bombardier inc announces intent to sell recreational products business

Bombardier Incorporated released its annual financial results and action plan today. Included in the plan is the intent to divest itself of the Recreational Products division, which includes Ski-Doo Sea*Doo, Rotax, Bombardier ATV, Evinrude, Johnson and Bombardier Groomers.

Incoming Bombardier CEO Paul Tellier is quoted in a recent National Post article as saying "The business we're in is stability, consolidation, increased profitability, reduced costs."

The Article quotes him further saying that "Whether the revenue line goes up or down slightly at this point in time is no concern of mine. The mandate I have is to change the culture." Ostensibly he is referring to the previous regime's philosophy of increasing revenues to the tune of doubling every five years.

Where prior goals were to grow in gross receipts, the Tellier plan seems to be to increase the margin and return on investors' money.

Selling off the valuable Recreational Products division will not only infuse capital into the copany, but it will allow the company to focus more on the aerospace and transportation segments of the company, an industry Tellier is more familiar with. His resume includes heading Canadian National Railway Co. He has been on Bombardier's Board of Directors since 1997.

In response to the announcement, members of the Bombardier family have expressed their interest in participating in the buyout of the Recreational Products division as part of the investor team. Such a purchase would keep the Bombardier family involved in the company, which employs nearly 14,000 workers across the globe.

Bombardier Recreational Products posted $2.5 billion Cdn in revenues for the year ending on January 30, 2003.