Bombardier chief executive Pierre Beaudoin said Thursday that the company restructuring announced last week will make the company more agile and flexible.
It will give Beaudoin a bigger role in the day-to-day operations and will reduce overhead, he said during a conference call with analysts and reporters about Bombardier’s second-quarter results.
Bombardier is dividing into four business segments and will cut 1,800 indirect jobs across its organization as a result.
The company said last week that it was too early to say how the cuts would affect individual facilities, including the Learjet plant in Wichita.
Bombardier employs 37,000 people. That includes 12,000 indirect positions.
Beaudoin said the company is on schedule to begin deliveries of its CSeries regional jet in the second half of 2015.
Flight testing stopped two months ago because of engine problems. Testing should resume in the next several weeks, he said.
Bombardier also is moving forward with talks with Rostec in Russia about opening a Q400 turboprop manufacturing facility there, Beaudoin said.
It’s working hard to get an agreement.
If an agreement is reached, however, Bombardier will have to consider what sanctions are in place against Russia at the time, Beaudoin said.
The company is closely monitoring sanctions being imposed on Russia by the European Union, the U.S. and Canada because of the conflict in Ukraine.
Russia is not only a Bombardier customer, he said. Bombardier also has suppliers in Russia.
Other companies around the world also have customers and suppliers there, he said.
“It’s a situation we need to follow very closely,” Beaudoin said. “We are concerned about what’s going on in Russia. We are looking at the effect on our business and how to plan for different scenarios.”
Bombardier announced increases in revenue and net income for the second quarter of 2014, results that were in line with expectations, the company said.
Deliveries of business aircraft were down for the quarter, while shipments of commercial aircraft rose.
Revenue for the second quarter totaled $4.9 billion, up from $4.4 billion for the same time a year ago.
Net income, on an adjusted basis, totaled $192 million, or 10 cents per share, compared to $158 million, or 9 cents per share, a year ago.
Bombardier Aerospace delivered 62 airplanes during the quarter, compared to 57 a year ago.
It received net orders for 48 airplanes, compared to 82 for the same time a year ago.
The company noted that the Learjet 85 made its first flight in April, and flights are proceeding as expected.
Revenue for the aerospace division totaled $2.5 billion for the quarter, compared to $2.3 billion a year ago.
The division’s backlog totaled $38.1 billion as of June 30, compared to $37.3 billion as of Dec. 31.
The company delivered 38 business aircraft in the quarter, compared to 45 a year ago.
Commercial aircraft deliveries, meanwhile, totaled 23, compared to 12 a year ago. Bombardier also delivered one amphibious aircraft.
It did not break down deliveries by model.
Bombardier took 41 orders for business aircraft during the quarter and had 11 cancellations. It also took orders for 18 commercial planes.
It expects to deliver about 200 business aircraft and about 80 commercial aircraft this year.