Bombardier names new CEO in management rejig
Reuters
Published Feb 12, 2015 07:43AM ET
Updated Feb 12, 2015 08:20AM ET
Bombardier names new CEO in management rejig
By Swetha Gopinath
(Reuters) - Bombardier Inc (TO:BBDb) Chairman Laurent Beaudoin is retiring after more than 50 years as part of a management shuffle that also brings in a new chief executive at a time when the company is struggling with delays in its CSeries jet program.
The Canadian plane and train maker named Alain Bellemare, a former United Technologies Corp (N:UTX) executive, as CEO and president.
Bellemare will take over from Pierre Beaudoin, Laurent Beaudoin's son.
Bombardier also reported a quarterly loss due to a $1.4 billion charge related to its decision to suspend its Learjet 85 program.
The company suspended the program to focus on bringing its CSeries jet into service by the end of 2015, after years of delays and cost overruns.
Bombardier, which had said last month it had enough liquidity to fund its development programs, announced plans on Thursday to raise more than $2 billion through debt and stock offerings.
The company also said it would explore options for some of its businesses to reduce debt.
Bellemare has worked for 18 years at United Technologies, maker of Pratt & Whitney aircraft engines. Mostly recently, he headed the company's propulsion and aerospace business.
Pierre Beaudoin will become chairman, succeeding his father Laurent, who will remain on the board as chairman emeritus. All the appointments are effective Friday.
Bombardier posted net loss of $1.59 billion, or 92 cents per share, for the fourth quarter ended Dec.31, compared with a profit of $97 million, or 5 cents per share, a year ago.
Revenue rose 12 percent to $5.96 billion.
Excluding the charge related to Learjet, the company earned 4 cents per share, compared with analysts' average estimate of 2 cents, according to Thomson Reuters I/B/E/S.
Bombardier shares closed at C$3.04 on Wednesday on the Toronto Stock Exchange. The stock has lost more than a quarter of its value in the past year.
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