Bombardier Report
Analysis of Bombardier:
Bombardier took on its present form in 1976 when MLW-Worthington, a
manufacturer of locomotives, acquired Bombardier Ltd., a manufacturer of snow
tractors and snowmobiles. The company was renamed Bombardier Inc. in 1978. The
company has been active ever since in the acquisitions of various aerospace and
transportation companies around the world.
Nature of the Business
Bombardier conducts business in five main areas: transportation
equipment, aerospace, defense, motorized consumer products, and in financial and
real estate services. The total revenues increased by 20% from $5.9 billion to
$7.1 billion over the last year.
To be able to see the extent of Bombardier's operations it is best to
look at each manufacturing group separately.
Aerospace
Aerospace is Bombardier's most important industry. It accounted for 47%
of sales and 33% of profit in 1995 and makes Bombardier the fourth largest
civilian airplane manufacturer in the world. Bombardier's customers are spread
out over the globe. They range from government and private commercial airlines
to wealthy individuals and corporations in need of private jets. The products
that are driving the growth in this division are the RJ, the Global Express, and
the Lear-45. De Havilland, which was recently purchased with help from the
Ontario government, produces the Dash-8 series of airplanes. The Dash-8 has had
its production rate increased to 48 planes a year with about 81 on order.
Modified versions of the Dash-8 are in the works that could enable an even
bigger increase in production. Bombardier has cut costs and increased the
profit margin ...