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Flight training, simulator company CAE earned record revenues, profits last year

MONTREAL – CAE Inc. says its just completed fiscal year was the best in the flight training and simulator builder’s 69-year history.

The Montreal-based company says it posted record revenues and profits in fiscal 2016, with net profit surging 12.5 per cent to $230.3 million as revenues surpassed $2.5 billion for the first time.

The year was capped by a strong fourth quarter in which revenues grew 14 per cent to $722.5 million.

Net profits dipped to $59.7 million from $67.7 million in the quarter, but adjusted earnings increased to $72.8 million from $63.3 million.

CAE said it sold an industry-leading 53 full-flight simulators over the year amid growing demand for pilot training around the world.

CAE (TSX:CAE) expects the pace of civil training demand will continue as it looks to capture more of the $3.3 billion annual civil training market.

“Our assumptions for growth in civil are based on the continued healthy growth rate of passenger traffic,” CEO Marc Parent said Thursday during a conference call.

Parent said demand for military training is also increasing as governments outsource training and use more simulators to rehearse missions.

The company has an overall order backlog of $6.4 billion and expects operating income will increase by at least 10 per cent next year, he said.