CAE profit falls, to cut 100 more jobs

Thu Nov 8, 2012 4:47pm EST
 

(Reuters) - CAE Inc (CAE.TO: Quote), an aviation trainer and flight simulator maker, said on Thursday it may cut 100 more jobs as part of an ongoing restructuring.

CAE, which reported a 6 percent fall in second quarter profit, cut 300 jobs in May on weak demand in Europe. The company supplies to commercial airlines and defense forces.

The two cuts will affect 5 percent of the company's 8000 employees.

"We are undertaking additional restructuring estimated to cost C$15 million to right-size our operations for current and anticipated contracts," Chief Executive Officer Marc Parent said on a post-earnings conference call with analysts.

The company said in May it expects to take a charge of about C$25 million in the first half of fiscal 2013 related to the restructuring.

The biggest weakness appears to be in Germany, where orders from defense forces have fallen faster than expected, National Bank Financial analysts said in a client note on Thursday.

Restructuring in Germany is not expected to impact jobs in Canada immediately, Parent said.

Net income attributable to equity holders fell to C$36.5 million, or 14 Canadian cents per share, in the second quarter, from C$38.7 million, or 15 Canadian cents per share, a year earlier.

Revenue rose 19 percent to C$514.4 million.

Shares of the Montreal-based company, which has a market value of about C$2.69 billion, closed marginally down at C$10.31 on the Toronto Stock Exchange.

(Reporting by Sandhya Vijayan in Bangalore; Editing by Sriraj Kalluvila)