A Bombardier aircraft is displayed at the Singapore Airshow at Changi Exhibition Center on Feb. 18, 2016.
Edgar Su/Reuters
Old problems are new again at Bombardier Inc.
The Montreal-based plane and train maker posted a surprise loss in its second quarter, hurt in part by higher costs in its rail business as the company continues to have trouble executing on several major legacy contracts. The industrial manufacturer also shipped 40 per cent fewer jets in the quarter as the novel coronavirus pandemic rages on.
“The next few quarters will be challenging and difficult to predict,” Bombardier chief executive officer Éric Martel said on a conference call with analysts Thursday. “It is still unclear how the pandemic will unfold and what path the economic recovery will take.”
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Mr. Martel, who joined Bombardier in April in the throes of a global health emergency, has reset plane production rates and laid off 2,500 aerospace workers as he tries to steer the company through the tail end of a dramatic reshaping that will see it sell or shut down assets that represented 65 per cent of its former revenue. Bombardier will become a pure-play maker of private business jets if things go according to plan next year.
The net loss for the quarter ended June 30 was US$223-million, or 13 cents per share, Bombardier said in a statement Thursday. Revenue plunged by 37 per cent to US$2.7-billion as the company produced and delivered fewer aircraft and less rail equipment while its factories were idle for several weeks during the COVID-19 lockdowns.
The operating loss was US$319-million, compared with a profit of US$312-million for the same quarter a year earlier. By that measure – earnings before interest, taxes, depreciation and amortization – analysts were expecting Bombardier to a report profit of US$39.3-million. The company ended the quarter with cash on hand and available credit of about US$2.4-billion.
Family-controlled Bombardier has two remaining sales to finalize and both are key to bolstering its cash position and strengthening its capital structure. One, the sale of a plane parts-making business to Spirit AeroSystems, is on track to close this fall, Bombardier said Thursday. The other, the €7.45-billion ($11.8-billion) sale of its train business to France’s Alstom SA, received European regulatory approval last week and should close in the first half of 2021, the company said.
For investors, unloading the trains business probably can’t come soon enough. Bombardier continues to struggle to execute several major rail contracts, taking an additional charge of US$435-million in the quarter related to what it called “incremental engineering, certification and retrofit costs” on several nearly complete projects that are mainly in the U.K. and Germany.
The company is one of the world’s largest makers of rail equipment and continues to win new orders to strengthen a US$33.7-billion backlog. But the business has been hamstrung in recent years by problems on a series of technically complex contracts, including deals with Germany’s Deutsche Bahn and London Overground, that have resulted in delivery delays and subsequent financial penalties from customers.
Those problems do not appear to have been resolved. Bombardier said Thursday that it mandated a new project team to conduct “deep dives into challenging legacy projects” to understand the reasons for the excessive costs. Mr. Martel said the company will hire a new senior executive, reporting to current rail boss Danny Di Perna, to help better manage resources and risk and “to ensure we regain clear visibility and control” of costs on those projects.
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There is “an urgency” for the rail business to become more predictable, Mr. Martel said on the analyst call, as he gave his view on the sources of the trouble in the train unit.
“It’s clear that we became a build and retrofit operation, either because of late issue identification, a lack of clear accountability, or because we cut engineering resources too deeply in certain areas to meet misguided account targets,” Mr. Martel said. He said the goal going forward is “to build trains right the first time.”
Bombardier’s plane business, meanwhile, is also challenged. But the issues there are industry-wide and not specific to the company, including reduced demand for new aircraft amid continuing travel restrictions and economic anxiety caused by the health pandemic.
Bombardier delivered 20 business jets in the quarter, down from 35 in the same quarter last year. While new orders came in lower than last year, they were better than the zero orders expected, and the company said its aircraft service business remained busy.
The longer term trends are encouraging, Mr. Martel said. Private jet traffic is recovering much faster than commercial aviation. Inventories of used planes, which affect the price of new aircraft, remain healthy. And new interest in private air travel among buyers is fuelling sales activity, he said.
“The business jet could eventually be a winner of the pandemic,” Mr. Martel told reporters, adding both private individuals and senior executives are looking for safer transport amid the health crisis. “It doesn’t mean they’re going to be buying a jet the next day. But they may fly and use [private fleet operators], which ultimately will translate into more volume for us.”
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An equity analyst on the call expressed his skepticism that the company could get its cash management under control.
“How can we have any confidence in the second half that it’s actually going to get better?” Bank of America Merrill Lynch’s Ronald Epstein told Bombardier management. “Because if you look back at recent history – I mean, the cash burn for you guys has been pretty astonishingly awful.”
Bombardier finance chief John Di Bert said the company is coming out of a major product investment cycle that has taken a toll on cash usage. “Our biggest challenge has been clearly releasing train inventory and finished goods to customers,” Mr. Di Bert said.
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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
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