Bombardier halts plane, rail production in Ontario and Quebec, suspends guidance
Bombardier Inc. is temporarily halting production in Canada and suspending its 2020 financial forecast due to the COVID-19 pandemic.
The company is stopping all non-essential work in the country, including aircraft and rail production in Quebec and Ontario.
Employees impacted by the shutdown will be placed on furlough, with workers as well as executives forgoing pay. Board members have agreed to forgo compensation for the remainder of the year.
Chairman Pierre Beaudoin says the company, which carries a hefty debt despite multiple asset sales over the past five years, has cut all discretionary spending and ``is pursuing additional measures to enhance liquidity.''
Bombardier is also suspending its financial guidance for the year, which had projected revenue growth to $15 billion from $13.7 billion in 2019.
The company, reduced to a single revenue stream after selling its rail division to French train giant Alstom SA last month, may face falling demand for new business jets amid the broader economic slowdown triggered by the novel coronavirus outbreak.