did you read that in the DW April issue or what...

 

Bombardier is 9 billion dollars in debt and they are selling the snowmobile part of it to try to make a little money. They are going to try to sell it to someone in the family. That was on the canadian news last night.

 

I work with the aerospace division of Bombardier daily. They are the manufacturer of Learjets, and Canadiar series corporate jets, and small commuter airliners. These aircraft sell from 10 million dollars to 50 plus million per sample. They have been in financial trouble, as have all of the aircraft manufactures in the past three years. This division has the ability to make you or break you real quick. They have recently sold of a lot of there accounts recieveable to a collection agency for a 50% loss, to try and raise some capital. They have been selling aircraft that are completed for a significant loss. And now they are selling off there profit making sectors, not to make any owners of these products angry, but to keep the lights on, so they can regroup and try to maintain the aerospace division. sorry but thats the way of life when you run a business.

 

I don't understand how selling off a profit making division would help.. Oh God that division is making money GET RID OF THEM QUICK!!!

 

sounds like the best for business. better than letting it suck you down like Cannondale did.

 

I live only 25 km from Valcourt, Quebec, where Bombardier skidoos, ATVs and Seadoos are made, and I read plenty of news reports about Bombardier.

First of all, the recreational division is going great. Somebody I know who works at the recreational division and he told me that they expect to pass Honda for ATV sales in Canada within a year or two (I believe that because here in Quebec we see lots of Bombardier in the trails).

The problem comes from the planes division that is heavily in debt because of deep compedition with Umbraer and because of lagging sales following Sep 11th. They need to lower their debt, so that they will be ready to face growing demand for airplanes in a near future. They need money, this is why they must sell the recreation division, it will be very easy to sell, and will generate lots of fund.

The Bombardier family is expected buy back the recreation division will other investors. This is a good news for recreational products, they will be able to reinvest theirs profits in this division.

P.S. I just got my new 2003 Bombardier Traxter Max (2 seater). I am alrealy planning a 5 day ride, 1300 km (800) ride in northern Quebec to really try it.

 

I think that people are starting to fight with their knees and kickstarting clams that are painting their eyebrows with sulfer scented monkey ****.

 

This is from a news letter Quote:

Bombardier to focus on aerospace, transportation, sell other units
Dateline: Friday April 04, 2003

Bombardier Inc. will sell its recreational products division, issue new stock and cut dividends as it struggles to reduce its debt burden and return to financial health after losing C$615.2 million ($418 million) in the fiscal year ended Jan. 31.

In the prior year, Bombardier had restated earnings of C$31 million. Company officials anticipate that the sale of the snowmobile and jet ski product lines will raise C$1.5 billion. When combined with a stock offering of C$800 million, that will produce more than C$2 billion in new liquidity. Bombardier also confirmed it is in negotiations to sell its Defense Services business and Belfast City Airport.
The disposals will leave the company with its Transportation and Aerospace units, including its highly successful line of regional jets, the Q series of turboprops and its corporate aircraft. "Every time I see a story about restructuring, the phrase 'regional jet' is there," said Bombardier CEO Paul Tellier. "We are well positioned with the right product."

Bombardier Aerospace had revenues of C$11.3 billion in FY03, down from C$12.3 billion in FY02. It delivered 298 units versus 370 in the previous year. The deliveries included 220 RJs, 77 business jets and one amphibian. Deliveries for the current year are expected to be at the same level. The Transportation unit had sales of C$9.4 billion, up from C$7.0 billion.

Tellier also said he hopes to improve relations with the US given the fact that some 84% of Canada's exports go there. "I am deeply concerned about the deterioration of US-Canadian relations," he said in an apparent reference to friction between the countries over actions in Iraq. "The standard of living for all Canadians could take a beating from this. I like to believe that fences will be mended."--Sandra Arnoult

 

Do you guys think that they will retain the name BOMBARDIER as this might stay with the larger plane division, they might have to change the name, I cannot see two companies having the BOMBARDIER name?????

 

I would have to agree with ANGRY. THe Rotax motor is far superior to many others out there. But in there SeaDoos they were using 2 cylinders years after the other brands were running 3 cylinders that made more power. As far as price goes. They are the most expensive in almost everything. The newest seadoo which is supercharged has a msrp of like 11k. Mass produce stuff that is mediocre and you are likely to sell more. NUFF SAID