Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }
Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub

CAE fourth quarter results were announced Friday.

Graham Hughes/The Canadian Press

Flight simulator maker CAE Inc. saw profits fall six per cent last quarter due to the impact of the COVID-19 pandemic – and the turbulence isn’t over.

“As we look to the fiscal year ahead, we believe it will be a tale of two halves, with the first half of the year marked by sharply lower demand and major disruptions to our operations, and the second half slightly more positive as markets potentially begin to reopen and travel restrictions ease,” chief executive Mark Parent said in a release Friday.

The concerns follow “a material disruption” to the firm in the quarter ended March 31 as the pandemic continues to pummel the aviation industry amid border shutdowns and plunging demand, with most carriers imposing a pilot hiring freeze and broader cost reduction schemes.

Story continues below advertisement

The virus has hit the Montreal-based company’s civil aviation training business particularly hard. CAE kicked off its fiscal year last month with about one-third of its training centres around the globe closed and production at its main manufacturing facility in Montreal suspended.

The outbreak has also prompted delays in executing defence programs, CAE said.

Like many manufacturers forced to halt regular operations over the past two months, CAE pivoted to health care, assigning 500 employees to make 10,000 ventilators on a contract with the federal government. The product is in the final stages of certification by health authorities, CAE said.

Financial results last quarter were “solid” but the outlook is “weaker than expected,” said Desjardins Securities analyst Benoit Poirier.

The fourth quarter – usually CAE’s strongest – saw net income drop to $318.9 million from $340.1 million a year earlier.

Revenue slipped four per cent year over year to $977.3 million from $1.02 billion, the company said.

Earnings per share hit 46 cents, matching last year’s figure and beating analyst expectations of 41 cents per share, according to financial markets data firm Refinitiv.

Story continues below advertisement

While revenue from CAE’s civil aviation training business remained fairly flat at $601.9 million, its defence and security segment managed a 12 per cent revenue boost to $341.8 million.

For the full year, CAE saw net income fall six per cent to $318.9 million while revenue rose 10 per cent to $3.62 billion.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Follow related topics

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies