Newspaper article The Canadian Press

CAE Allays Investor Fears about Military Division with $400M Orders in Q4: CAE Signals Military Order Strength

Newspaper article The Canadian Press

CAE Allays Investor Fears about Military Division with $400M Orders in Q4: CAE Signals Military Order Strength

Article excerpt

MONTREAL - Flight simulator and training company CAE signalled Monday that it isn't yet being hurt by military budget cuts after it won more than $950 million worth of orders last fiscal year, including record sales to the United States.

The Montreal-based company (TSX:CAE) said nearly half of the sales were in the fourth quarter, putting it on track to beat last year's sales.

Among the orders was $170 million of training and services contracts from Brunei.

CAE said it will provide Brunei's military with training for several models of helicopter, including the Sikorsky S-70i Black Hawk, through a joint venture. CAE will own 60 per cent of the joint venture and Brunei will own 40 per cent.

"The CAE Brunei Multi-Purpose Training Centre will undoubtedly become a training centre of excellence for the entire Southeast Asia region," said Martin Gagne, CAE's group president for military products, training and services.

The Brunei orders brought the total value of military orders received by the simulator giant during its fourth quarter to more than $400 million.

"We are pleased to have completed the year with a strong order intake, which demonstrates the uniqueness of CAE's defence business and solid pipeline of opportunities in both established and emerging markets," Gagne said.

"We remain encouraged by the continued investment in simulation-based training by our defence customers as they seek ways to maintain readiness at a lower cost."

CAE makes a variety of training equipment for the military and civil aviation markets. It's perhaps best known as the world's leading supplier of flight simulators for training airline pilots and cockpit crews.

According to previously announced figures, CAE's military business had $630.2 million of revenue in the first nine months of its 2012 financial year -- up four per cent from $608. …

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