Graham Warwick/WASHINGTON DC
Improved productivity boosted simulation sector market leader CAE to post record earnings in the year ended 31 March, and the Canadian company expects to meet or exceed its goal of doubling net earnings by 2002/3. Earnings from continuing operations rose 49% to C$135 million ($88 million), on sales up only slightly to C$1.19 billion.
Commercial simulation sales edged up to C$481 million, with CAE maintaining its 80%-plus market share, while military simulation revenues rose 7% to C$410 million.
Operating profits on the civil side rose 42%, thanks to productivity improvements, streamlined manufacture and high production volume. Last year's figures include little revenue from CAE's new training venture, its first flight training centre having opened in São Paulo in April. Operating profits from military simulation rose 127% after four businesses were consolidated into a single unit.
CAE has meanwhile disposed of its Belgian wedge wire manufacturing operation and its cleaning technologies businesses in the USA, UK and Germany, to improve its focus on simulation and controls.
Source: Flight International