CAE Scores Two Military Contracts Valued At $100 Million

CAE Inc, a manufacturer of flight simulators, recently announced the winning of two military contracts signed with the Netherlands, Germany and more global defence forces at a value of around $100 million.

The company, based in Montreal, is planning to increase CH-47 Chinook helicopter training to help the Royal Netherlands Air Force at a CAE training location in the United Kingdom.

This contract means that Chinook aircrews will be allowed to continue their training at the facility until 2018, with an increase in training of up to 1,000 hours every year.

“The decision to increase their training with CAE is a welcome endorsement of our strategy,” says Martin Gagne, CAE’S military unit president.

At the same time, but in a separate deal, CAE also won a contract to supply major product enhancements to the staff training system for the German Army.

There was no breakdown from the country as to what the price of each contract was, but a confirmation stated that they were worth more than $100 million.

These contracts come as a silver lining to the downturn in the aerospace sector. CAE experienced a drop in simulation sales of 44% to $63.9 million reported in the quarter ending Sept 30.

CAE also announced 700 layoffs in May, the majority coming from Montreal.

The winning of these contracts reveals a promising future along with CAE’s cost-cutting and growth in the military business.

Annual revenues for the company surpass $1.6 billion and the TSX-listed CAE currently has 6,500 employees at more than 90 bases and training facilities in 20 countries.

Leave a Reply

Your email address will not be published. Required fields are marked *