CAE gets $34 million order from Emirates airline
Nov. 14, 2011, Montreal - Emirates airline is continuing to support the rapid expansion of its fleet of large airplanes by ordering two full-flight simulators from CAE Inc. in a contract worth $34 million.
November 14, 2011 By The Canadian Press
Montreal-based CAE which announced the contract Monday at the Dubai Airshow, said it will deliver the equipment to Emirates in 2013.
CAE simulators are used to train pilots and other air crew around the world.
The Emirates order brings the number of full-flight simulators ordered from CAE so far this fiscal year to 21.
The company said it will deliver a Boeing 777 simulator to Emirates' training facility in Dubai in the first half of 2013 and an Airbus A380 simulator in the second half of 2013.
Emirates is the world's largest operator of both aircraft types.
"CAE simulators deliver the technology advantage that consistently keeps our pilot training program at peak quality,'' stated airline vice-president Adel Al Redha.
Emirates has been a CAE customer for nearly 20 years and a training centre partner for the past decade.
"We are pleased to play a key role in supporting Emirates' continued fleet and route growth,'' stated CAE civil simulation president Jeff Roberts.
Benoit Poirier of Desjardins Capital Markets said the order is positive and demonstrates the strong momentum of the civil aerospace segment.
"CAE has announced 21 full-flight simulator orders so far this year, which puts the company on track to meet its guidance of 'mid-30s' wins in fiscal year 2012,'' he wrote in a report.
Emirates is undergoing a rapid expansion by enlarging its hub at Dubai and ordering nearly 200 aircraft to its fleet of 160 that service 115 destinations in 67 countries, including Canada.
Despite concerns about military budget cuts in the United States, CAE's recently said it has high hopes for growth in its civil and military segments this fiscal year.
The company earned $38.4 million or 15 cents per share in the second quarter, in line with analyst forecasts. Revenues rose 12 per cent to $433.5 million.
The results were negatively impacted by a one-cent per share charge related to a health-care simulator acquisition.
As a result of the improved results and more positive outlook for the civil segment, CIBC World Markets analyst Michael Willemse increased his full year earnings estimate by three cents per share to 71 cents per share.
CAE employs more than 7,500 people at more than 100 sites and training locations in more than 20 countries.