Bombardier plans more job cuts, Russia plans intact
(Reuters) - Canada's Bombardier Inc (BBDb.TO: Quote) plans to cut more jobs and halt new hiring to help save costs, it said on Thursday, and added that commercial talks for a Russian assembly plant are ongoing despite sanctions.
Bombardier, which manufactures planes and trains, also sought to allay worries about the pace of its cash burn after posting higher revenues but lower net income.
Bombardier is in talks with Russian state-owned industrial and defense conglomerate Rostec to open a manufacturing facility for the Canadian firm's Q400 turboprop jet.
The European Union, U.S. and Canada have ratchet up sanctions against Russia over the conflict in Ukraine.
"We're working hard to get to an agreement, so what's going on in Russia has not affected our commercial discussions," Chief Executive Pierre Beaudoin. "This is a situation that evolves every day."
The company last week said it will restructure its aerospace division, bruised in recent years by multiple delays in its cash-draining CSeries program and by shrinking market share for its existing aircraft portfolio.
Test flights on the CSeries were grounded two months ago due to an engine problem and Bombardier reiterated that tests were expected to resume "in the coming weeks" without giving further details.
The ambitious CSeries, which Bombardier hopes will dominate the 100-to 150- seat market, is already 18 to 24 months behind schedule.
Bombardier's stock, down more than 20 percent this year, was off 1.6 percent on the Toronto Stock Exchange. Continued...