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Monday, November 30, 2015

Bombardier Lays Out 2016 Outlook

Juliet Van Wagenen

Bombardier Global 6000, Challenger 650 and Learjet 75 aircraft
Bombardier Global 6000, Challenger 650 and Learjet 75 aircraft. Photo: Bombardier

[Avionics Today 11-30-2015] As 2015 comes to a close, Bombardier has outlined the company’s strategic and transformation objectives for 2016. In the coming year, Bombardier expects its liquidity position to be strong, driven by the previously announced investments from the Caisse de Depot et Placement du Quebec (CDPQ) in Bombardier Transportation and from the Government of Quebec in the C Series program, in each case once completed upon satisfaction of their respective conditions to completion.

Bombardier also expects cash usage to improve as a result of Bombardier Transportation deliveries and the reset of the production rate for the Global 5000 and Global 6000 aircraft. The reset of the Global 5000 and Global 6000 production rates will be driving revenue down, according to the company. Earnings will be lower due to this production scaleback as well as from the C Series program ramp-up.

2016 will also be a year of disciplined execution of the Bombardier transformation plan and of its aerospace programs, according to the company, positioning the corporation well to gradually rebuild earnings and cash flow towards its 2018 and 2020 objectives.

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