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Bombardier Inc.B (BDRBF)

  • Yesterday, 10:18 AM
    • Highlights: Bombardier ((OTCQX:BDRAF -0.6%), (OTCQX:BDRBF -0.4%)) said lower production of its business jets - Global 5000 and 6000 - will drive down revenue next year.
    • Predicted a drop in 2016 earnings as it confronts lower output of its current business jets and costs from the CSeries airliner.
    • Targets a CSeries fleet of more than 250 aircraft by 2020 as it hopes to generate company-wide sales of more than $25B and margins of as much as 8%.
    • Hopes to deliver 30-35 CSeries jets in 2017 and as many as 55 the year after, rising to a range of 90-120 in 2020.
    • Check out the presentation here
    • Previously: Bombardier holds investor day (Nov. 24 2015)
    | Yesterday, 10:18 AM | Comment!
  • Yesterday, 4:46 AM
    • While a $1.5B cash infusion from Quebec's public pension fund last week stabilized the financial situation at Bombardier (OTCQX:BDRAF, OTCQX:BDRBF), the Canadian plane and train maker will still have much to explain at an investor day in New York today.
    • The new cash came on top of $1B from the Quebec government to move up from business and regional jets to compete directly with Boeing and Airbus in the airliner market.
    • Investors will also be looking for signs that Bombardier can find a substantial number of buyers for its overdue and over budget CSeries jets.
    • Previously: Bombardier soars on pension fund investment (Nov. 19 2015)
    • Previously: Bombardier reports loss, confirms Quebec investment (Oct. 29 2015)
    | Yesterday, 4:46 AM | Comment!
  • Fri, Nov. 20, 1:06 PM
    • Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) says none of its executives will attend Monday’s Toronto Transit Commission board meeting, despite the board’s request that the company’s CEO appear in person to explain persistent streetcar production delays, although it would be willing to meet with board members privately.
    • The commission is fed up with Bombardier’s performance on the $1.2B contract, which should have seen at least 67 new streetcars on Toronto’s streets by now, according to the Financial Post; instead, Bombardier has said it will only have 16 in service by year-end.
    • The TTC also is pursuing legal action against the company for damages related to the delays.
    | Fri, Nov. 20, 1:06 PM | 5 Comments
  • Thu, Nov. 19, 10:13 AM
    | Thu, Nov. 19, 10:13 AM | Comment!
  • Thu, Nov. 19, 7:30 AM
    • Quebec's provincial pension fund has agreed to buy a 30% stake in Bombardier's (OTCQX:BDRAF, OTCQX:BDRBF) rail business for $1.5B.
    • Caisse de Depot & Placement du Quebec will acquire the convertible shares through a new holding company that the train and plane producer is creating out of its Bombardier Transportation division.
    • The transaction, which values the unit at $5B, suggests that Bombardier has scrapped its plan to list its rail unit at least for now.
    | Thu, Nov. 19, 7:30 AM | Comment!
  • Wed, Nov. 18, 4:19 PM
    • Canada is continuing to look into the idea of getting further aid to struggling Bombardier (OTCQX:BDRAF), with the focus on the risk involved, says the minister responsible.
    • Navdeep Bains, Canada's new innovation minister, said he had spoken with Bombardier CEO Alain Bellemare and would ensure that any aid provided was "good value for taxpayers."
    • He didn't say how much Bombardier is seeking: "I don't want to negotiate in public but there's no doubt they definitely made a request."
    • Late last month, Quebec agreed to infuse $1B cash into the firm's CSeries jet program, now billions of dollars over budget. Bains said he would ensure any help would comply with international trade law; Canada and Brazil fought a bitter battle in the '90s over accusation of subsidies for Bombardier and Embraer.
    • Previously: Bombardier in talks with new Canadian government on CSeries investment (Nov. 17 2015)
    • Previously: More aid for Bombardier? (Nov. 06 2015)
    • Previously: Bombardier could need a second bailout within 12-18 months, analyst says (Nov. 02 2015)
    | Wed, Nov. 18, 4:19 PM | 4 Comments
  • Tue, Nov. 17, 4:36 PM
    • Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) says it has agreed to sell 20 of its Challenger 350 business jets to Flexjet, in a deal valued at ~US$544M at list prices.
    • The provisional order comes as a huge boost for Bombardier, which in recent months has seen its order book affected by struggles with its CSeries line of passenger jets, as well as delays and problems with its new business jets.
    | Tue, Nov. 17, 4:36 PM | 1 Comment
  • Tue, Nov. 17, 2:59 PM
    • Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) is in talks with the new Canadian government about a further cash infusion into its struggling CSeries jet program, CEO Alain Bellemare tells Reuters.
    • The long-delayed program, which the CEO now expects to turn a profit by ~2020, is billions of dollars over budget and has left the plane maker saddled with more than US$9B in debt.
