Guest Posted January 24, 2019 Share Posted January 24, 2019 Canadian Airline and Industry News Search Canadian Aviation News Bombardier to acquire Global 7500 aircraft wing program from Triumph Group Inc. Provided by Bombardier/Globle Newswire Bombardier enters into a definitive agreement to acquire Triumph’s Global 7500 wing manufacturing operations and assets Acquisition will secure the production ramp-up and long-term success of Bombardier’s Global 7500 program Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility Transaction is expected to close in the first quarter of 2019 for a nominal cash consideration Acquisition will strengthen Bombardier’s position as a leading aerostructures manufacturer Transaction is not expected to impact Bombardier’s consolidated 2019 EBIT and free cash flow(1) guidance, and 2020 targets MONTRÉAL, Jan. 24, 2019 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today announced a definitive agreement to acquire the Global 7500wing program from Triumph Group Inc. (NYSE: TGI). The acquisition will strengthen Bombardier’s position as a leading aerostructures manufacturer and secure the production ramp-up and long-term success of Bombardier’s flagship business jet. The acquired operations will be incorporated into Bombardier’s Aerostructures and Engineering Services segment. To support a seamless transition of wing production and deliveries for the Global 7500 program, which successfully entered into service in December 2018, Bombardier will enter into a lease agreement for Triumph’s Red Oak, Texas, facility and continue to operate the production line with the employees currently supporting the program. “This acquisition is a perfect strategic fit for Bombardier Aerostructures,” said Danny Di Perna, President, Bombardier Aerostructures and Engineering Services. “It will allow us to bring our extensive technical expertise to one of the industry’s biggest growth programs, while solidifying our position as a leading wing provider. We look forward to welcoming the Triumph employees to Bombardier and ensuring the success of the Global 7500 program.” The acquisition of the program’s assets and obligations for a nominal cash consideration is expected to close in the first quarter of 2019, subject to certain closing conditions. Bombardier will assume ongoing working capital investments and usual costs associated with the program’s production ramp-up, which are expected to fall within Bombardier’s consolidated 2019 EBIT before special items and free cash flow guidance ranges, and 2020 objectives. On a business segment level, Aerostructures revenue guidance for 2019 is adjusted upwards to between $2.25 billion to $2.50 billion, reflecting additional intersegment revenues. The segment’s 2019 EBIT margin before special items(1) guidance is also adjusted to approximately 7.5%, reflecting marginal earnings from these additional sales during the program ramp-up. For 2020, the EBIT margin before special items objective of 9% to 11% remains unchanged. At Business Aircraft, the 2019 EBIT margin before special items guidance of approximately 7.5% remains unchanged. For 2020, Business Aircraft now targets 50 basis points of margin growth to approximately 8%, the low-end of the previously provided objective, reflecting the short-term impact of maturing the Global 7500 wing production process. About the Global 7500 aircraft The Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. With its award-winning bespoke interior featuring a full-size kitchen and four true living spaces, the Global 7500 aircraft offers the ultimate in-flight experience. Setting the benchmark for the most exceptional cabin interior, the Global 7500 aircraft offers the most innovative features such as Bombardier’s patented Nuage seat, meticulously designed for maximum comfort and the revolutionary nice Touch cabin management system (CMS), a new way to connect with the Global 7500 aircraft cabin through the Bombardier Touch dial, featuring business aviation’s first application of an OLED display Link to comment Share on other sites More sharing options...
Guest Posted January 25, 2019 Share Posted January 25, 2019 NYC transit chief slams Bombardier, halts rail car deliveries over problems The head of the New York City Transit Authority and former chief executive at the Toronto Transit Commission says he is having "deja vu times two" with problems around trains from Bombardier Inc. Andy Byford says he's having 'deja vu' from issues with rail cars made by Montreal-based company The Canadian Press · Posted: Jan 24, 2019 5:45 PM ET | Last Updated: an hour ago A Bombardier Olympic Line train departs from near the Olympic Village Canada Line Station in Vancouver, in this January 21, 2010, file photo. Andy Byford, head of the New York City Transit Authority and former chief executive at the TTC says he's halting all deliveries of rail cars from the Montreal company. (Darryl Dyck/Canadian Press) The head of the New York City Transit Authority and former chief executive at the Toronto Transit Commission says he is having "deja vu times two" with problems around trains from Bombardier Inc. Andy Byford told the state transit authority this week that New York City Transit will halt new train car deliveries until more of the existing cars are fixed. At a Metropolitan Transportation Authority committee meeting Tuesday, he cited issues with the HVAC system software, springs between the cars and doors that were "weeping oil." Byford called the ongoing difficulties "gruelling" and "depressing," recalling the production delays and defects that plagued streetcar orders during his five years at the helm of Canada's largest municipal transit authority. Via Rail places $989M train order with Germany's Siemens instead of Bombardier Earlier this month, Swiss Federal Railways opted to stop taking new trains from the Montreal-based company until it fixes the ones already in service. Bombardier is also facing an upcoming deadline that was delayed to Feb. 1 for delivery of the first six of 76 vehicles for Toronto's Crosstown Eglinton light rail line. Bombardier did not respond immediately for comment. Link to comment Share on other sites More sharing options...
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