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.
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 year.
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 members.
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.