Bombardier Report

Essay by Anonymous UserUniversity, Bachelor'sA+, December 1996

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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 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 at de Havilland to improve profitability. Bombardier will likely exercise the option to buy the remaining 49% from the Ontario government. The outlook for the success of the RJ is very good, although most of its sales rely on a small number of companies, these companies...