Bombardier selling CRJ program to Mitsubishi - Canadanewsmedia
Connect with us

Business

Bombardier selling CRJ program to Mitsubishi

Published

on

MONTREAL — Bombardier Inc. (BBDb.TO) announced Tuesday a deal to sell its regional jet program to Mitsubishi Heavy Industries Ltd. for US$550 million.

Bombardier chief executive Alain Bellemare said the agreement represents the completion of the transformation of the company’s aerospace business.

“With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future,” Bellemare said in a statement.

“Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”

Mitsubishi, which will also assume liabilities totalling about US$200 million, will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft.

The agreement includes the related services and support network located in Montreal and Toronto and its service centres in Bridgeport, W.Va., and Tucson, Ariz.

Mitsubishi chief executive Seiji Izumisawa said the deal is an important step towards building a strong, global aviation capability.

“In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family,” Izumisawa said.

The CRJ production facility in Mirabel, Que., will remain with Bombardier, which will also continue to supply components and spare parts.

Bombardier will assemble the current CRJ backlog on behalf of Mitsubishi with production expected to be completed in the second half of 2020.

Bombardier will also retain roughly US$400 million in liabilities representing a portion of the credit and residual value guarantees.

The deal is expected to close in the first half of next year, subject to regulatory approvals and customary closing conditions.

Let’s block ads! (Why?)

Continue Reading

Business

CPPIB posts 2.3-per-cent return in second quarter

Published

on

By

CEO Mark Machin walks through the CPPIB office in Toronto in this file photo.

By Mark Blinch

Canada Pension Plan Investment Board posted a 2.3-per-cent return in the quarter ended Sept. 30, helping it maintain double-digit long-term returns and add nearly $10-billion to its total assets.

CPPIB, the investment manager for the Canada Pension Plan, said its five-year and 10-year returns through Sept. 30 averaged 10.3 and 10.2 per cent over the period, and it closed the quarter with assets of $409.5-billion.

CPPIB posts 2.3-per-cent return in second quarter

CPPIB didn’t break out returns by asset class, but said the group that actively manages its equity investments, as well as its private-equities division, were “strong contributors.” The Active Equities department picks specific stocks with an aim to outperforming the market, while private equity is the ownership of private companies, often aided by substantial borrowing.

It received “modest gains” from its passive portfolio, a style of investing designed to match the overall market. CPPIB also said it had positive performance in other asset classes, including its bonds, aided by declining interest rates.

A little less than one-third of the fund’s assets are in stocks traded on the public markets. A quarter of the portfolio is private equity.

All return percentages are net of costs, CPPIB said. Because the CPP must serve plan members for decades to come, CPPIB says long-term results “are a more appropriate measure of CPPIB’s investment performance compared to quarterly or annual cycles.”

Canada Pension Plan, founded in 1966, is the primary retirement-security program for working Canadians. The government created CPPIB in 1999 to professionally manage the Plan’s money. The past two decades have seen a shift first from bonds to stocks, then to assets like real estate, infrastructure and private equity. The government projects the CPP Fund will grow to $545-billion in assets by 2025 and $1.5-trillion in assets by 2040.

Major deals in the quarter included buying publicly traded Pattern Energy Group Inc. for US$2.3-billion in cash, valuing the company at US$6.1-billion, including debt. It also struck a deal to merge data-information provider Refinitiv into the London Stock Exchange, valuing Refinitiv at US$27-billion.

Let’s block ads! (Why?)

Source link

Continue Reading

Business

Trade mission seeks to calm concerns about forestry downturn

Published

on

By

Forests Minister Doug Donaldson says he’s in Asia trying to calm investor concerns about reduced supplies of British Columbia timber for major residential developments and tourism-resort projects in China and Japan.

Donaldson, in a teleconference from Tokyo, says he and 35 senior executives from B.C. forest companies and associations are on a five-day trade mission to Asia that concludes Friday.

He says the Chinese and Japanese are keenly aware of the toll pine beetle infestations and massive wildfires have taken on B.C.’s forests, but business leaders and forests ministry officials are reassuring potential customers the province has abundant supplies of timber.

The Opposition Liberals recently released a document detailing ongoing forest industry struggles, listing almost 60 examples where companies have implemented cost-cutting measures that range from harvest reductions to permanent mill closures.

The detention of top Huawei executive Meng Wanzhou in Canada prompted the minister to postpone his planned participation on a forestry trade mission to China last December.

Donaldson says this week’s trade talks in Japan and China focused only on business.

Let’s block ads! (Why?)

Source link

Continue Reading

Business

Union representing SkyTrain workers considers possible strike action

Published

on

By

SkyTrain in Vancouver/Shutterstock

CUPE Local 7000, the union representing 900 SkyTrain workers, says negotiations with the BC Rapid Transit Company (SkyTrain) have reached a deadlock.

CUPE Local 7000 says that there have been more than 40 sessions at the bargaining table since the beginning of May, and that talks broke down Tuesday, Nov. 12. It says that both sides were unable to reach an agreement on several key issues.

“The Company has failed to offer fair wages or address the sick plan, inadequate staffing levels, forced overtime, and other issues important to our members,” said CUPE 7000 President Tony Rebelo.

“We have been more than proactive and flexible in trying to reach solutions to improve the service, but the employer’s latest package failed to address the key issues. They are simply not interested in bargaining seriously, so we’re left with little choice but to go to our members and seek direction for next steps.”

CUPE 7000 represents approximately 900 SkyTrain workers who provide service as SkyTrain attendants and control operators as well as administration, maintenance, and technical staff.

Vancouver Is Awesome reached out to TransLink for comment and will update the story when they have provided comment.

Let’s block ads! (Why?)

Source link

Continue Reading

Stay up to date

Subscribe for email updates

Trending