Stockwatch – CAE Secures Defence Contracts worth $115m

Stockwatch – Canadian aviation-training and simulation products provider CAE, Inc. (TSE:CAE, Mkt cap 3.52B, P/E 18.60, Div/yield 0.07/2.10, EPS 0.72, Shares 264.66M) has announced that it has won contracts to the value of approximately $115 million to provide a range of training systems and services for global defence and security customers.

Stockwatch CAE defence contracts $115m

Stockwatch – CAE secures defence contracts worth $115m

These include the renewal of the contract to provide MQ-1 Predator/MQ-9 Reaper aircrew training to the United States Air Force (USAF), plus an agreement to update the Royal Canadian Air Force’s (RCAF) CP-140 simulator. In addition, a contract to design and manufacture a UH-72A flight training device for the United States Army has been negotiated.

USAF has exercised the contract option for the second year for CAE USA to provide MQ-1 Predator and MQ-9 Reaper remotely piloted aircraft aircrew training services and courseware development. CAE USA will continue providing classroom, simulator and live flying instruction for more than 1,500 pilots and sensor operators who train at a number of USAF bases each year.

Outlining the contract awarded from the Government of Canada, CAE said the work will see it carry out a significant visual system update of the RCAF’s CP-140 full-flight simulator. The simulator will benefit from the latest technologies in image quality, as well as enhance the RCAF’s ability to correlate, re-use and rapidly update databases to support training and mission rehearsal requirements.

The contract agreed with Airbus Defense and Space, Inc. includes an undertaking to manufacture a further UH-72A Lakota Synthetic Flight Training System – in addition to the one currently being built for the U.S. Army – that will support rotary wing pilot training at the U.S. Army’s Aviation Center of Excellence.

“We are continuing to execute on a solid foundation of existing programs, and remain encouraged by the pipeline of global opportunities we have in front of us,” said Gene Colabatistto, group president of Defence and Security.

Stockwatch – CAE’s income grew by 3.78%, year over year, to $0.17 per share during the most recent quarter. This was among the strongest growth seen by any company in this industry.

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