Bombardier Announces Measures to Face Current Environment
MONTREAL, QUEBEC--SEPTEMBER 27, 2002 - 07:30 EDT
*$5 billion reduction in assets under management at Bombardier
Capital
*Adjustments to cost structure in aerospace sector
Bombardier announced today measures to reduce the debt of
Bombardier Capital, to align its aerospace cost structure to the
business aircraft market and, as a result, to increase its
financial flexibility to face the current uncertain economic
environment.
Bombardier intends to reduce Bombardier Capital's assets under
management by approximately $5 billion, mainly through the sale
and gradual wind-down of the receivable factoring portfolios for
Bombardier's manufacturing sectors, as well as the business
aircraft financing portfolios. Bombardier Capital will
concentrate on inventory finance, railcar leasing and interim
financing for Bombardier Aerospace regional aircraft.
Proceeds from the sale and gradual wind-down of the receivable
factoring and business aircraft financing portfolios will be
applied to the reduction of Bombardier Capital's debt. These
transactions will be conducted in an orderly fashion and will be
spread over a period of several months.
Bombardier Aerospace simultaneously announced it will reduce its
cost structure and employment levels. The workforce reduction
entails the laying off of 1,980 people or about 6% of Bombardier
Aerospace's entire workforce. It concerns all levels of employees
and will affect all Bombardier Aerospace production sites in
Canada, the United States and the United Kingdom.(1)
"The measures we have put in place today, once they are carried
out, will enhance Bombardier's financial flexibility in the
context of the uncertainties of this unpredictable economic
environment," observed President and CEO Robert E. Brown.
While recognizing that circumstances or events outside its control
may occur, Bombardier maintains its financial targets for the
current financial year, regardless of the sale and gradual
wind-down of the Bombardier Capital portfolios. Maintaining these
targets also takes into account the good performance of the
transportation and recreational products sectors.
Bombardier Inc., a diversified manufacturing and services company,
is a world-leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It also provides financial services and asset management
in business areas aligned with its core expertise. Headquartered
in Montreal, Canada, the Corporation has a workforce of some
80,000 people in 24 countries throughout the Americas, Europe and
Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002
stood at $21,6 billion. Bombardier trades on the Toronto, Brussels
and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" that are
subject to risks and uncertainties. For information identifying
legislative or regulatory, economic, climatic, currency,
technological, competitive and other important factors that could
cause actual results to differ materially from those anticipated
in the forward-looking statements, see Bombardier's Annual Report
under the heading Risks and Uncertainties in the Management's
Discussion and Analysis section. |