    • The financing talks come after the Quebec government said last month it would invest US$1B in the CSeries program in return for a near 50% stake in the project.
    | Tue, Nov. 17, 2:59 PM | Comment!
  • Mon, Nov. 16, 8:06 AM
    • According to a forecast by Honeywell, sales of business jets are expected to slow next year, falling by less than 10%, as weakening economies and simmering political tensions delay corporate purchases.
    • Honeywell also trimmed its 10-year outlook, saying the global market will need 9,200 business jets worth $270B over the next decade, down from the 9,450 jets worth $280B it forecast last year.
    | Mon, Nov. 16, 8:06 AM | Comment!
  • Fri, Nov. 6, 7:42 AM
    • Canadian Prime Minister Justin Trudeau said Thursday he was not shutting the door on the idea of government aid for Bombardier (OTCQX:BDRAF, OTCQX:BDRBF), but would wait for a recommendation from Innovation Minister Navdeep Bains, who has responsibility for the file.
    • "It's the minister who will examine will be done based on the interests of Canada, Canadians and our economy, not based on political interests," he added.
    • Last week, Quebec said it would invest $1B in the CSeries in return for a near 50% stake in the project. It now wants Ottawa to help the firm as well.
    • Previously: Bombardier could need a second bailout within 12-18 months, analyst says (Nov. 02 2015)
    • Previously: Bombardier reports loss, confirms Quebec investment (Oct. 29 2015)
    | Fri, Nov. 6, 7:42 AM | 2 Comments
  • Wed, Nov. 4, 9:16 AM
    • Despite several obstacles, Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) is confident its all new Global 7000 business jet will meet the target for entering service in the second half of 2018, said David Coleal, the head of the company's business aircraft unit.
    • In July, Bombardier pushed back its timeline on the jet that was expected to go into service in 2016, to the second half of 2018.
    | Wed, Nov. 4, 9:16 AM | Comment!
  • Mon, Nov. 2, 7:20 PM
    • Despite a $1B cash infusion from the Quebec government, Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) is still walking a liquidity "tightrope" and may need a second bailout within 12-18 months, Scotiabank says.
    • While last week’s government investment looked positive for Bombardier, the picture changed after the company disclosed it will cover only half of the CSeries cash drain expected over the next five years, analyst Turan Quettawala says, adding that he expects the CSeries will barely generate enough cash flow to cover the program’s US$5.5B of debt.
    • Bombardier’s US$3.2B writedown of the CSeries program "corroborates our long-held view that the CSeries is not going to be value accretive under any scenario,” according to Quettawala.
    | Mon, Nov. 2, 7:20 PM | 2 Comments
  • Thu, Oct. 29, 7:33 AM
    • The Quebec government is set to invest $1B in Bombardier's (OTCQX:BDRAF, OTCQX:BDRBF) struggling CSeries. The investment will take place through a 49.5% stake in a limited partnership set up to complete the program.
    • The news comes after the embattled planemaker reported a third-quarter loss of $4.6B or $2.20 a share, compared with net income of $74M or $0.03 a share, a year earlier.
    • The loss was largely tied to impairment charges on the CSeries and its Learjet 85 program that is being permanently mothballed.
    • Previously: Reuters: Bombardier to get funding from Quebec; book writedowns (Oct. 28 2015)
    | Thu, Oct. 29, 7:33 AM | Comment!
  • Wed, Oct. 28, 1:03 PM
    • Bombardier (OTCQX:BDRAF +12.6%, OTCQX:BDRBF +14.5%) is set to book a writedown on its CSeries program and announce that the government of Quebec will be investing in the narrowbody jet through a joint-venture, Reuters reports.
    • Should a deal be reached, Quebec would be on the hook to fund half the final development costs of the new plane, which is slated to enter service next year.
    • Embattled Bombardier is also poised to permanently mothball its Learjet 85 program, totaling a writedown of over $4B between the two programs.
    | Wed, Oct. 28, 1:03 PM | 6 Comments
  • Wed, Oct. 21, 10:51 AM
    • Bombardier Transportation ((OTCQX:BDRAF +0.8%), (OTCQX:BDRBF +1.6%)) has signed a contract to provide 62 TRAXX AC locomotives to Israel Railways, with an option to buy 32 additional locomotives.
    • Based on the list prices, the new order is valued at approximately €230M ($262M)
    | Wed, Oct. 21, 10:51 AM | Comment!
  • Fri, Oct. 16, 6:10 PM
    • Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) says it still plans to file for an IPO during Q4 to sell a minority stake of its rail unit depending on market conditions, Dow Jones reports.
    • The comments follow a Reuters report that the company had delayed its IPO plans until Q2 2016, and that the sale of a minority stake to a single entity or consortium had emerged as a more viable option.
    • Bombardier also reportedly continues to look for opportunities to “participate in industry consolidation” in both the train and plane making businesses, without offering specifics.
    | Fri, Oct. 16, 6:10 PM | Comment!
Company Description
Bombardier is a world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services.