50 SKY SHADES - World aviation news

Bombardier confirms progress on turnaround plan

Download: Printable PDF Date: 23 Oct 2016 04:10 category:
Publisher:
Bombardier confirms progress on turnaround plan - Manufacturer publisher
Tatjana Obrazcova
Country: Canada Aircraft: Airplanes

Bombardier announced a series of actions as it continues to execute its five-year turnaround plan launched last year. The actions support the company’s efforts to build its earnings growth potential and highlight its focus on improving productivity, reducing costs and optimizing its worldwide footprint to deliver increased value to customers and shareholders.

“After successfully de-risking our business last year, our focus has shifted to building a clear path to profitable earnings growth and cash generation. The actions announced today will ensure we have the right cost structure, workforce and organization to compete and win in the future,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are confident in our strategy, our leadership team and our ability to achieve both our 2016 goals and our 2020 turn-around plan objectives.”

Specific actions to be taken by the company include streamlining its administrative and non-production functions across the organization and leveraging its worldwide footprint to create centres of excellence for design, engineering and manufacturing activities in both its aerospace and rail businesses.

Approximately 7,500 positions will be impacted as the company executes its workforce optimization and site specialization actions through 2018. The impact of these restructuring actions on overall employment will be partially offset by strategic hiring to support the ramp-up for key growth programs, including the C Series and Global 7000, as well as to support major rail contract wins.

As a result of the actions announced today, the company expects to achieve recurring savings of approximately $300 million by the end of 2018. The company anticipates recording $225 million to $275 million in restructuring charges that will be reported as special items when accrued, starting in the fourth quarter of 2016 and continuing through 2017.

“When we launched our turnaround plan last year we committed to transforming our company; to reduce costs, to leverage our scale and to become more efficient in all our operations, and that is exactly what we are doing,” said Bellemare. “While restructuring is always difficult, the actions announced today are necessary to ensure Bombardier’s long-term competitiveness and position the company to continue to invest in its industry leading portfolio while also deleveraging its balance sheet.”



Loading comments for Bombardier confirms progress on turnaround plan...


Recommended

Shree Airlines Joins Bombardier’s Family of CRJ Series Aircraft Operators

Bombardier Commercial Aircraft congratulates Shree Airlines on the launch of a new regional jet service with CRJ Series aircraft. “We are pleased to welcome Shree Airlines to the worldwide fa...

Successful June for JetLoan Capital

JetLoan Capital has announced that it completed another three transactions in June: The transactions were a Gulfstream G550, with a five-year term and $14 million loan; a Citation CJ1, with an 80%...

Boeing-Built Satellite Completes NASA’s Space Communications Network

TDRS-M satellite enables continued communication with International Space Station, Hubble Telescope The sixth and final Boeing Tracking and Data Relay Satellite (TDRS), launched today, will en...

Airbus successfully tests Dispenser Structure for GRACE-FO satellites

Airbus successfully tests the dispenser structure that will hold the twin satellites GRACE-FO (GRACE = Gravity Recovery and Climate Experiment, FO= Follow-On) during their launch. Once the satellites...

Boeing Helena Site Expands to Support 777X Airplane Production

New 90,000 square-foot facility to begin machining parts for Boeing’s newest family of twin-aisle aircraft. Over the past seven years, Boeing has built a strong presence in Montana, and last yea...