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Bombardier to lay off 1,600, halt Learjet production

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(Reuters) – Bombardier Inc said on Thursday it would halt Learjet aircraft production and slash about 1,600 jobs this year as it becomes a pure-play business jet maker, after reporting an adjusted loss before interest and taxes for the fourth quarter due to the coronavirus pandemic.

After flagging likely layoffs in November, Montreal-based Bombardier announced further cost-cutting efforts to generate $400 million in recurring savings by 2023 and improve earnings this year while increasing its aftermarket business.

“We view 2021 as a transition year,” Chief Executive Éric Martel told analysts.

The layoffs include 800 people in Canada, mostly in Quebec, and 250 in Wichita where Learjet is made, Martel later told reporters.

Bombardier, which had previously planned to break even on free cash flow in 2020, now expects to turn cash flow-positive between 2021 and 2023.

The company’s shares were down 11% to C$0.65 per share in midday Toronto trading.

Bombardier has shed assets in recent years, transforming itself from plane and train maker to business jet manufacturer, to restore profitability and cut debt after facing a cash crunch in 2015.

In 2021, the company expects business jet deliveries in line with 2020, modest revenue growth, and adjusted EBITDA of more than $500 million, as it winds down production of the low-selling Learjet later in the year to focus on more profitable Challenger and Global jet models.

Analysts on average estimated 2021 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be $661.3 million, according to Refinitiv IBES data.

Ahead of its March 4 investor day, Bombardier cited cost improvements on the Global 7500 jet and its growing service business as key earnings drivers.

Bombardier reported a 19.7% fall in business jet deliveries to 114 in 2020, in line with industry trends. But 2020 revenues from corporate aircraft activities rose 3%, helped by year-end deliveries of Global 7500 jets and a rebound in demand.

Bombardier reported 2020 free cash-flow usage from continuing operations of $1.9 billion, but expects to reduce cash burn in 2021 to better than $500 million.

The company said it now has pro forma cash and cash equivalents of about $5.4 billion, including proceeds from the sale of its transportation unit, and a pro forma net debt of about $4.7 billion.

Bombardier reported an adjusted loss before interest and taxes of $165 million for the quarter ended Dec. 31, compared with a profit of $168 million a year earlier.

 

(Reporting by Shreyasee Raj in Bengaluru and Allison Lampert in Montreal; Editing by Alexandra Hudson, Jonathan Oatis and Bernadette Baum)

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Potato wart: Appeal Court rejects P.E.I. Potato Board’s bid to overturn ruling

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OTTAWA – The Federal Court of Appeal has dismissed a bid by the Prince Edward Island Potato Board to overturn a 2021 decision by the federal agriculture minister to declare the entire province as “a place infested with potato wart.”

That order prohibited the export of seed potatoes from the Island to prevent the spread of the soil-borne fungus, which deforms potatoes and makes them impossible to sell.

The board had argued in Federal Court that the decision was unreasonable because there was insufficient evidence to establish that P.E.I. was infested with the fungus.

In April 2023, the Federal Court dismissed the board’s application for a judicial review, saying the order was reasonable because the Canadian Food Inspection Agency said regulatory measures had failed to prevent the transmission of potato wart to unregulated fields.

On Tuesday, the Appeal Court dismissed the board’s appeal, saying the lower court had selected the correct reasonableness standard to review the minister’s order.

As well, it found the lower court was correct in accepting the minister’s view that the province was “infested” because the department had detected potato wart on 35 occasions in P.E.I.’s three counties since 2000.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.



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About 10 per cent of N.B. students not immunized against measles, as outbreak grows

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FREDERICTON – New Brunswick health officials are urging parents to get their children vaccinated against measles after the number of cases of the disease in a recent outbreak has more than doubled since Friday.

Sean Hatchard, spokesman for the Health Department, says measles cases in the Fredericton and the upper Saint John River Valley area have risen from five on Friday to 12 as of Tuesday morning.

Hatchard says other suspected cases are under investigation, but he did not say how and where the outbreak of the disease began.

He says data from the 2023-24 school year show that about 10 per cent of students were not completely immunized against the disease.

In response to the outbreak, Horizon Health Network is hosting measles vaccine clinics on Wednesday and Friday.

The measles virus is transmitted through the air or by direct contact with nasal or throat secretions of an infected person, and can be more severe in adults and infants.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.



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Trump snaps at reporter when asked about abortion: ‘Stop talking about it’

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PALM BEACH, Fla. (AP) — Donald Trump is refusing to say how he voted on Florida’s abortion measure — and getting testy about it.

The former president was asked twice after casting his ballot in Palm Beach, Florida, on Tuesday about a question that the state’s voters are considering. If approved, it would prevent state lawmakers from passing any law that penalizes, prohibits, delays or restricts abortion until fetal viability — which doctors say is sometime after 21 weeks.

If it’s rejected, the state’s restrictive six-week abortion law would stand.

The first time he was asked, Trump avoided answering. He said instead of the issue that he did “a great job bringing it back to the states.” That was a reference to the former president having appointed three conservative justices to the U.S. Supreme Court who helped overturn the landmark Roe v. Wade decision in 2022.

Pressed a second time, Trump snapped at a reporter, saying “you should stop talking about it.”

Trump had previously indicated that he would back the measure — but then changed his mind and said he would vote against it.

In August, Trump said he thought Florida’s ban was a mistake, saying on Fox News Channel, “I think six weeks, you need more time.” But then he said, “at the same time, the Democrats are radical” while repeating false claims he has frequently made about late-term abortions.

In addition to Florida, voters in eight other states are deciding whether their state constitutions should guarantee a right to abortion, weighing ballot measures that are expected to spur turnout for a range of crucial races.

Passing certain amendments in Arizona, Missouri, Nebraska and South Dakota likely would lead to undoing bans or restrictions that currently block varying levels of abortion access to more than 7 million women of childbearing age who live in those states.

The Canadian Press. All rights reserved.

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