CAE raises earnings forecast even as profits fall

Detailed summary

Company remains focused on continuing year-old transformation plan, CEO Matthew Bromberg says

CAE Inc. CAE-T says it is raising its earnings outlook for the fiscal year despite a fall in profits.

The flight simulator maker says it is increasing its adjusted earnings forecast to between $1.28 and $1.35 per share, up from between $1.21 to $1.28 per share previously.

For the three months ended Sept. 30, the Montreal-based company says net income attributable to shareholders dropped 20.7 per cent to $58.6-million from $73.9-million in the same period a year earlier.

It says its second-quarter revenues slipped 2.6 per cent year-over-year to $1.20-billion from $1.24-billion.

On an adjusted basis, CAE says its earnings rose to 33 cents per share from 28 cents per share the year before.

CEO Matthew Bromberg says the company remains focused on continuing its year-old transformation plan, which aims to drastically reduce the manufacturer’s global footprint by the end of the year.

Opening of the article, excerpted from The Globe and Mail (Report on Business). To read the rest, open the article on the publisher's site.