Bombardier Layoffs?

[howey]

http://www.avweb.com/eletter/archives/b ... tml#205299

From AvwebBiz:

Analysts are predicting Bombardier will announce layoffs and production slowdowns this week as part of its quarterly reporting. The Montreal-based company is doing well with its business jet division but has seen only a trickle of orders for its regional airliners this year. There were no orders in Q2 and only five in Q1. The order backlog is also creeping down and is at an uncomfortably low 11 months for the Q400 line and a slowdown has already been put in place at that operation. The CRJ line backlog is at 18 months, the low end of the company's backlog comfort zone.

Slowing down a production line is a costly business but may be necessary. Ironically, however, a lot of airlines are getting ready to retire older regional airliners and it could be only a matter of months before the company would be forced to ramp up production. On the other hand, the business jet market is acutely affected by overall business conditions and a close eye is being kept on that market for signs of weakening.

[Vickers vanguard]

I wouldn't have been surprised given the current economy...........however, bombardier started sending RECALL registered letters to layed-off employees as of today. Funny what speculation can do !
The Cl300 is picking-up pace.

[dcabrown]

Hi, I'll share some comments from some of the analyst reports I have access to.

""On the Aerospace side, revenue was US$2.1b, slightly better than our expectation .....deliveries were
above expectations.... Booking activity for business jets continued to improve as net orders
came in at 43 units....the company maintained its generally positive outlook for the business jet
market. As expected, booking activity for regional aircraft remains challenging—Bombardier did not receive any orders
for Q-400s or CRJs in the quarter. Hence, the company expects negative...in aerospace (from neutral) as a result of
lower cash advances from regional airlines. Although Bombardier noted that it continues to “align production rates to
reflect market demand”, it did not quantify the production line decrease, if any.....""

This is only one analyst.

I have taken a look at a few reports. Seems that there may be some SHORT TERM declines in production rates, but the overall tone seems to be positive. I didn't go through the comments in the usual detail that I do, but it SEEMS like there may be a temporary lull in Q400/CRK production, whereas bizjet production and outlook seems reasonable.

Analysts seem to be modestly positive about BBD. Looks like the Transportation business is maintaining stability in the company's fortunes.

[Vickers vanguard]

keep in mind that they could layoff people in Toronto (Q400), while others are being recalled in Montreal as is the case right now.........different unions.