First, it is paramount that you understand that this is not Bombardier Recreational Products that we’re talking about. The manufacturer of Sea-Doo, Can-Am, Ski-Doo and Evinrude was separated from this division of Bombardier back in 2011. Rather, Bombardier Inc announced last Thursday that it ” is in the middle of a five-year restructuring program aimed at growing revenue and profit,” which has included the sale of its majority stake in its money-losing CSeries jet to Europe’s Airbus.
This refocusing of the Canadian plane and train maker’s efforts towards its “core transportation and business jet units,” caused quite a stir with shareholders, accounting for a 14 percent drop to $2.74 Thursday morning. The sale of Bombardier’s turboprop program to a subsidiary of Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc. resulted in a gain of $900 million and 5,000 jobs cut.
In a report by Financial Post, “Under Chief Executive Officer Alain Bellemare, the company cut thousands of jobs in 2016, although it has also hired workers for key programs like its Global 7500 business jet. […] Bellemare is working towards reducing Bombardier’s net long-term debt of $9 billion.”
Additionally, Bombardier also announced sweeping changes to its business operations, including “redeploying its central aerospace engineering team and setting up a new team that will be tasked with applying learnings from its aerospace programs to its rail transportation business,” the company said. These changes will save Bombardier about $250 million all aimed at “optimizing production and management processes, flattening management structures and further reducing indirect costs,” the report said.
So again, this news has zero effect on Bombardier Recreational Products, the manufacturers of Sea-Doo.
