Bombardiercuts finalist list to six

Bombardier has narrowed the list of potential bidders to six finalists, according to company officials, and the Bombardier family and its team of partners remain involved involved in the race for the purchase of the firm’s Recreational Products division. The bidders were not identified.
“All in all, the sale process is progressing on schedule as planned,” Roch Lambert, vice president and general manager of the division wrote to employees in May. “We still expect an announcement on the ultimate buyer in July, assuming we stay on schedule.”
Meanwhile, the company announced that the Recreational Products division reported a C$1.4 million loss for the three months ended April 30, although it said that was the result of a change in accounting methods related to end-of-season discounts on Ski-Doo snowmobiles, according to President and CEO Paul Tellier.
The recreational products division reported a loss because Bombardier incurred between C$18 million and C$20 million in expenses related to the end-of-season snowmobile price discounts. In the past, Bombardier would have spread that cost over its entire fiscal year, but since the Recreational Products division will be sold relatively soon, the entire expense was recognized during the quarter, Tellier said.
The C$1.4 million loss compares with a C$17.9 million net profit earned by the recreational products division during the same portion of 2002. Had Bombardier spread the cost of the snowmobile discounts over its entire fiscal year, then the Recreational Products division would have reported a net profit in the C$18 million range for the quarter, Tellier said.

Leave a Reply

Your email address will not be published. Required fields are marked *