Published: Sun, November 11, 2018
Business | By Tara Barton

United Kingdom workers at risk from Bombardier global cuts

United Kingdom workers at risk from Bombardier global cuts

Mary Ellen McIlmoyle, president of a Unifor local that represents some of the 2,100 workers at Bombardier's aerospace wing at Downsview, said her members feel "betrayed". About 2,000 other cuts will be overseas.

Montreal-based Bombardier also announced the sale of "non-core assets" totaling around $900 million.

Bombardier reported a net income of about 149 million Canadian dollars in the third quarter, compared to a loss of 100 million Canadian dollars in the same quarter a year ago.

The company said it reached definitive agreements for the sale of non-core assets and the monetization of royalties, which is expected to generate approximately $900 million in net proceeds, increasing financial flexibility as it approaches the final deleveraging phase of its turnaround plan.

It comes months after Bombardier completed the disposal of its loss-making CSeries jet program to Europe's Airbus, which renamed the aircraft A220.

The restructuring, announced alongside Bombardier's third-quarter earnings, is slated for completion within 18 months and for savings of $250 million annually.

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The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'.

For the full year, Bombardier expects revenues of approximately $16.5 billion, at the low end of its guidance range. The companies argues that its shift of the C series to Airbus will allow it to focus on regional planes.

"When we have more information, we can assess how to minimize the number of laid-off employees", Legault told reporters. "We can not accept any further losses of functions from Northern Ireland, they are undermining the long-term sustainability of the company's presence here", she said.

Excluding one-off and one-time items, Bombardier posted quarterly adjusted earnings of 4 cents a share, above the consensus of analysts who expected a gain of 2 cents. Sales fell 5.1 per cent to US$3.64 billion, compared with the average estimate of US$3.87 billion.

Longview Aviation, the parent company to Viking Air Ltd., said once it completes its deal with Bombardier it will become North America's largest commercial turbo-prop aircraft manufacturer.

Bombardier CTO Francois Caza will also lead a new Advanced Technology Office, or ATO, that will apply aviation technology to its train business.

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