Bombardier confirms progress on turnaround plan; announces initiatives to ensure competitiveness and improve margins
(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier confirms progress on turnaround plan; announces initiatives to ensure
competitiveness and improve margins
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The issuer is solely responsible for the content of this announcement.
* Actions include streamlining administrative and non-production functions
across the organization
* Footprint optimization and site specialization actions to reduce costs and
improve productivity
* Expect recurring savings of approximately $300 million by the end of 2018;
charge to be recorded in 2016-2017 to support actions
MONTREAL, QUEBEC--(Marketwired - Oct 21, 2016) - Bombardier (TSX: BBD.A)(TSX:
BBD.B)(OTCQX: BDRBF) announced today 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."
About Bombardier
Bombardier is the world's leading manufacturer of both planes and trains.
Looking far ahead while delivering today, Bombardier is evolving mobility
worldwide by answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.
Bombardier is headquartered in Montreal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
North America Index. In the fiscal year ended December 31, 2015, we posted
revenues of $18.2 billion. News and information are available at bombardier.com
or follow us on Twitter (at)Bombardier.
Bombardier, C Series, Global, Global 7000 and The Evolution of Mobility are
trademarks of Bombardier Inc. or its subsidiaries.
Contacts:
Simon Letendre
Senior Advisor, Public Affairs
Bombardier Inc.
514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
514 861 5727
www.bombardier.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 21.10.2016 - 13:12 Uhr
Sprache: Deutsch
News-ID 502085
Anzahl Zeichen: 5005
contact information:
Town:
West Montreal, QC
Kategorie:
Business News
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