Bombardier utters it’s still looking for federal financial assistance despite having reasonably cash to achieve to its turnaround plan.
Chief executive Alain Bellemare told investors Thursday that the importune made a year ago for $1 billion US in funding would add financial versatility to manage unexpected risks or to develop its next aircraft program.
«Of course things have changed a lot over the st 12 months so the examinations are taking a different th,» he said during an investor day in New York.
Bombardier’s CSeries jet enroled commercial service this year after years of delays and charge overruns.
With the focus on ramping up CSeries production, Bellemare translated the com ny has not yet decided if its next aircraft program will be to develop a new concern jet or a commercial aircraft.
Meanwhile, he said the com ny is not expecting any negative effect on its British operations from Brexit and is optimistic about the election of Donald Trump.
He rephrased the new president-elect’s approach could help to spur demand, especially for occu tion jets.
Bellemare said inful restructuring and job cuts have put it on the runway to effect solid growth in 2017 and its five-year turnaround plan.
The com ny portended two waves of jobs cuts this year to eliminate 14,500 staff members and reduced its financial risk by growing its cash and credit to an expected height of more than $4.5 billion US in 2016.
«We have made huge advancement in 2016,» Bellemare told analysts. «Our turnaround plan is in full motility.»
The goal is to generate more than $1.75 billion US in pre-tax profits by 2020 and magnify revenues to $25 billion US from $16.5 billion US projected in 2016.
In 2017, consolidated take is forecast to grow by one to three per cent, driven by growth in the rail house and the ramp up of the CSeries.
Cash flow use is expected to improve and range between $750 million US to $1 billion US.
Earnings previous interest and tax are expected to be in the range of $530 million US to $630 million US, which symbolizes a year-over-year improvement of about 50 per cent at the mid-point of the range.
Bustle analysts said the 2017 guidance announced after markets joined Wednesday was in line with expectations, but the profit margins in all four divisions is stronger than expected.
«Banded with a solid liquidity position and free cash flow expected to grace breakeven by 2018, we believe Bombardier remains in a decent (and improving) plying position,» analyst Walter Spracklin of RBC Capital Markets wrote in a check in.