August 9, 2012 / 1:22 PM / 5 years ago

UPDATE 1-CAE profit halves on restructuring costs

2 Min Read

Aug 9 (Reuters) - CAE Inc , an aviation trainer and flight simulator maker, said its profit more than halved in the first quarter on restructuring and acquisition costs.

The company, which caters to both civilian and military markets, has been making acquisitions to expand its business, but at the same time is also restructuring its operations in the wake of slowing defense spending in Europe.

CAE cut nearly 4 percent of its workforce days after it announced its $313 million acquisition of aviation trainer and crew recruiter Oxford Aviation Academy in May.

The company incurred a C$32 million charge in the first quarter on restructuring and acquisition costs.

Net income attributable to shareholders fell to C$21.3 million, or 8 Canadian cents per share, in the quarter, from C$43.1 million, or 17 Canadian cents per share, a year earlier.

On an adjusted basis, the company earned 18 Canadian cents per share.

Revenue rose 12 percent to C$480.1 million.

CAE also increased its quarterly dividend by 25 percent to 5 Canadian cents per share.

Sales at its military division fell 2 percent to C$202.8 million, while combined civil segments revenue was up 20 percent at C$251.2 million.

Shares of the Montreal-based company, which has a market value of $2.62 billion, closed at C$10.10 on Wednesday on the Toronto Stock Exchange.

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