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Bombardier to shrink by half with announced sale of rail unit to France's Alstom – The Globe and Mail

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After decades of building one of the world’s largest aerospace and train businesses, Montreal’s Bombardier Inc. will shrink by half after formally announcing the sale of its rail division to France’s Alstom SA.

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The wholesale retreat from building everything from high-speed trains in China to streetcars for Toronto means that Bombardier will exist only as a maker of private business jets. But Bombardier Transportation (BT), as the train division is known, isn’t giving up all of its Canadian roots: The Caisse de dépôt et placement du Québec (CDPQ), which owns 32.5 per cent of BT, has agreed to become a significant shareholder in the enlarged Alstom.

Alstom, whose headquarters are in Paris, and Bombardier, announced the train merger late on Monday, though the deal was widely expected — Bombardier had confirmed that it was in talks to sell either its train or business jets division. The Canadian company confirmed that its business jets unit is no longer for sale.

Alstom put the price of buying 100 per cent of the train business, known as Bombardier Transportation (BT), at 5.8-billion to 6.2-billion euros, to be paid through a mix of cash and new Alstom shares. CDPQ will sell its stake in BT for about 2-billion euros and invest the proceeds, plus an additional 700-million euros, for an 18 per cent stake in the new Alstom, making it the French company’s single largest shareholder.

Bombardier CEO Alain Bellemare said the BT sale will completely transform the highly indebted company’s capital structure, giving it the financial flexibility to expand and improve the profitability of the business jets division, which faces enormous development costs as competition with big-name rivals, such as Textron and Gulfstream Aerospace, heats up. In a statement, he said the BT sale “will change the game for Bombardier.”

Bombardier said that total proceeds from the BT sale, after adjusting for certain liabilities, such as pension obligations, would be about US$6.4-billion. After deducting the CDPQ’s equity position in BT, Bombardier would end up with US$4.2-billion to US$4.5-billion in net proceeds, equivalent to about half of Bombardier’s overall debt of US$9.3-billion.

The BT sale, along with the commercial jet sales that had already been announced, will hand Bombardier between US$6.5-billion and US$7-billion in cash, “putting the company on a brand new footing” to address its hefty debt burden, Mr. Bellemare said. Bombardier said it expects its net debt to be US$2.5-billion if the transaction is completed.

Bombardier unloaded the last of its once-vast commercial aircraft business earlier this month, with an agreement to sell its remaining interest in the Airbus A220 passenger jet – the aerospace project once known as the C Series that nearly bankrupted the company – to Airbus.

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Alstom, for its part, called the BT purchase a “step-change” acquisition. Alstom had been trying some time to bulk itself up, in good part to compete with the new breed of Chinese train giants that are trying to crack the European and North American markets, where its presence is scant.

But its attempt to merge the train business of rival Siemens of Germany failed last year, when the European Union’s competition regulator, Margrethe Vestager, said the deal would make Alstom-Siemens overly dominant in high-speed trains and signaling.

In an analysts’ call on Monday, Alstom Chairman and CEO Henri Poupart-Lafarge, 50, said he expected an easier ride with European regulators this time around. “Bombardier is a relatively small player in Europe in signalling,” he said. “It will be a much simpler project than the one we had with Siemens.”

The French government threw its support behind the Alstom-BT merger. “This deal will allow Alstom to prepare for the future, against the backdrop of increasingly intense international competition,” Finance Minister Bruno Le Maire said in a statement.

If the deal is completed, the new Alstom will have an order backlog of 75-billion euros and annual revenues of 15.5-billion euros, a near doubling of its current revenues. With BT at its side, Alstom will be a big player in virtually every train-product market. Alstom said it was particularly attracted to BT’s “unique” presence in China, where it has developed high-speed trains, and strong presence in Germany and North America.

Alstom said it will open an office in Montreal, which will become the new headquarter for Alstom of the Americas.

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Stop Asking Your Interviewer Cliché Questions

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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.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • 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 moreto 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.

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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.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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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.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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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.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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