Back in November of last year, Bombardier announced that it was cutting 5,000 jobs and selling Q Series turboprop aircraft program to Longview Aviation Capital. Well that plan has paid off as for the first time in five years, Bombardier finished the year with a profit, earning a net income of $318 million in 2018 as the company looks to complete its turnaround.
Bombardier’s total revenues for the year were just over $16 billion.
As a result of Bombardier restructuring its Commercial aircraft business, revenues in the division decreased by 24 percent from $2.3 to $1.8 billion with losses in their commercial aircraft segment.
Positives for Bombardier was the company saw growth in its larger business division, where it launched its new flagship Global 7500 jet, a 1 percent year-over-year revenue increase to just under $5 billion. The company had significant growth in its newer and fastest growing aerostructures and engineering services business which brought in revenues just under $2 billion, which was an impressive 21 percent increase over 2017’s revenue numbers.
Bombardier’s largest segment, land-focused rail transportation, saw a small growth of 4 percent taking revenues to just under $9 billion, which is great news considering the company’s struggles to meeting deadlines and quality targets.
Alain Bellemare, president and CEO for Bombardier commented on the company results for 2018 as, “a year of solid progress,” saying Bombardier “continued to strengthen our business and set a strong foundation for growth.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company. Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500.”
While the totals aren’t overwhelming, it seems that Bombardier has a clear plan for success as it moves into 2019.
By Jamie Barrie