Estimated reading time 2 minutes, 24 seconds.
Bombardier has announced that it will consolidate its aerospace assets into a single, streamlined, and fully integrated Bombardier Aviation business unit, which will be led by David Coleal.
“We are very excited to announce the strategic formation of Bombardier Aviation,” said Alain Bellemare, president and chief executive officer, Bombardier Inc. “It is the right next step in our transformation. The consolidation will simplify and better focus our organization on our leading brands, Global, Challenger, Learjet and the CRJ. It will also allow us to better support our customers and generate value for shareholders.”
“With our clear vision for the future of Bombardier Aviation, we will focus our aerostructures activities around our core capabilities in Montreal, Mexico and our newly acquired Global 7500 wing operations in Texas,” Bellemare continued. “Collectively, these facilities provide Bombardier with all the skills, technologies and capabilities to design, produce and service the current and next generation of aircraft.”
As the company moves to optimize its global manufacturing footprint, Bombardier will pursue the divestiture of the Belfast and Morocco aerostructures businesses. These are great businesses with tremendous capabilities.
Bombardier Aviation will continue to be the best business aircraft franchise in the world, and well positioned to maximize the value of its proven CRJ regional jets. Together, Bombardier Aviation and Bombardier Transportation will be two strong pillars supporting Bombardier’s future.
Bombardier also announced that its board of directors, upon the recommendation of its Human Resources and Compensation Committee, decided to terminate its automatic securities disposition plan (ASDP) established on Aug. 15, 2018, in accordance with its terms.
Financial results
Bombardier announced on May 2 its financial results for the first quarter of 2019, in line with the preliminary results published on April 25, 2019.
First quarter 2019 adjusted EBITDA and adjusted EBIT were $266 million and $171 million, respectively, on revenues of $3.5 billion. On a reported basis, EBIT was $684 million, driven higher by the $516 million gain on disposal of the training business closed during the quarter. Free cash flow usage in the first quarter was $1.0 billion, supporting the intense ramp-up of key rail projects and Global 7500 aircraft deliveries in the second half of the year. Cash flow usage from operating activities amounted to $907 million in the first quarter.
