MONTREAL

Flush with cash, Bombardier presents new path

By Ross Marowits The Canadian Press
Published Tuesday, November 24, 2015 7:07AM EST

A Global 6000 aircraft by Bombardier is shown in this photo released on Tuesday Nov. 27, 2012. Bombardier has made the biggest sale of business aircraft in its history with a deal to provide up to 142 Global aircraft to a private European luxury charter company in a transaction potentially worth up to US$7.8 billion. THE CANADIAN PRESS/HO

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MONTREAL - Armed with US$2.5 billion in new financial support, Bombardier's top executives meet with institutional investors in New York City Tuesday to outline "strategic imperatives" for the troubled Montreal-based transportation giant.

Among other things, chief executive Alain Bellemare and his team are expected to lay out a "road map" for the company's financial performance.

Each of the four division heads will then discuss their outlooks for business aircraft, commercial planes, aerostructures and transportation.

The 4 1/2-hour meeting was rescheduled from March soon after Bellemare replaced Pierre Beaudoin as CEO.

Industry analysts expect the company will present a path forward now that it has shored up its liquidity position through investments by the Quebec government and by the province' big pension fund manager.

Quebec is providing US$1 billion for a 49.5 per cent stake in bombardier's CSeries narrowbody commercial jetliner, while the Caisse de depot et placement du Quebec is investing US$1.5 billion for a 30 per cent stake in its railway division.

The federal government is also considering a request for an undisclosed further contribution.

The public funding comes as Bombardier (TSX:BBD.B) prepares to begin deliveries of its delayed and over budget CSeries commercial aircraft and develops its Global 7000/8000 business jets.

Seth Seifman of JP Morgan says cash will continue to be a key investor focus.

In a recent report, Seifman wondered whether Bombardier could generate sustainable cash flows and how will it plans to address more than US$6 billion in debt maturities that begin to come due in 2018.

The New York analyst says he's also looking for details on how the company evaluates the commercial success of key programs, especially the CSeries, along with its commitment to CRJ regional jets and Q400 turbos, both which have lost market share to Embraer and ATR respectively.

Bombardier shares, after having hit a 52-week of $4.43 last December, closed down two cents at $1.24 Monday on the Toronto Stock Exchange.