Bombardier consolidated aviation units, to divest from N. Ireland, Morocco
A woman seats at the Bombardier company booth on the first day of the China International Aviation and Aerospace Exhibition in Zhuhai, Guangzhou province, China, Nov. 6, 2018. EPA-EFE/FILE/ALEKSANDAR PLAVEVSKI
Montreal, Canada, May 2 (efe-epa).- Aircraft and railway train manufacturing company Bombardier Inc. said it would consolidate its aerospace assets into a single, streamlined aviation unit, as the company focuses on optimizing its global footprint, according to a Dow Jones Newswires report made available to EFE on Thursday.
The company said it would bring its leading brands, Global, Challenger, Learjet and the CRJ under one roof.
“We are very excited to announce the strategic formation of Bombardier Aviation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. in a statement. “It is the right next step in our transformation. The consolidation will simplify and better focus our organization on our leading brands, Global, Challenger, Learjet and the CRJ. It will also allow us to better support our customers and generate value for shareholders.”
Subsequently, Bombardier also plans to divest its Belfast and Morocco aero-structures business.
“As the Company moves to optimize its global manufacturing footprint, Bombardier will pursue the divestiture of the Belfast and Morocco aerostructures businesses. These are great businesses with tremendous capabilities,” the statement said.
The Montreal-based plane-and-train maker also posted a first-quarter profit of $239 million, or eight cents a share, up from $44 million, or one cent a share, in the year-earlier period.
Analysts surveyed by FactSet were expecting a loss of three cents a share.
Excluding special items, Bombardier reported a loss of seven cents a share for the quarter ended March 31, compared with a profit of one cent a share last year.
Analysts were expecting a loss of one cent a share, Dow Jones added in a report made available to EFE.
Sales fell 13 percent to $3.52 billion, while the group's order backlog now stands at $53.2 billion. Analysts estimated sales of $3.66 billion.
Last week, the company lowered its full-year guidance, citing issues with aircraft delivery timing and currency headwinds.
The company expects full-year revenue of $17 billion, compared with a previous target of $18 billion or more.
Bombardier said that while its aerospace businesses were on track, it lowered its targets mainly due to some ramp-up challenges in its transportation segment.
The company said it had more than 68,000 employees across four business segments, making Bombardier a global leader in the transportation industry making “innovative and game-changing planes and trains.”