Bombardier executive chairman to step down as turnaround plan yields smaller losses

 
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Executive chairman Pierre Beaudoin will leave his role at the end of June (Source: Getty)

Bombardier executive chairman Pierre Beaudoin will step down at the end of next month to become non-executive chairman, the company revealed in its quarterly results today.

Losses for the first quarter narrowed as the Canadian train and plane maker continues its five-year turnaround plan. Bombardier was awarded the contract to make 66 nine-car trains for London's Crossrail, which opens later this month.

Net loss was $31m (£24.1m) in the period to 31 March, down from $138m a year ago.

Revenues were down nine per cent, at $3.6bn compared to $3.9bn in the first quarter of 2016. But underlying profits rose 88 per cent to $105m.

“We continue to gain momentum as we execute our transformation plan and begin to unleash the full value of the Bombardier portfolio,” said Alain Bellemare, Bombardier president and chief executive.

On his departure from the executive chairman role, Beaudoin said: “This change reflects the very successful transition of Bombardier’s executive leadership to Alain over the past two years.”

He added that the company “is firmly on the right path, with a very strong leadership team now in place to execute its turnaround plan and return Bombardier to long-term, sustainable growth”.

Beaudoin’s move comes after he asked the board last month to slash his pay by $1.4m, following public backlash to the pay hike. His compensation was cut to $3.8m, in line with his remuneration for 2015.

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