Bombardier Aerospace to cut production: CEO
Last Updated: Monday, November 9, 2009 | 4:09 PM ET
The Canadian Press
Pierre Beaudoin, president of Bombardier Aerospace, says dwindling demand will force the company to cut production. (Ryan Remiorz / Canadian Press)Bombardier Inc. (TSX:BBD.B) employees should expect additional cuts in aircraft production that might lead to more layoffs as Canada's big aircraft and rail equipment maker adjusts to dwindling demand, CEO Pierre Beaudoin said Monday.
The Montreal-based manufacturer has already announced 4,400 layoffs this year because of lower demand for its business and regional jets.
The lack of orders will force the company to consider increasing that number, Beaudoin told reporters after addressing the Canadian Club of Montreal.
Details of the changes will be announced before the end of January. The company discloses its third-quarter results on Dec. 3.
"It's a tough market, the commercial aircraft market, right now, so it's likely we'll have adjustments," he said.
Bombardier spokesman Marc Duchesne later said layoffs could be avoided if the production cut isn't too deep.
The company, which had 66,900 employees at the end of its last fiscal year in January, had hoped to avert regional jet layoffs by securing additional orders from several intense marketing and sales campaigns.
Beaudoin declined to indicate how successful those efforts have been.
The pace of business jet deliveries appears to be less than what the company had forecast as airlines cope with the impact of the recession on their business.
It had expected a 25-per-cent reduction this year. But deliveries decreased by 37 per cent in the third quarter alone, according to the General Aviation Manufacturers' Association.
Some analysts have predicted Bombardier would further reduce its business aircraft production in the coming months.
On the Toronto Stock Exchange, Bombardier shares increased four cents to $4.65 in afternoon trading.
