• 15 February 2018

C-100 Bombardier jetImage copyright
Bombardier

Image caption

The CS100, one of Bombardier’s C-Series jets at the centre of the trade row

Bombardier, the train and plane manufacturer at the centre of a trade row between the US the UK and Canada has seen a 57% rise in profits.

The US Commercial department had threatened to impose 292% tariffs on its C-Series aircraft which employs some 4,000 workers in Belfast.

But the US International Trade Commission (ITC) rejected the complaint which had been made by Boeing.

Now, Bombardier says it is moving “into a strong growth cycle”.

Bombardier’s earnings before interest and tax for the whole of last year rose from $427m (£304m) to $672m driven by rising sales and profits in its rail division.

Loses at its commercial aircraft division fell from $417m to $377m and profits at its business aircraft division rose 13%.

The US plane maker Boeing had originally complained that the C-Series had been sold to US airline Delta at “absurdly low prices”, made possible by unfair subsidies to Bombardier from the British and Canadian governments.

The company is Northern Ireland’s biggest employer. Heavy investment in the C-Series had already pushed Bombardier to the brink of bankruptcy in 2015 and the threat of tariffs looked likely to push it over the edge.

Following the original complaint, the European plane maker Airbus bought a 51% stake in the C-Series project for just $1 and Bombardier agreed to set up a final assembly line in Mobile, Alabama.

Image copyright
Getty Images

Image caption

The threat of tariffs on Bombardier jets threatened 4,000 jobs in Northern Ireland

Ruling

The ITC ruling, announced in January, was published on Thursday. It said that Bombardier’s C- Series jets ordered by Delta did not compete with any of Boeing’s planes and the sale did not come at Delta’s expense.

“Boeing lost no sales or revenues,” the ITC said in its 194-page ruling.

Bombardier is also in the middle of a five-year turnaround plan. Chief Executive Officer Alain Bellemare said: “2018 will be a pivotal year for Bombardier. We are moving out of our investment cycle and into a strong growth cycle.”

“Because of this solid performance, we begin 2018 with great momentum. Our operational transformation is in full motion.”

Source by BBC

LEAVE A REPLY

Please enter your comment!
Please enter your name here