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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things -- Ignore unavailable to you. Want to Upgrade?

To: Jay Anderson who wrote (686)	11/24/1999 7:36:00 PM
From: Maple Leaf	Read Replies (1) \| Respond to of 1177

This thread seems pretty quiet for a company thats up 50% in a few months.Any comments on where the stock is headed in the next 3-6 months Here's a couple of articles from the National Post MONTREAL - Bombardier Inc. yesterday reported strong third-quarter earnings right in line with the market's hopes and its shares rose $1.55 to touch a new record high of $29.20 at the close. Aerospace was flying high in the third quarter and nine months of fiscal 2000 ending next Jan. 31. Aircraft deliveries were 64 in the quarter, up from 47 a year earlier. Analysts noted Bombardier's pre-tax earnings from aerospace for the nine months were $563-million, up 44% from a year earlier, and gross margin was 10.7%, up from 9.7%. The other divisions combined turned in pre-tax earnings of $165-million. Robert Brown, chief executive, told analysts Bombardier is on track to achieve a forecast 30% gain in earnings for the full year. It is negotiating with "several parties" in the consolidation of Europe's transit equipment industry now under way. Third-quarter net profit was $167.4-million (24½ a share), up 33% from $125.5-million (17½) a year earlier. Revenue rose 21% to $3.2-billion from $2.6-billion. After a $33.7-million special charge to cover workforce reductions at its German transit equipment operations, per-share earnings were 21½. Nine months' net profit was $481-million (68½), up from $360.3-million (50½) a year earlier, on revenue of $9.2-billion against $7.5-billion. After the special charge, per-share net income was 65½. Wednesday, November 24, 1999 Brazil ready for trade war Accuses Bombardier of trying to 'break' rival Embraer Ian Jack Financial Post OTTAWA - Brazil warned yesterday it is prepared to wage a multi-billion-dollar trade war with Canada over regional jets, while Bombardier Inc. said Brazilian subsidies have cost 4,400 Canadian jobs. The harsh words came as each country asked the World Trade Organization to probe whether the other has complied with a WTO ruling that banned export subsidies for commuter jets. Canada's Bombardier and Brazil's Embraer are fighting for dominance in the $10-billion-a-year market, and both governments said yesterday they do not believe their opponent has come clean. "Bombardier has made it clear from day one that their aim was to break Embraer," said a senior Brazilian diplomat, on condition of anonymity. "That's not a reasonable attitude. That's the kind of trade war that has no winners. But that's what they want, that's what they have." Bombardier was equally hard-line in a conference call held yesterday. Yvon Allaire, executive vice-president, said Brazil's subsidies have cost Bombardier over 400 jet orders since 1996, sales that would have created 4,400 jobs. And he cited a number of world organizations, including the Wold Bank and the International Monetary Fund, he said would be upset if Brazil fails to follow international rules on financing. "All of these international bodies would be appalled at a failure to implement such a clear [WTO] decision." Mr. Allaire insisted Brazil has not carried out the WTO order to stop offering cut-rate loans to buyers of Embraer jets through its ProEx subsidy program. He said if Brazil does not change its position, Canada should pursue a compensation claim for $10-billion, his estimate of lost sales, and by far the largest damages figure ever sought from the Geneva-based trade body. Brazil would react in kind, but the consequences for Canada will be worse, the Brazilian diplomat warned. "If we do the same, our numbers will be significantly bigger than that." The diplomat said Brazil has put into effect the Aug. 2 WTO decision, but Canada hasn't. "Canada did not implement the decision," he said. Brazil wants the entire Canadian industrial subsidy program, Technology Partnerships Canada, scrapped. The federal government changed the $300-million fund so it focuses on funding earlier-stage research at companies rather than finished products destined for export, but the diplomat said the end result is still an export subsidy. "As far as we're concerned, these payments must stop, unless there are radical changes to the program." The Canadian government said its actions should satisfy the WTO, but that the information provided by the Brazilians, "does not indicate that Brazil has brought ProEx funding into compliance with the ruling. "If a WTO panel confirms Brazil's non-compliance, and consultations do not produce an acceptable outcome, Canada will seek WTO authorization to retaliate," said Pierre Pettigrew, the Trade Minister. A senior Canadian official confirmed $10-billion is the figure the government is considering demanding if it launches a compensation claim. The WTO will set up a panel to examine the latest complaints within 10 days, then take two months to do its report. The WTO has to accept the panel report within 15 days after that, so by mid-February there should be a decision. From then the sides will have another month to implement the panel's findings. After that, either side could request permission to launch retaliation, which would take the form of blocking imports up to the level of lost sales as determined by the WTO. The $10-billion Canada could claim is a world record.