Business

CAE profits soar on gain from sale of Chinese flight training centre

CAE corporate headquarters are shown in Montreal, Wednesday, August 10, 2016. THE CANADIAN PRESS/Graham Hughes

CAE corporate headquarters are shown in Montreal, Wednesday, August 10, 2016. THE CANADIAN PRESS/Graham Hughes

MONTREAL — Flight training and simulator provider CAE Inc. says its earnings soared 35 per cent in its latest quarter on proceeds from the sale of its stake in a Chinese training centre.

The Montreal-based company says its net income attributable to shareholders was $65.2 million or 24 cents per share in the three months ended Sept. 30. That compared with $48.3 million or 18 cents per share a year earlier.

Excluding a gain from the sale of a 49 per cent stake in the Zhuhai Flight Training Centre for US$96 million, CAE (TSX:CAE) earned $58.2 million or 22 cents per share, up from $55.5 million or 21 cents per share.

The adjusted profit was two cents per share below analyst forecasts, says RBC Capital Markets analyst Steve Arthur.

Revenue for its fiscal second quarter was $646 million, up from $635.5 million a year earlier.

CAE says it received $931 million in orders in the quarter, with more than half coming from defence customers.

The company says that former CGI chief executive Michael Roach is joining its board of directors.

More on Metronews.ca