Executive Business Briefing

Here is a look at more of Friday's top business stories:

Bombardier cuts almost 2,000 jobs

MONTREAL, Sept. 27 (UPI) -- Bombardier said it will slash nearly 2,000 jobs at its aerospace division in an attempt to reduce its debt by $5 billion.

The world's third-largest maker of civilian aircraft said 1,980 employees, including 20 percent of management, will be laid off at Bombardier Aerospace facilities in Canada, the United States and the United Kingdom, beginning in October.

In addition, Bombardier said it will temporarily cutback production of some of its aircraft programs at its sites in Belfast, Montreal, Toronto and Wichita.

The company said in Belfast, business aircraft component manufacturing will be affected. In Montreal, production of the Bombardier Challenger 604 business jet will be reduced over a four-month period and in Toronto, all manufacturing work will be interrupted for six to eight weeks, beginning in late November, impacting the Bombardier Q Series turboprop aircraft and the Bombardier Global family of business aircraft production lines.

Some 1,600 employees will be affected during this period.

In Wichita, the company said production of the Bombardier Learjet 45 and Learjet 60 will be interrupted for a period of four months beginning in December, affecting some 500 employees.

The Bombardier Challenger 300 and Bombardier Learjet 40 development programs and entry-into-service schedules are not impacted by these measures.

Bombardier also announced measures to reduce the debt of Bombardier Capital, to align its aerospace cost structure to the business aircraft market and, as a result, to increase its financial flexibility to face the current uncertain economic environment.

Bombardier said it intends to reduce Bombardier Capital's assets under management by approximately $5 billion, mainly through the sale and gradual wind-down of the receivable factoring portfolios for Bombardier's manufacturing sectors, as well as the business aircraft financing portfolios.

Bombardier Capital will concentrate on inventory finance, railcar leasing and interim financing for Bombardier Aerospace regional aircraft.

Proceeds from the sale and gradual wind-down of the receivable factoring and business aircraft financing portfolios will be applied to the reduction of Bombardier Capital's debt.

The company said the transactions will be conducted in an orderly fashion and will be spread over a period of several months.

Robert E. Brown, president and chief executive officer, said, "The measures we have put in place today, once they are carried out, will enhance Bombardier's financial flexibility in the context of the uncertainties of this unpredictable economic environment."

Varian Semiconductor cuts outlook and jobs

GLOUCESTER, Mass., Sept. 27 (UPI) -- Varian Semiconductor Equipment Associates Inc. said its quarterly earnings will fall short of Wall Street estimates and it plans to cut its work force by 15 percent.

Varian said it now expects revenue for its fiscal fourth quarter ending this month to be within a range of $85 million to $105 million, with earnings at about the break-even level.

Analysts on Wall Street had been expecting the company to report a net income of 5 cents a share, according to Thomson First Call.

Varian said it also expects to record a restructuring charge of $3.4 million associated with cutting its work force by 15 percent to about 1,370.

The restructuring actions are expected to reduce its break-even revenue level to about $82 million, it said.

Ernest L. Godshalk, president and chief operating officer, said, "Varian Semiconductor's business fundamentals and market position remain sound.

"However, we believe that the pace of recovery is slowing and that semiconductor unit volumes, which drive demand for our products, are uncertain. Accordingly, we are adjusting our business infrastructure to meet the changing dynamics of the equipment industry focusing on continued cycle time reduction to be more responsive to rapidly changing customer demand," Godshalk said.

Robert J. Halliday, chief financial officer, said, "Despite volatility in the marketplace, revenue for our September quarter is still expected to range between $85 and $105 million and we should be approximately breakeven in the quarter. As a result of these actions, included in the results will be a restructuring charge of approximately $3.4 million."

The company will release its results on Oct. 24.

Children's Place sees lower results

SECAUCUS, N.J., Sept. 27 (UPI) -- Children's Place Retail Stores Inc. warned that its earnings will fall short of Wall Street forecasts in the second half.

Children's Place, which operates about 615 stores, said it now expects to post break-even third quarter results.

If third quarter trends continue, earnings in the fourth quarter will be "only slightly positive," the company said.

Analysts on Wall Street expected the company to post a net income of 57 cents a share in the third quarter and 72 cents in the fourth quarter, according to Thomson First Call.

Children's Place said sales "fell off dramatically" in September, citing over-assortment and over-design of its fall merchandise. The situation was worsened by late deliveries and low inventories, as well as unseasonably warm weather and continued declines in mall traffic, it said.

Ezra Dabah, chairman and chief executive officer, said, "While our latest Fall line had initial positive customer response, sales fell off dramatically in September. We believe this was due to over-assortment and over-design of our merchandise, particularly in our girls department.

"This situation was further compounded by late deliveries and low inventories, especially of our '2for' items, creating an inability to sustain their sales momentum. Additionally, several significant external factors affected our business, particularly the unseasonably warm weather, continued declines in mall traffic, and the overall weakness in the economy," Dabah added.