Bombardier to cut 5000 jobs after disappointing earnings

Bombardier Inc is selling off its turboprop program and another non-core division to focus on its transportation and business jet

The Montreal-based group also announced the sale of "non-core assets" totaling around $900 million, including the Q Series aircraft program and the de Havilland trademark, which was sold for some $300 million to a Canadian investment fund.

The move is expected to save the company about $250 million a year by 2021.

The company also sold its business aircraft flight and technical training business to another Canadian firm, CAE, for $645 million.

The company "has launched a company-wide restructuring initiative focused on optimizing production and management processes, flattening management structures and further reducing indirect costs", it said in a media release.

Bellemare said at the time the company was committed to the Q400 and CRJ.

He offered similar sentiments Thursday.

He said Bombardier has 1,500 CRJs in operation around the world.

"The transportation side and business jets are clearly the central focus of Bombardier going forward", Moore said.

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The job cuts will affect Wichita, though Bombardier Inc. spokesman Simon Letendre said Thursday he doesn't know how many local workers will be cut.

The changes came as Bombardier reported a profit of US$149 million or four cents per share in its latest quarter, compared with a loss of US$100 million or four cents per share in the same quarter a year ago.

The strong profit came despite a five per cent drop in quarterly sales from the same period a year ago to US$3.6 billion.

Excluding one-off and one-time items, Bombardier posted a quarterly earnings of four cents a share, above the consensus of analysts who expected a gain of two cents.

The Canadian plane and train maker said it would only be able to meet its 2018 free cash flow estimate by using $635 million (484.88 million pounds) in proceeds from the sale of a Toronto plant earlier this year.

Bombardier is selling its turboprop airliner and business jet flight training programs, and cutting 5,000 jobs.

"The Dash 8 turbo-prop is the flawless complement to our existing portfolio of specialized aircraft including the Twin Otter and the Canadair CL 215 and 415 series of water bombers", Longview Aviation chief executive David Curtis said in a statement.

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