CAE's orderbook looks set to register another year of record growth despite serious dollar parity issues.
The Canadian dollar has surged in relation to the US dollar recently, achieving parity on 20 September for the first time since 1976, rising 62% since 2002.
For a business such as Montreal-based CAE - whose US business accounted for a third of total sales last year - that represents a massive built-in handicap. It has recently secured contracts for three more full-flight simulators and training devices valued at more than C$50 million ($50 million), bringing the total number of full flight simulators sold by CAE so far this year to 21.
"Last year we made 34 simulator sales and we are only half way through this financial year and we have already secured 21 orders. In 2006, we managed 21 during the whole of the year," said CAE.
The latest contract awards will see CAE design and manufacture a CAE 7000 Series Boeing 747-8 full-flight simulator for Boeing subsidiary Alteon Training, scheduled for delivery in autumn 2009. The 747-8 simulator will also convert to a 747-400. A 777-300ER simulator for Virgin Blue featuring CAE's new True all-electric motion system will be delivered in mid 2008 and Lion Air will receive a 737-900ER simulator at its Jakarta training centre in early 2008.
CAE's recent restructuring, which was launched two years ago, has involved significant changes to operations and processes as well as products and services. This led to revenues for its latest financial year increasing by 13% to $1.25 billon with growth over all market segments.
Source: Flight International
