Bombardier Inc. said it will sell its aircraft component manufacturing factories in Morocco and Northern Ireland as the Canadian plane-and-train maker pushes ahead with a bumpy turnaround effort now in its fourth year.
“[This] is the right next step in our transformation,” Bombardier Chief Executive Alain Bellemare said in a statement. “The consolidation will simplify and better focus our organization on our leading brands, Global, Challenger, Learjet and the CRJ. It will also allow us to better support our customers and generate value for shareholders.”The move highlights Mr.
The development comes as Bombardier prepares to meet investors at its annual meeting in Montreal Thursday morning. Shareholders have in recent days expressed concern that Mr. Bellemare can keep his five-year plan to fix the company on track given trouble with deliveries on big rail contracts. Bombardier shares fell sharply last week after the plane maker issued a surprise profit warning, slashing both first-quarter and full-year financial targets because of the rail trouble. It remains unclear whether the company is sticking with its previous goal to build a multinational that will generate US$750-million in free cash flow and earnings before interest, taxes, depreciation and amortization of US$2.25-billion on revenue of US$20-billion by 2020.The train business is key to Mr.