The Successful Investor Hotline – Friday, May 22, 2015

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $2.52 and BBD.B $2.47, plans to cut production of its Global 5000 and 6000 business jets. That’s partly because economic sanctions have hurt sales in Russia. Demand has also weakened in China and Latin America. The company will replace these planes with newer, larger versions called the Global 7000 and 8000 in 2016 and 2017. That will help it compete with new models from Gulfstream Aerospace and Dassault Aviation. As a result, Bombardier will lay off 1,800 employees (about 3% of its workforce) at its plants in Toronto, Montreal and Belfast, Northern Ireland. It didn’t say how much it expects to pay in severance and other costs. Over the next 10 years, Bombardier expects to deliver 9,000 business jets worth a total of $267 billion U.S. It reported $20.1 billion U.S. of revenue in 2014. Bombardier B stock is still a buy, but only for aggressive investors. Bombardier was recently covered in The Successful Investor Hotline for May 8,…