Stockwatch – CAE Secures $110m In Military Aviation Contracts

Stockwatch – Canadian flight-simulator manufacturer CAE, Inc. (TSE:CAE, Mkt cap 3.76B, P/E 19.58, Div/yield 0.06/1.69, EPS 0.73, Shares 264.02M) has won contracts with an aggregate value of about $110m from global military aviation clients, including the air forces of Germany and New Zealand.

CAE Inc contracts $110m global military aviation clients

CAE Inc has won contracts with a value of about $110m from global military aviation clients.

In a statement issued last week, the Montreal-based company said that under the new contracts it would provide a range of training systems and services in several countries.

One of the contracts foresees development and support of the T-6C ground-based training system for the Royal New Zealand Air Force. Contracted by Beechcraft Defense Company, CAE will supply the country’s air force with operational flight trainers, customized pilot training and a computer-based classroom training system. The deal also includes on-site maintenance and training support services at RNZAF Base Ohakea, to be provided through CAE New Zealand.

Another deal will involve a visual systems upgrade on the German Air Force’s Eurofighter simulators, including installation of the CAE Medallion-6000 image generator. The contract was signed with the country’s Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support.

Korea Aerospace Industries (KAI) has also chosen the CAE Medallion-6000 system, to complement its T-50IQ full-mission simulator that the company is currently developing for the Iraqi Air Force. CAE will also provide a database modeling station and support KAI with integration and training services.

The Canadian manufacturer will deliver a KC-135 boom operator weapon system trainer under its fourth contract, the aim of which will be to improve the synthetic training capabilities of tanker boom operators. The name of the customer for this order was not disclosed.

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