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Restructuring, acquisitions nab CAE’s Q3 profit

Feb. 13, 2013, Montreal - Flight simulator builder CAE Inc. says restructuring, integration and acquisition costs contributed to a reduced net profit its fiscal third quarter.


February 13, 2013
By The Canadian Press

Montreal-based CAE, which also offers flight training services for both
military and civilian aviation clients, says net income attributable to
equity holders was $37.8 million or 15 cents per share in the three
months ended Dec. 31, down from  $45.6 million or 18 cents per share in
the comparable year-earlier period.

Revenue for the quarter was $522.1 million, up 15 per cent from $453.1 million last year.

Excluding $8.8 million in after-tax restructuring, integration and
acquisition costs this quarter, net income attributable to equity
holders was $46.6 million or 18 cents per share.

CAE was expected to earn 16 cents per share on nearly $544 million of
revenues in the third quarter, according to analysts polled by Thomson
Reuters.

"Our results for the quarter were as we anticipated, given the
integration and restructuring efforts underway in our civil and military
segments,'' president and CEO Marc Parent said in a release.

"In civil products, simulator wins in the quarter put us on track for
annual sales in the mid-30s (while) the integration of recently acquired
Oxford is progressing as planned, and we continue to expect significant
synergies in civil training as this effort is concluded,'' Parent
added.

"In military, order levels continued to reflect the delays currently
inherent to the defence market, but we had a good win rate and we remain
confident given our high level of bid activity.''

So far this fiscal year, CAE has sold 30 full-flight simulators,
including seven new devices at the end of January. The company sold 37
units in the 2012 financial last year and is expected to come in
slightly below that in the current fiscal year ending March 31.

CAE  recently announced more than $100 million in new contracts for
training devices and services to the defence forces of 15 countries.

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 had annual revenues last year exceeding $1.6 billion and
employs some 8,000 people at more than 100 sites and training locations
in more than 20 countries