(RTTNews) - CAE Inc. (CAE.TO,CAE: News ), a provider of integrated training solutions and simulation equipment and services, Wednesday reported a decline in profit for the second quarter of fiscal 2010, reflecting lower revenues from civil segments, higher interest expenses and restructuring charges.

The Montreal, Canada-based company's net earnings for the second quarter declined to C$39.1 million or C$0.15 per share from C$49.2 million or C$0.19 per share in the previous year. Results for the quarter include foreign currency translation adjustments of C$71.1 million, net changes in cash flow hedge of C$16.5 million and other comprehensive losses of C$54.6 million, while the prior year quarter included a loss of C$15.2 million.

Total comprehensive loss for the quarter was C$15.5 million, compared to a restated comprehensive income of C$33.2 million a year ago.

Revenue for the quarter declined to C$364.5 million from C$406.7 million last year.

In civil segments, Training & Services revenue were C$102.8 million, down 5% from a year ago due to softer market conditions in North America and Europe. Revenue from Simulation Products declined 44% to C$63.9 million from last year mainly because of an extended facility shutdown of three weeks in July and furlough days along with lower orders for volumes.

In military segments, Simulation Products revenue rose 13% to C$24.3 million from last year due to the higher program activity and more investment tax credits. Training & Services revenue was C$60.4 million, up 3% year over year as a result of more work on maintenance service contracts in Canada and Germany and increased NH90 helicopter training activity in Germany.
Interest expense for the quarter rose to C$7.4 million from C$5.2 million a year ago. The company reported restructuring charges of C$1.1 million for the second quarter.

At the end of the second quarter of fiscal 2010, the company reported a total backlog of C$3.03 billion, compared to C$2.74 billion last year.

The company noted that its military segment won orders of C$178.4 million during the quarter including major upgrade work for two German CH-53 full-mission simulators and a range of A330 Multi-Role Tanker Transport trainers for the United Arab Emirates and the Royal Saudi Air Force.

In civil segments, the company secured training and services contracts with an expected value of C$82.9 million. The company was also awarded C$26.8 million in contracts including two full-flight simulators from Kenya Airways and Korean Air.

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