CAE foresees ‘major disruptions’ this quarter, with ‘a tale of two halves’ in 2020

MONTREAL — Flight simulator maker CAE Inc. says profits fell six per cent last quarter due to the impact of the COVID-19 pandemic.

The fourth quarter — usually CAE’s strongest — saw net income drop to $318.9 million from $340.1 million a year earlier.

CAE reports revenue slipped four per cent to $977.3 million in the quarter ended March 31 from $1.02 billion in 2019.

Earnings per share hit 46 cents, matching last year’s figure and beating analyst expectations of 41 cents per share, according to financial markets data firm Refinitiv.

The Montreal-based company says it has seen “a material disruption to operations” as the pandemic continues to pummel the travel industry, with most carriers imposing a pilot hiring freeze.

CAE chief executive Marc Parent says he believes 2020 “will be a tale of two halves,” with the first marked by more “major disruptions” for the firm amid plunging demand and the second  “slightly more positive” as travel restrictions begin to ease.

For the full year, CAE saw net income fall six per cent to $318.9 million while revenue rose 10 per cent to $3.62 billion.

This report by The Canadian Press was first published May 22, 2020.

Companies in this story: (TSX:CAE)

The Canadian Press