600 in Ontario. The drop threatened most of the stock gains since the deal with Airbus was announced a year ago. The remaining job cuts about 2,000 will be in operations outside Canada not year identified. A programme that had previously received a $1bn bailout from the Quebec Government.

Bombardier said the job cuts are part of "a new enterprise-wide productivity program to further streamline, lean out and simplify the Company".

"With the measures announced, we are confident that we will be able to reach our goals in 2020", chief executive Alain Bellemare's said of his plan to reduce debt.

Longview, whose subsidiary Viking Air Ltd. makes turboprop aircraft such as the Twin Otter, intends to maintain supply chains for the Q400 series that now stretch from China to Ireland to Mexico, he added.

The company sold its Q Series turboprop airliner business to Viking Air for $300 million and its business aircraft flight and technical training business to CAE for $645 million.

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Michael Mulholland, GMB regional organiser, said: "Bombardier jobs are crucial to Belfast's economy and GMB will fight tooth and nail to save them". The focus for now is on reducing cost and increasing volumes while optimizing aftermarket revenue for about 1,500 CRJs in service. Bombardier bought the company's Canadian unit, and the name, in 1992.

Speaking to analysts in a conference call, Bellemare was upbeat about the company's prospects.

With the aerospace investment effort complete, key engineering team members will be redeployed.

The Montreal-based manufacturer is counting on a 2019 sales boost after next month's expected debut of the Global 7500, its largest business aircraft.

The plane was rebuilt and de Havilland flew it successfully the following year.

Excluding one-off and one-time items, Bombardier posted a quarterly earnings of four cents a share, above the consensus of analysts who expected a gain of two cents. The company also announced the sale of its flight training business.

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