Yesterday, 4:39 PM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) appoints Jim Vounassis as VP of operations strategy, a new post that will focus on improving efficiency and cutting costs as it looks to boost efficiencies and increase profits.
- The appointment is another signal that new CEO Alain Bellemare is determined to find the root causes of the performance problems that have plagued Bombardier as it struggles to bring the overdue and over-budget CSeries jetliner to market, Financial Post reports.
- Vounassis, who worked for nine years at CSeries engine supplier Pratt & Whitney after holding executive positions at Baker Hughes and Kraft Canada, will step into the role on June 15.
Fri, May 22, 10:54 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) says it is considering a third model of its new CSeries jetliner that could compete with the core single-aisle jet offerings from its European and American rivals.
- Bombardier’s current CSeries jets compete with the smallest models from Boeing (NYSE:BA) and Airbus (OTCPK:EADSF, OTCPK:EADSY), but the company has struggled with slow sales, delays and high costs for developing those models; a potential third model, the CS500, would compete with larger versions of coming updated models of Boeing’s 737 and Airbus’s A320 that have sold by the thousands since 2010.
- The new president of Bombardier’s commercial aircraft division says the company needs to finish testing the first two models to determine if there is an opportunity for a CS500 that might use the same wings, for example, a major cost savings.
Tue, May 19, 7:45 AM| 1 Comment
Thu, May 14, 8:01 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) said it will cut 1,750 workers in its Global 5000 and Global 6000 business jet program as it brings production in line with weakening demand.
- ~4,500 people work on the programs at Bombardier facilities in Toronto, Montreal and Belfast, Northern Ireland.
- "We have seen an industry-wide softness in demand recently in certain international markets and are taking steps to adjust our production accordingly," says Eric Martel, president of Bombardier Business Aircraft.
- The company does not specify how much the production line will slow.
Tue, May 12, 9:42 AM
- Bombardier ((OTCPK:BDRAF), (OTCQX:BDRBF)) is teaming up with Pratt & Whitney (UTX -1.1%) to develop a data management service for its CSeries aircraft.
- The Aircraft Health Management System will facilitate remote troubleshooting and transmit real-time and recorded data from the aircraft.
- Pratt & Whitney's eFAST system will be the infrastructure unit used to perform the data transmissions.
Thu, May 7, 8:46 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) says it is planning an IPO of a minority stake in its transportation unit.
- The company says it expects the IPO of Bombardier Transportation to take place in Q4 of this year, with the primary listing venue likely to be Germany, where the business segment is based.
- Bombardier also says Lufthansa's (OTCPK:DLAKF, OTCQX:DLAKY) Swiss International Air Lines will be its first customer to take delivery and operate the CS100 aircraft.
- The announcements came as the company reported Q1 net income fell to $100M from $115M a year earlier on flat revenue of $4.4B, partly dragged down by its weaker aircraft business.
Wed, May 6, 10:24 AM
Mon, May 4, 7:06 AM| Comment!
Wed, Apr. 29, 8:48 AM
- China's top two trainmakers, CSR (OTCPK:CSRGY) and CNR, are in discussions with Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) about purchasing a controlling stake in its railway unit, Reuters reports.
- Any deal to buy the Canadian company's train business would take place after CNR and CSR complete their planned $26B merger next month, the sources added.
Wed, Apr. 15, 5:48 PM
- Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) has hired UBS and Citigroup to advise on a potential IPO or sale of its rail unit, which could be valued at ~$5B in a sale, Bloomberg reports.
- Splitting off the rail unit would allow management to focus on turning around the aerospace unit, which posted a 2014 loss of $995M; the rail unit - whose products include locomotives, subway cars and signaling and control equipment - is the healthier part of the company, with 2014 earnings of $429M.
- GE and Alstom (OTCPK:ALSMY, OTCPK:AOMFF) are speculated to have interest in the rail unit.
Fri, Apr. 10, 10:41 AM
- Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) is exploring ways to raise money from its transportation unit, potentially worth up to $5B, as it struggles with huge cost overruns in its aircraft business, Reuters reports.
- Options could include a possible sale of all or part of the business - which provides rail vehicles, signaling and control equipment - as well as an IPO to retain Bombardier's exposure to the healthier half of the business.
- A merger with another sector peer such as Siemens (OTCPK:SIEGY) or Alstom (OTCPK:ALSMY, OTCPK:AOMFF) also could be considered, according to the report.
- Discussions are said to be in the early stages.
Thu, Apr. 9, 10:30 AM
- Bombardier’s (OTCQX:BDRBF, OTCPK:BDRAF) third-biggest CSeries customer says it is rethinking its order, blaming mounting delays and the lack of financing available for Russian companies.
- The news that Moscow-based Ilyushin Finance Co. is re-evaluating its CSeries order comes less than two weeks after Bombardier CEO Alain Bellemare said the aircraft would not begin commercial flights until 2016, three years later than originally planned.
- Separately, Bombardier says it named Fred Cromer as president of its commercial aircraft division to succeed Mike Arcamone, who is leaving to pursue other interests, and says Pierre Alary will retire as CFO but stay on the job until an international search for his successor has been completed.
Fri, Mar. 27, 3:43 PM
- Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) says it does not expect its CSeries aircraft to begin carrying commercial passengers until early 2016, pushed back from H2 2015, in another setback for the jetliner program.
- New CEO Alain Bellemare says the CSeries will be certified in 2015 but will not be delivered until next year, three years later than originally planned; the plane, which Bombardier launched to compete in the 100-seat-plus category long dominated by Boeing (NYSE:BA) and Airbus (OTCPK:EADSF, OTCPK:EADSY), has run into a series of technical glitches and other setbacks, and program costs have surged to $5.4B from an original estimate of $3.4B.
- Crossing into 2016 also means Bombardier would record the jet’s first revenue and delivery cash flow in its new fiscal year.
Fri, Mar. 20, 6:13 PM
- With shares down 40% in the past year and debt more than twice its market value, struggling Bombardier (OTCQX:BDRBF) needs to sell some of its businesses and find a focus fast, analysts say.
- New CEO Alain Bellemare said this week he is leaving all options open, which has some analysts predicting asset sales that could range from the Learjet division for as much as $750M to a stake in the rail business, which had 2014 revenue of more than $9B.
- Selling off pieces could reassure investors that Bombardier can handle rising interest payments and make a start in cleaning up its debt, analysts say.
- Bombardier’s controlling family would need to back any such plans and may not feel the need to consider a breakup right now, but analysts tell Bloomberg that Textron (NYSE:TXT) and Embraer (NYSE:ERJ) may be drawn to Learjet, while Alstom (OTCPK:ALSMY) could be a potential suitor if Bombardier offers a stake in its rail unit.
Fri, Mar. 20, 9:22 AM
- Deutsche Bahn and Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) have agreed on an out-of-court settlement regarding various vehicle projects, settling their long-standing legal disputes.
- The types of trains covered under the settlement include Berlin S-Bahn vehicles, Regional and Commuter trains in Bavaria, North Rhine-Westphalia and Baden-Wurttemberg and the Talent 2.
Thu, Mar. 19, 8:06 AM| Comment!
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