(Reuters) – Aviation training specialist CAE (NYSE:CAE) Inc on Wednesday reported a 77% drop in fourth-quarter profit, as demand for its full-flight simulators and pilot drills remained stressed due to the COVID-19 pandemic.
Canada has been grappling with rising COVID-19 infections and a slower rollout of vaccines than other countries due to a lack of domestic production, leading to prolonged disruptions for businesses and other economic activity.
Faced with the slowdown in its civil aviation division, CAE in March agreed to buy L3Harris Technologies (NYSE:LHX) Inc’s military training division to double its defense business in the critical U.S. market. Montreal-based CAE said deliveries of flight simulators fell to 14 units in the fourth quarter from 21 units a year earlier.
The company said its net income fell to C$18.8 million ($15.58 million), or 7 Canadian cents per share, in the fourth quarter, from C$81.1 million, or 29 Canadian cents per share, a year earlier.
Revenue fell to C$894.3 million from C$977.3 million in the year-ago period.
($1 = 1.2066 Canadian dollars)
CAE profit slumps as pandemic dents demand for aviation training
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