Bombardier is selling off two businesses and cutting 5,000 jobs


The Montreal-based company also announced a restructuring to optimize production and management processes, which is expected to eliminate about 5,000 jobs and result in savings per year of about 250 million Canadian dollars by 2021.

The Wichita site - which assembles Learjets, performs flight testing of all the company's aircraft and also repairs and maintains Bombardier's full line of business jets - employs about 1,600 people. President and CEO Alain Bellemare said in a statement.

Earlier on Thursday, Bombardier forecast 2019 revenue would grow by 10 percent to $18 billion or more, driven by a pickup in deliveries of Global 7500 jets. "The ATO will focus on systems design and engineering, including applying experience from Bombardier's aerospace programs to its rail transportation business", it said. In a conference call with investors this morning, John Di Bert, the chief financial officer of Bombardier said that the announced actions were created to show that the company's focus was on efforts to grow earning and cashflows saying: "We continue taking concrete actions to reshape Bombardier's portfolio".

The company's third-quarter revenues reached $3.6 billion USA, a 48 per cent increase compared to its earnings for the same period past year.

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Bombardier also announced that it will be selling its Q400 aircraft program and de Havilland trademark to a subsidiary of Longview Aviation Capital.

Bellemare was brought on board in 2015 to shore up the company that was in serious financial trouble with the CSeries program. Analyst Ferguson claims that the company is committed to streamlining its operations and expects even more asset sales that will turn the company into a shadow of its former self. A spokesperson for Bombardier confirmed in an email to BNN Bloomberg that approximately 3,000 of the job cuts will happen in Canada. Analysts, on average, expected US$3.87 billion in revenue and a profit of two cents per share. In February 2017, the federal government said was providing $372.5 million in loans over a four-year horizon to "support thousands of good middle-class jobs".

Free cash flow usage for the quarter was $370 million, an improvement of 25% year over year.

CAE is picking up the training business for $645 million, along with spending an additional $155 million for the monetization of royalties from the business.