Bombardier expects it will be able to backfill order cancellations resulting from the sanctions on activities with Russian clients. During an event at the Montreal Council on Foreign Relations last week, Bombardier president and CEO Eric Martel told reporters that the company was confident that demand was sufficient to replace the cancellations. The company confirmed that Russia represented about 5 percent of its sales.
The Canadian manufacturer announced earlier this month that it was suspending activities with Russian clients and would adhere to international sanctions.
Martel reportedly had stated that the company had about a dozen lawyers working on order cancellations spurred by the sanctions and that the most complicated issues surrounded the management of spare parts.
Separately, the company on Friday issued a statement that it was seeking authorization for a reverse stock split, consolidating Class A and Class B shares at a ratio of between 10-for-1 up to as much as 30-for-1. The exact ratio would be determined by the company’s board of directors, it said.
“This is another step in Bombardier’s journey to be a more streamlined and stronger business jet company focused on creating value for all of its stakeholders,” Martel said. “A share consolidation is a logical and beneficial step in this transformation, with the potential to provide additional trading liquidity to investors.”
