Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gilbert Drapeau who wrote (965)	1/28/2002 11:45:44 AM
From: Gilbert Drapeau	Read Replies (3) \| Respond to of 1177

Bombardier Statement on WTO Panel Ruling MONTREAL, QUEBEC--JANUARY 28, 2002 - 11:04 EST Bombardier is pleased to note that all the Canadian financing programmes that the Corporation uses in its export markets have been found to be in full conformity with WTO rules. The WTO has rejected all Brazilian complaints relating to these programmes, both as such, and as applied in general. It is with regret that Bombardier notes that on the subject of matching, the WTO panel's decision differs with the arguments of Canada, the European Union and the United States which all emphasised the importance of matching, as defined by the OECD rules, as the only efficient means, in many instances, to counter non-market practices such as Brazil's subsidized financing. Bombardier notes that by ruling on Canada's matching, the WTO in fact confirmed that Brazil had offered financing on non-market terms, that are prohibited under WTO rules. Bombardier sincerely hopes that the bilateral discussions between Canada and Brazil will put an end to the dispute and will conclude with an agreement, notwithstanding that competent international bodies will continue discussions on the subject of matching. While, since 1999, the WTO has ruled seven times out of 10 in favour of Canada, Brazil has continued to offer subsidized financing and Embraer continues delivering aircraft benefiting with financing that has been ruled illegal several times. It is in this particular context that Bombardier had to resort to identical financing, in order to neutralize the Brazilian offer so that the customer could make his choice solely on the product and service offering. This was done because Bombardier's competitor did not adhere to international trade rules. Bombardier, which has only ever requested market-based financing by all parties, obviously hopes that matching will no longer be a necessary recourse. However, in the absence of an agreement leading to an adherence to the rules, Bombardier underlines the importance to ensure that the Canadian aerospace industry is not put at risk by the illegal practices of competitors who remain indifferent to the summons of international bodies. The future of the aerospace industry in Canada and of tens of thousands of jobs depend on it. Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It is also a provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe and Asia-Pacific and its revenues for the fiscal year ended Jan. 31, 2001 totalled $16.1 billion Cdn. /T/ BACKGROUNDER BOMBARDIER IN CANADA AT-A-GLANCE * Bombardier is the global market leader in passenger rail transportation, regional aircraft, business jets and personal watercraft. * Its revenues for the fiscal year ended January 31, 2001 totalled $16.1 billion* and its target for fiscal 2001-2002 is $20.8 billion. * It has production facilities in 24 countries and employs some 80,000 people. * Over 27,000 people or 34% of its total workforce is in Canada. * Canada accounts for 6% of the Corporations' revenues; United States 44%, Europe 41%, Asia 4% and others 5%. * Bombardier exported $8.4 billion worth of products in fiscal year 2000-2001. * Bombardier's Canadian plants and administrative offices are located in seven provinces. It is among the three largest manufacturers in the Greater Montreal and Greater Toronto areas. * Bombardier has invested more than $7 billion in Canada since 1986 in product development, ranking sixth in Canada in terms of R&D investments. * Each year, Bombardier procures approximately $2 billion worth of goods and services from over 5,000 Canadian suppliers. Bombardier and the Canadian Public Sector * For fiscal year 2000-2001, $373 million in sales (or about 2%) were to the Canadian public sector, mainly in the area of mass transit. * Bombardier's investments in aerospace in Canada since 1986 amounted to more than $6 billion. Canadian Government R&D contributions for the same period were $396 million on which Bombardier will have repaid, through royalties on sales, $510 million at the end of the repayment schedule. * For the development of the first generation of regional jets, Bombardier invested $250 million and the Canadian government, through its Defence Industry Productivity Programme (DIPP), loaned it $38 million. Based on royalty reimbursements, Bombardier has already repaid $57 million and will have paid back a total of $92 million at the end of the programme. * All amounts mentioned in this backgrounder are in Canadian dollars.