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Bombardier to stop planned layoffs as it prepares to boost aircraft production

Bombardier to stop planned layoffs as it prepares to boost aircraft production

Canadian aircraft and train maker Bombardier Inc. has canceled its announced employee layoffs and may soon recall some workers after deciding to boost production of regional and business aircraft.
"Today we are talking more about stability in our organization and we'll see in some cases if we will recall some employees," Bombardier Aerospace president Pierre Beaudoin said Wednesday in a conference call to discuss second quarter results.
The world's fourth-largest airplane manufacturer had completed 874 of 1,330 planned layoffs. The layoffs to date include 390 people at its facility in Mirabel, north of Montreal.
The global airplane and rail manufacturer beat market expectations when it reported earnings from operations before special items of five cents per share or US$91 million (euro67 million). That's up two cents a share from the same period in 2006.
Analysts polled by Thomson Financial had looked on average for earnings excluding items of four cents per share in the quarter.
However, in terms of net loss _ which included a major non-cash item during the quarter that's not included in operating earnings _ Bombardier was in the red.
It booked a second-quarter loss of US$71 million (euro52 million), after a year-ago profit of US$58 million (euro42.5 million), on an expected US$162 million (euro119 million) writedown on its investment in the Metronet Rail upgrade of the London subway system. The company reports in U.S. dollars.
Consolidated revenues rose to US$4 billion (euro2.93 billion) in the period ended July 31, compared to US$3.5 billion (euro2.57 billion) in the same period a year ago.
The employee recall may be required because the Montreal-based company plans to increase aircraft production on the strength of its improved backlog and confirmed commitment from suppliers.
Bombardier Aerospace's backlog has grown by 38 percent since the start of the fiscal year to a record US$18.2 billion (euro13.3 billion). Net orders for the second quarter have more than doubled to 187, including 84 for regional aircraft. That compares to orders for nine aircraft in the same period of 2006.
Strong demand and rigorous management of costs have generated the solid quarterly results in both aerospace and transportation, chairman and CEO Laurent Beaudoin told analysts and media.
The transportation business has seen new orders from emerging markets such as China, India and Russia.


Updated : 2021-05-12 22:35 GMT+08:00