RE:RE:Just read the statements of full yearEventually they could consider opening a new assembly plant in the U.S. or modify the Lear jet assembly plant if the backlog justifies it, and if the Quebec and Ontario plants can’t suffice for the task.
E.M. said they could lose some sales if the new luxury tax Ottawa wants to adopt comes to pass.
One way to bypass this inconvenient and expensive tax would be for a future owner of Global or Challenger that can’t justify buying the aircraft for business purposes, to buy it from the American side.
quote=clubhouse19]Thanks for the opinion on the statements.
As to St laurent
I don't know how condusive that plant is with their plans going forward, but knowing the value of that property and how close it is to Trudeau airport, there is plenty of equity there on a real-estate level and I would they they would think hard before wanting to hold onto it .
BBDB859 wrote: One metric that I'll be keeping an eye is Operating Expenses.
All of 2021 was roughly $350M. All of 2020 was $420
Let's see what next year will be like. This is important in a lot of ways. It tell us how effecient a company is. If they hire too many freeloaders doing nothing? Than our payroll goes up, and our margins go down. Of course there are other expenses involved in SG&A, like rents, sales costs, taxes, advertising, etc.. But the main component here is Salaries for both Production & Management employees.
I can't rely on 2020 Financial figures, but they only had a $70 M reduction year over year in SG&A. It's hard to know where the savings came from. But I'd like to see the SG&A closer to $300M yearly because this company traditionally gives money away to Employment. Although these are highly skilled jobs. I still believe they can tighten the ship in 2023 when Pearson is built. 13,000 Employees maybe a little high compared to their pears producing 120 planes yearly. IMHO. They can reach that production, with closer to 10,000 employees like some of their pears.
Don't get me wrong. I fully believe in paying people well. But this company was notorious for INEFFICIENCY. This may still be a transition period for them, both on labour & PP&E because they are still going to raise production in 2023. But the Pearson plant will provide a lot of that effeciency without the labour intensiveness. It's getting interesting. I have a lot confidence in bot EM & BD to look at all these areas of production to create efficiencies. They also have to deal with Saint-Laurent for capacity. I would suggest that, they hold on to Saint-Laurant for a while till they know what their needs for Business Jets production, will really be, in the next couple of years. It's not easy to find land, and existing Facilities when you need them. I don't know how efficient or inefficient the Saint-Laurant Plant is? But I still believe they can Renovate faster (1 year), than to pay a company $600M (Pearson) to start from scratch on constructing a facility.
Having said the above. Again I'm proud of the team, and looking forward to the progress in 2022.They will surprise a lot of people (Investors, Funds etc.) financially. I'm certainly surprised, that they made it to this point so fast. They're (EM/BD) working hard and the improvements are evident. GL to real Bomber believers
[/quote]