MONTREAL-Bombardier Inc. announced Thursday it will cut about 5,000 jobs across the organization over the next 12 to 18 months as part of a new restructuring plan.
While the job cuts will save Bombardier about $250 million at full run-rate, the various other changes are all aimed at "optimizing production and management processes, flattening management structures and further reducing indirect costs", the company said.
Free cash flow came in "well below" expectations that Bombardier could break even on cash without falling back on its $635 million in proceeds from the sale of a Toronto plant earlier this year, said analyst Benoit Poirier of Desjardins Capital Markets.
Revenue will increase about 10 per cent to US$18 billion in 2018, with earnings before interest, taxes and special items targeted to climb about 20 per cent to as much as US$1.25 billion, the company said.
This is a developing story and will be updated.
"With the measures announced, we are confident that we will be able to reach our goals in 2020", Bellemare said during a conference call.
Longview, whose subsidiary Viking Air Ltd. makes turboprop aircraft such as the Twin Otter, intends to maintain supply chains for the Q400 series that now stretch from China to Ireland to Mexico, he added.
De Havilland is one of the oldest brands in commercial aviation.
Bombardier said it would try to turn its money-losing regional jet program around by slashing costs, and boosting volumes, but would also explore strategic options for the program.
Mary Ellen McIlmoyle, president of a Unifor local that represents some of the 2,100 workers at Bombardier's aerospace wing at Downsview, said her members feel "betrayed".
When asked about the Belfast operations, a spokeswoman told the Press Association: "Following Bombardier's announcement today, we will take the necessary time to evaluate what this means for our aerostructures and engineering services business. We understand that", he added, pledging continued support for the aerospace sector.
The strong profit came despite a five percent drop in quarterly sales from the same period a year ago to $3.6 billion.
In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg. He says Longview intends to maintain existing supply chains for the Q400 and Dash 8 series that stretch from China to Ireland.
The deals are expected to net the company $900 million.