Bombardier gets new CEO amid problems

  • Associated Press
  • Thursday, February 12, 2015 1:13pm
  • Business

MONTREAL — Bombardier Inc., the world’s third-largest maker of civilian commercial aircraft, announced major changes in its top ranks Thursday as it deals with problems in its aerospace division.

Longtime chairman Laurent Beaudoin, a member of the family that has controlled the company since it was founded, will be replaced by his son Pierre Beaudoin, who has been chief executive.

The Montreal-based plane and train maker’s new CEO will be Alain Bellemare, effective Friday, which is also the date set for Laurent Beaudoin to step aside as chairman.

Bellemare the third non-family CEO in Bombardier’s history, has 18 years experience at United Technologies Corp., including at the Pratt and Whitney division that makes jet engines for Bombardier. Bellemare said they must improve profitability.

Company executives also revealed Thursday that its C-Series single-aisle airliner program cost has soared to $5.4 billion, up from $4.23 billion a year ago.

Bombardier last month wrote down value of its Learjet 85 program, resulting in a pretax charge of about $1.4 billion. Bombardier said it would suspend work on the new model of Learjet in order to preserve cash for other parts of the business.

A number of analysts said after the January announcement that investors had lost confidence in Bombardier’s management, sending the company’s B widely traded shares plunging to a multi-year low of $2.02 on Jan. 20.

Shares rebounded a bit since but were down Thursday by more than 10 percent, or 27 cents, to $2.18 in afternoon trading on the Toronto Stock Exchange.

On Thursday, Bombardier announced that it will suspend dividend payments and will seek shareholder permission to issue up to $2 billion in debt and new shares to bolster its cash reserves.

The company said the plan will be supported by the Bombardier-Beaudoin family. The changes came as the company said it lost 1.27 billion or 74 cents per share in its fourth quarter compared with a profit of $78 million or 4 cents per share a year ago. Revenue totaled $4.75 billion, up from $4.26 billion in the fourth quarter of 2013.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.