11:33:16 EDT Fri 26 Apr 2024
Enter Symbol
or Name
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CA



Bombardier Inc
Symbol BBD
Shares Issued 1,443,776,625
Close 2014-07-24 C$ 3.70
Market Cap C$ 5,341,973,513
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Globe says analysts mull Bombardier's reorganization

2014-07-25 08:21 ET - In the News

The Globe and Mail reports in its Friday edition the shakeup at Bombardier's aerospace division appears to be a step in the right direction, but it also raises concerns that there is more bad news to come. The Globe's Bertrand Marotte writes Bombardier is splitting aerospace into three divisions reporting directly to chief executive officer Pierre Beaudoin. The new unit is aerostructures and engineering services, which the company hopes will be an important revenue generator. "The new structure will create more direct responsibility and accountability, with a side benefit of greater transparency for investors," Cormark Securities analyst David Newman said in a note Thursday. "We will finally be able to disaggregate the performance of the various aerospace units, especially commercial versus business jet, with commercial continuously challenged, in our view." Desjardins analyst Benoit Poirier said in a note that the timing of the reorganization announcement a week before Bombardier unveils second-quarter earnings "creates uncertainties." Other analysts have questioned whether the sudden departure of Mr. Hachey signals there are more problems to be ironed out in aerospace or further C Series delays.

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