CAE Inc. seeing improvement despite Q3 profits being cut in half from year ago
According to Marc Parent, CAE's recovery from the global pandemic is highly dependent on the timing and extent that travel restrictions are lifted.
CAE Inc. says its results are improving despite reporting that net profits were cut in half in the third quarter from a year ago as it continues to manage through a challenging time for the aerospace sector.
The simulator maker and training company says its profit attributable to equity holders was $48.8 million or 18 cents per share, compared with a profit of $97.7 million or 37 cents per share a year earlier.
The quarterly results are an improvement from the two cents per share loss in the second quarter.
Revenue totalled $832.4 million for quarter ended Dec. 31, down 10 per cent from $923.5 million in its third quarter last year but up 18 per cent from the second quarter.
CAE says its net income before specific items for the quarter amounted to $60 million or 22 cents per share for the quarter, down from $99.4 million or 37 cents per share in the same quarter last year.
The Montreal-based company was expected to report 17 cents per share in adjusted earnings on $818.7 million in revenues, according to financial data firm Refinitiv.
“We are managing well through a challenging period and making important progress to significantly enhance CAE’s position for future growth,” said CEO Marc Parent.
He added that CAE’s recovery from the global pandemic is highly dependent on the timing and extent that travel restrictions and quarantines are lifted.
“Looking beyond, given our recent investments and future potential opportunities to deploy growth capital, we are confident CAE will emerge from this period in a position of even greater strength.”