CAE more than doubles Q1 profit
Aug. 8, 2013, Montreal - CAE slightly missed analyst profit expectations
even though its net profit more than doubled to $45.6 million in the first
quarter of its fiscal year on a 15 per cent growth in revenues
primarily due to the strength of its civil simulator and flight training
August 8, 2013 By The Canadian Press
The Montreal-based company earned 18 cents per share attributable to
shareholders for the three months ended June 30. That compared to eight cents per share or $21.5 million a year earlier.
one-time tax benefits and severance costs, its adjusted profit was
$31.8 million or 15 cents per share, compared to $46.9 million or 18
cents per share in the prior year.
Revenues for the quarter were $530.4 million, up from $462.2 million last year
adjusted profits were expected to slip one cent to 17 cents per share
on $525.4 million of revenue, according to analysts polled by Thomson
Chief executive Marc Parent said the company maintained
its market leadership with strong full-flight civil simulator sales and
higher military orders than last year.
"In civil, despite
disappointing margin performance this quarter, 23 full-flight simulator
sales fiscal year to date give us a strong start and we expect to reach a
record of 40 units by March 31,'' he said in a statement.
Thursday, CAE announced a contract for eight simulators, flight training
devices and a 15-year maintenance and service agreement with an
undisclosed customer. The contract signed in CAE's second quarter is
worth about $210 million at list prices.
Revenue from its civil
segments increased 27 per cent to $301.8 million, but segment operating
incomes fell to $37.6 million from $46.9 million last year.
company also said it was chosen to train U.S. Air Force crews to operate
Predator and Reaper remotely piloted aircraft, commonly called drones.
The initial one-year services contract is for US$20 million and could be
worth up to US$100 million if extended to the maximum.
contract – originally announced by the U.S. Defence Department on July
30 – was one of several disclosed by the company ahead of its annual
meeting of shareholders and a conference call with analysts.
also said it has been awarded a contract worth an undisclosed amount to
provide three mission training simulators for the Royal Australian Air
It signed an agreement in June with Lockheed Martin, the
U.S. manufacturer of the F-35 fighter jet, to deliver training system
support and services in Canada even though the federal government has
yet to decide whether it's replacing the existing fleet of CF-18s.
During the first quarter, CAE's military revenues increased by one per cent to reach $198.8 million.
Parent said the orders demonstrate "our resiliency in a challenging defence budget environment.''
core markets for health and mining simulator products earned $1.6
million on $29.8 million of revenues, up from $700,000 on $26.1 million
of sales last year.
The company employs about 8,000 people at more than 100 sites and training locations in approximately 30 countries.