Belfast Telegraph

Bombardier cost-cutting puts it on course for profit

By John Mulgrew

Cost-cutting has helped slash Bombardier's commercial aircraft losses, including the part Belfast-built CSeries, to $450m (£393m), the firm has said. The Canadian-owned aerospace giant, which employs approximately 5,000 people across Northern Ireland, added that it now hoped to turn a full-year profit after posting losses of around $94m (£76m) for the past three months.

Bombardier reported consolidated revenues of $3.7bn (£3bn) in the third quarter, and £12bn (£9.7bn) in the first nine months of this year.

Speaking about the CSeries jets, a spokesman said: "We adjusted the delivery forecast for the CSeries aircraft program for the full year from 15 to seven aircraft as a result of engine delivery delays by our supplier Pratt & Whitney."

The plane-maker is bringing forward around 200 job cuts here this year - the remainder of 1,080 staff redundancies that it announced in February.

The losses were initially scheduled to be split across this year and next year, but the firm is now bringing forward the rest within "the next few months".

Alain Bellemare, Bombardier's president and chief executive officer, said: "We continue to gain momentum as we execute our turnaround plan and transform our company.

"In the third quarter, we again delivered on our financial commitments, we achieved our program milestones and we continued to take the hard actions necessary to improve productivity, reduce costs and optimize our operations.

"As we close out 2016, we are confident in our strategy, our turnaround plan and in our ability to achieve our 2020 goals.

"We remain focused on improving operational efficiency, flawlessly ramping-up our new programs and maintaining a disciplined and proactive approach."

According to the latest results, Bombardier delivered 16 commercial aircraft, including the C Series, QSeries and CRJ jets, during the last quarter.

It also delivered 36 business aircraft, which includes planes such as the Global 7000.

Fears of further Northern Ireland job losses at the company grew after it announced it was cutting another 7,500 positions - some 10% of its workforce - across its operations. But the firm has not disclosed how many workers will go here on top of the 1,080 announced in February.

Belfast Telegraph