CAE profit down as Oxford Aviation Academy acquisition costs bite

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Montreal-headquartered training and simulators provider CAE posted a 12% increase in revenue to C$480.1 million ($482.8 million) in its first quarter to end-June, though pre-tax profits more than halved to just C$27.9 million with the impact of C$32 million in restructuring, integration and acquisition costs associated in part with its debt-financed C$314 million purchase of Oxford Aviation Academy, which closed in May.

Civil market activity "continued to be robust" as CAE took orders for seven full-flight simulators during the quarter. Revenue was up by a fifth to C$251.2 million. Operating profit was up 5.5% to C$47.2 million, though operating margin slipped to 19%, compared to 21.5% during the quarter last year.

Military segment revenue and operating profit dipped by 2% and 3% respectively, to C$202.8 million and C$28.4 million.

CAE ended the quarter with nearly twice the long-term debt it held a year ago, at just over C$1 billion.