RE:bbd futureSo long 2020, don't let the door hit ya...Hey 2021, nice to meet ya!
Interesting comments bomb2020. They do highlight the serious challenges BBD faces.
For example, it is difficult to put pressure on suppliers when the backlog is shrinking at a rate of $3B/year. BBD started the year with a backlog of $14.4B and I suspect will end the year with a backlog of about $11.5B. Still healthy, but the drop is concerning. I think the recent news release was done in part to reassure suppliers.
If they cut prices on their planes, and/or slow production in order increase/maintain backlog, it drives down the profit margins.
It is difficult to negotiate lower interest rates if the company is making little to no profit, and it is difficult to spend on new products if all their money needs to go toward paying off debt.
It will be interesting to see how they use the Alstom proceeds. The idea of vertical integration has crossed my mind as well, whether upstream or downstream. I am not connected to the industry, so I do not know to what level vertical integration exists within it. Comments from anyone more knowledgeable would be appreciated.
HNY and GLTA
Jim
bomb2020 wrote: Hi and happy new year to everbody!
what i think bomb should do in 2021
1.work hard to reduce the production cost on all levels.
-i work for a suplier and i know for a fact that the prices that bomb is paying for parts are 10 to 25 procent higher than for boeing for example.
2. to fix the very bad micro management all around the company.
3. very fast and agresive to improve the backlog.
4. to buy some small to medium size supliers and procesors.
-even now the industry is slow the need of good supliers is stil there.
5.to cut the work force so they can have revenue for 2021 more than 420000 cad/employe
6.to have a transperancy in info.
7.to slowly start to put on the market the global 8500. as a bussines jet and as a small comercial 50 seats aircraft.
-the industry post pandemic will req.a huge flexiblity in aircrafts sizes ,clases etc.
8. to reduce depth by end of 2021 by 50% and have a profit of at least 1 bil.
Will not be easy but is very posible .
Please bomb .people start looking down to micro..Overthere is half of the majors problems that bomb has.You need to consolidate to every detail/part/proces as much is posible.
Good luck!