The pandemic cost US $ 2.3 billion (more than 3 billion Canadian dollars) to Bombardier so far, and to survive, the over-indebted multinational will have to further cut spending and cut jobs.
• Read also: Bombardier investigated for corruption in connection with Indonesia contract
• Read also: Bombardier returns to profitability
“Our cost structure today is far too large for the size of business that we are going to have ”, declared Thursday the big boss of Bombardier, Eric Martel.
The leader did not want to advance on the number of positions that could disappear. He said around 70 Bombardier employees and around 30 consultants from an outside firm are currently combing the company’s expenses.
Mr. Martel assured that the future of the three aerospace plants of Bombardier in Quebec was not threatened. However, he indicated that the size of the largest of them, located in the Montreal borough of Saint-Laurent, could be reduced.
Even though Bombardier lobbyists recently contacted Quebec for possible financial support, Eric Martel does not think he needs government assistance in the short or even medium term, unless the health crisis worsens seriously.
Bombardier returned to profitability in the third quarter, recording net profits of US $ 192 million (over C $ 250 million). However, these come from its rail division, which will soon be sold to Alstom.
In business aviation, the order book shrank 15% to US $ 12.2 billion (over C $ 15.9 billion).
Bombardier is currently delivering more planes than it sells, a situation that should last for some time to come, Martel warned.
“The level of activity is extremely encouraging and we are seeing selling prices come back [à la normale] quietly, ”he rejoiced.
Bombardier’s quarterly revenues fell 5.3% to US $ 3.5 billion (over C $ 4.5 billion).
“We will collaborate”
Bombardier also revealed on Thursday that it was the subject of an investigation for corruption by the United Kingdom’s Serious Fraud Office in connection with the sale of CRJ1000 aircraft to Indonesian carrier Garuda in 2012.
“We are very open. We will collaborate in the investigation, we will provide them with the information they need, ”insisted Éric Martel.
Bombardier at 3e trimester
- Profits nets : 192 millions $ US
- Total income: 3,5 milliards $ US
- Revenue from business aircraft: 1,2 milliard $ US (up 10%).
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