CAE’s second quarter profits fall slightly
Nov. 10, 2011, Montreal - Flight training provider CAE Inc. reported Thursday a second-quarter profit of $38.4 million, down from a year-ago $39.1 million as it booked business acquisition and integration charges during the period.
By Carey Fredericks
The Montreal-based company, which runs flight schools and develops
simulation technology, said its earnings amounted to 15 cents per share,
unchanged from the year-ago quarter.
Stripping out an after-tax charge of $2.7 million and related to
acquisitions, CAE said its earning would have come in at $41.1 million
or 16 cents per share. Revenues rose 12 per cent to $433.5 million.
"Demand for our civil aviation training products and services was strong
in all regions this quarter and we signed a number of key contracts in
defence, adding to our healthy $3.6-billion backlog," president and CEO
Marc Parent said in a statement.
"This quarter also marked a turning point in the development of our new
core markets segment, which is now on track to generate over $120
million of revenue next fiscal year and to become profitable."
Operating profits, earnings generated by CAE's underlying businesses, were $72.3 million after adjustments.
CAE was expected to earn 15 cents per share on $435 million of revenues
in the second quarter, according to analysts polled by Thomson Reuters.
The Montreal-based company has suggested that its military segment
revenues will grow by low single digits this fiscal year. It has sold 19
full flight simulators in the first half of the fiscal year, putting it
on track to meet its guidance for "a few more than 30" orders for the
CAE's health-care simulation segment remains small, but is expected to take advantage of attractive growth opportunities.
Founded in 1947, it has 32 civil aviation, military and helicopter
training centres around the world and trains more than 80,000 crew
The company has annual revenues exceeding $1.6 billion and employs more
than 7,500 people at more than 100 sites and training locations in more
than 20 countries.