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Bombardier cutting 6,600 jobs


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MONTREAL (Reuters) - Bombardier Inc. said Wednesday it will cut almost a fifth of its rail workers and close seven European plants in a sweeping restructuring rarely seen in Europe's job-conscious railcar making sector.

Bombardier, the world's biggest train maker and third largest civil aircraft manufacturer, said the program will cost C$777 million ($580 million) over three years but save it C$600 million a year.

The Montreal-based company took a C$457 million restructuring charge in the fourth quarter and expects charges of C$215 million next year and C$105 million in 2006.

"We are beyond the days where we had to have plants in every state in Germany and every province in France to get contracts," Bombardier president and chief executive Paul Tellier told reporters.

Bombardier said it lost C$448 million ($337 million) or 26 Canadian cents a share, in the quarter to Jan. 31, mainly because of the costs of laying off 6,600 rail workers.

That compared with a loss of C$1 billion or 75 Canadian cents a share in the year earlier quarter when the company restructured other units.

Investors reacted by sending Bombardier shares down 39 Canadian cents or about 6 percent to C$6.40 in Toronto at midday Wednesday.

Analysts said restructuring of the money-losing rail unit was expected. But some expressed concern about Tellier's ability to improve profit margins in that business and bolster the other half of the company, which makes regional and business aircraft.

Bombardier's aerospace unit, where the work force has been cut by 20 percent over the last two years, earned C$118 million, compared with a year-earlier loss of C$376 million.

Overall, company revenues rose to C$6.4 billion from C$5.9 billion, thanks to a 10 percent jump in sales of Bombardier's Learjet, Challenger and other business jets.

Bombardier will also cut 680 positions across its Canadian operations and about 320 jobs in the United States and Mexico

http://money.cnn.com/2004/03/17/news/inter...ombardier.reut/

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Nope :D

Actually, my username did come from the Bombardier company.

One afternoon last year I was riding my city's light-rail system and I saw a sign on one of the train-cars that read "Built by Bombardier Corporation".

I just stuck to that word as a username.

B)

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