Bombshell from Bombardier
CBJ – It’s no secret there have been a number of issues plaguing Montreal-based Bombardier for the past several years, but few could have foreseen today’s announcement that President and CEO Pierre Beaudoin is stepping down while his father Laurent is retiring as chairman. Former United Technologies boss Alain Bellemaire is stepping in to replace Pierre Beaudoin.
The world-renowned manufacturer of airplanes and trains is also cutting dividends.
Much of the company’s current problems stem from a dearth of cash flow. With little money to spend, the new C Series passenger-jet program has faced several costly delays. The suspension of its Learjet 85 business-jet program only added to the misery.
Bombardier posted a net fourth-quarter loss of $1.6-billion or 92 cents per share, compared with net profit of $97-million or 5 cents in the year-earlier period. Revenue was up 12 per cent to $5.96-billion in the quarter ended Dec. 31, 2014.