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Hans Silvani works on a simulator at CAE Inc., in Montreal, Quebec, April 21, 2010. (Christinne Muschi/Christinne Muschi for The Globe and Mail)
Hans Silvani works on a simulator at CAE Inc., in Montreal, Quebec, April 21, 2010. (Christinne Muschi/Christinne Muschi for The Globe and Mail)

CAE profit climbs 18% Add to ...

CAE says third-quarter net income grew 18 per cent as it saw a spike in demand from both its civil and defence customers.

The Montreal-based aerospace company says it earned $45.6-million, or 18 cents per share in its third quarter.

That compares to $38.5-million, or 15 cents per share in the same period of 2010.

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Revenue grew 10 per cent to $453.1-million.

CAE was expected to earn 17 cents per share in adjusted profits on $468-million of revenues in the third 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.

With the $100-million in orders announced in mid-January, Michael Willemse of CIBC World Markets estimated that CAE has generated about $440 million in new military order activity since the beginning of the fiscal year.

It has sold 19 full flight simulators in the first half of the fiscal year, putting it on track to meet and potentially exceed 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 had annual revenues last year exceeding $1.6-billion and employs more than 7,500 people at more than 100 sites and training locations in more than 20 countries.

“We are pleased with our financial performance this quarter with stronger margins in both our civil and defence business units,” said Marc Parent, CAE's president and CEO.

“The level of civil aviation market activity remains high in all regions and our order intake reflects our strong competitive position. Although procurement delays in defence continue to make predicting the timing of orders a challenge, we won contracts with key defence customers during the quarter.”

 

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