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CAE profit halved as restructuring progresses

In this April 21, 2010 file photo, Marc Parent, president and CEO of CAE Inc., poses inside of flight simulator 737.

Christinne Muschi/The Globe and Mail

CAE Inc.'s first-quarter profit was cut in half to $21.3-million, as the company absorbed a major acquisition in its civil business unit and sales at its military division dropped from a year ago.

CAE's profit amounted to eight cents per share, down from 17 cents per share or $43.5-million a year earlier.

Nevertheless, the company said its quarterly dividend will be increased by 25 per cent to five cents a share starting with the September payout, reflecting CAE's confidence that its restructuring efforts will pay off.

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The Montreal-based company's revenue rose to $480.1-million from $427.9-million.

That was partially offset by $32-million in restructuring and acquisition-related costs, including about $21-million for severance payments during the quarter ended June 30.

The company has been integrating Oxford Aviation, an airline pilot training company that CAE acquired in a $314-million deal announced in May.

CAE manufacturers flight simulators and provides training services for commercial airline pilots. It also provides a range of training and simulation equipment for military customers around the world.

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