Canadian aviation-training and simulation products provider CAE, Inc. (CAE,CAE.TO) reported Wednesday a higher fourth-quarter profit, helped by a 9 percent growth in revenues.
Marc Parent, president and chief executive officer of the company said, "CAE achieved a solid performance in the fourth quarter and full-year, laying the foundation for our future growth...Our strong cash flow, record order backlog, solid pipeline of opportunities, and recent acquisition of Oxford Aviation Academy give us confidence in CAE's continued success."
Last Wednesday, CAE completed the acquisition of Oxford Aviation Academy, an industry-leading provider of aviation training and crew sourcing services, for a total consideration of C$134 million, which is expected to be accretive to earnings from fiscal year 2014.
Revenue for combined Civil segments in the recent quarter increased 9 percent from last year and revenue for combined Military segments was up 4 percent from a year ago. Revenues from New Core Markets increased 118 percent from the preceding year.
In the fourth quarter, the company's net income attributable to equity holders improved to C$53.2 million or C$0.21 per share from C$45.5 million or C$0.18 per share last year.
On average, 15 analysts polled by Thomson Reuters expected earnings of C$0.20 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the quarter grew 9 percent to C$506.7 million, but was below analysts' consensus estimate of C$508.21 million.
For fiscal 2012, net income attributable to equity holders rose to C$180.3 million or C$0.70 per share from C$160.3 million or C$0.62 per share in the prior year. Annual revenues grew 12 percent to C$1.82 billion.
Backlog at the end of the fiscal was C$3.72 billion, up from C$3.45 billion in the preceding year.
The company noted that its annual capital expenditures totaled C$165.7 million, including C$116.8 million for growth initiatives and the balance for maintenance.
CAE also said it will pay a dividend of C$0.04 per share on June 29, 2012 to shareholders of record on June 15, 2012.
Separately, CAE announced the appointment of Gene Colabatistto as its new Group President, Military Simulation Products, Training and Services, replacing Martin Gagne who has decided to retire after 16 years of service with the company. Gagne has agreed to stay on as a consultant in order to ensure a smooth transition and support a number of key strategic initiatives.
CAE is currently trading at $10.04, down 0.01 percent on the NYSE.
On the Toronto Stock Exchange, CAE shares are trading lower 0.39 percent at C$10.27.
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